Failure to report income received is a common criminal tax investigation matter. We counsel our existing and prospective clients on the after-investigation process once a tax-related investigation has begun. Lately, most of our inquiries have come from Joliet, IL; Aurora, IL; and in the Naperville, IL general area. But also, because we regularly speak with special agents in the Downers Grove office, as well as Illinois agents in the Des Plaines, IL and Springfield, IL offices, we thought this article about an Illinois congressman would be an appropriate example to show what happens immediately after the criminal tax investigation.
A federal grand jury issued a formal charge of criminal tax law violation. This was an indictment of former U.S. Representative Aaron Schock, who reportedly deceived the federal government and his campaign committees and concealed it with illicit statements and claims.
“I appreciate the time and attention that the grand juries have given this matter to thoroughly review the facts and the evidence and to reach this decision,” said U.S. Attorney Jim Lewis, Central District of Illinois. “These charges claim that Schock deliberately and repeatedly violated federal law, to his personal and financial advantage. Mr. Schock held public office at the time of the alleged offenses, but public office does not exempt him or anyone else from accountability for alleged intentional misuse of public funds and campaign funds.”
Schock took part in a plan to cheat the federal government, his campaign, and his collaborators’ benefit, according to the 24-count charge document. Schock intentionally made false statements, claims, and vouchers to be sent to Congress for payment from his governmental allowance and from his campaign funds. By this statement of facts, he is likely to be prosecuted by both the United States and the State of Illinois.
The Congressman reportedly embezzled more than $100,000 from the government, his campaign committees and others as income to himself. Schock was charged with filing fraudulent federal income tax returns from 2010 to 2015, for failing to report additional income received.
Schock will be sent a summons by the U.S. Clerk of the court for the date when he must appear before the federal court in Springfield. Schock was not arrested, but the potential of arrest is still great. Because those violations affect both Federal and Illinois, either government body could choose to arrest, as they will often simultaneously investigate and prosecute. Illinois is generally more likely to issue arrest warrants for tax violations, in these cases. However, because Schock is a governmental official, it is unlikely that he will be immediately taken into custody.
Assistant U.S. Attorneys Timothy A. Bass and Patrick D. Hansen from the Central District of Illinois are prosecuting the case. The charges are being investigated by the FBI, Springfield Division; IRS Criminal Investigations; U.S. Postal Inspection Service, Chicago Division; FDIC Office of Inspector General; and the Illinois State Police.
If you are in need of tax resolution, please contact our office today. We are confident that we can help you as you move through this process.