Optometrist sentenced to prison for tax evasion
An optometrist with practices in Fayette and Greene counties was sentenced to spend 21 months in federal prison and ordered to pay $40,000 for bilking the government out of taxes over several years.
In recent filings, Dr. David P. Alan, 65, of Rices Landing asked U.S. District Judge Alan N. Bloch for a sentence that did not require jail time, noting the staff in his three offices could be laid off, and noting his history of providing free eye care over the years. Has has until Oct. 28 to turn himself in to the U.S. Marshals to begin serving the sentence.
A pre-sentence report recommended Alan serve between 18 and 24 months in prison, and prosecutors urged Alan serve jail time despite paying $620,000 in back taxes, penalties and interest.
In addition to prison time, Alan must also serve three years of supervised release, Bloch found.
As one of the conditions of Alan’s supervised release, Bloch ordered that he has to “timely file local, state and federal tax returns as required by law.” Additionally, he has to give his probation officer any requested financial information.
“Today’s sentencing is yet another victory for the honest taxpayer,” said Thomas Jankowksi, special agent in charge, IRS-Criminal Investigation, Pittsburgh field office.
“Those Americans who file accurate, honest and timely returns can be assured the government will hold accountable, those who don’t.”
Alan, a longtime eye doctor with offices in Masontown, Connellsville and Waynesburg, said in court filings that he listened to “charlatans” when he set up a shell corporation to funnel money through so he could avoid paying taxes.
The multi-count indictment alleged that when Alan and his wife 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.
The indictment against Alan also alleges that, in 2001, the couple claimed to make $20,254, but really earned $148,785 in taxable income. That meant they owed about $35,852 in taxes, but only paid $3,041, the indictment alleged.
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 in Nevis, an island in the Caribbean Sea.
Authorities alleged he created a shell company, and had suppliers bill that company. Then, he would use the shell company to bill his optometry business at an inflated cost, authorities alleged.
Alan pleaded guilty to one count of tax evasion in April.