Rices Landing optometrist charged with tax evasion
A Rices Landing optometrist was charged with tax evasion over several years. David P. Alan, who has offices in Masontown, Connellsville and Waynesburg, allegedly seriously underreported his earnings on joint tax returns Alan and his wife filed with federal government.
One of the counts of the indictment alleged that when they filed their taxes for 2002, the couple claimed they made $38, and owed $4 in taxes, when in reality, they made $242,740 and owed the government $66,898.
Alan’s wife was not charged, or identified in the indictment.
In a 2001 tax return, the couple claimed to make $20,254 in the year, when they really had taxable income of $148,785, according to the indictment. That meant they owed about $35,852 in taxes, but only paid $3,041.
In 2003, the indictment alleged the couple made $214,756 and owed $52,019 in taxes, but did not file a return. Instead, Alan started an offshore shell corporation called Dynasty that was based on Nevis, an island in the Caribbean Sea.
His optical business was call Pouvior.
Alan allegedly used a mail drop in Canada for Dynasty, and had his employees at his optical business instruct suppliers to bill Dynasty instead of Pouvior.
Those invoices went to the Canadian post office box, and were forwarded to Pennsylvania, where prosecutors alleged that Alan marked up the costs 2.2 times, and then billed Pouvior from Dynasty.
When the Pouvior company made payment to Dynasty, those funds were sent to the offshore account in Nevis, prosecutors alleged.
The suppliers were paid their actual invoice prices through that offshore account using credit cards that were in Alan’s name, prosecutors alleged.
When IRS agents questioned him, Alan reportedly said that Dynasty was a vendor from whom Pourvoir purchased supplies.
He also concealed his involvement with Dynasty and its Nevis bank account, according to the indictment.
Prosecutors alleged the same scheme occurred in 2004, when Alan and his wife made $286,394 in taxable income and owed $75,326 in taxes, but did not pay it.
Assistant U.S. Attorney Paul E. Hull asked a judge to issue a summons to have Alan appear before a judge for arraignment. That will require him to post bond, which Hull asked be set at $25,000.
Tax evasion is punishable by up to five years in prison and $250,000 and three years supervised release.