Joseph Radcliffe, a 74-year-old stockbroker hailing from Elka Park, NY has been caught defrauding IRS. The man has, according to the US Department of Justice, pleaded guilty on account of tax evasion on his income from stocks.
Greene County’s scenic Elka Park witnessed its share of illicit activity from 2013 to 2019, when Joseph Radcliffe conspired with two of his relatives to wriggle out of paying their fair share of taxes. Together, they managed to pull the wool over the IRS’s watchful eyes.
What Is the Irs?
The Internal Revenue Service (IRS) is an institution under the authority of the US Department of Treasury. Its purpose is to collect taxes from the entire country, enforce the Internal Revenue Code, provide assistance to taxpayers, run financial benefit programs, and detect faulty or fraudulent tax filings.
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Established in 1862 under a different name, the institution has continued to serve the government for the past 159 years with merit. In 2018, a 15% cut in the workforce coupled with a 25% reduction in the enforcement force disappointed the employees, reducing morale. Yet, the agency carries out its duties effectively, as can be seen by the Greene County case.
How Did the Greene County Stockbroker Evade Taxes?
Firstly, the Wall Street broker, Joseph Radcliffe made sure not to open any bank or stock brokerage accounts in his name.
Next, using two brokerage firms; Universal Consulting LLC and Crackerjack Classics LLC, he collected capital gains from the stock trading done. He did not do any trading of securities or even hold them using his name.
The unreported income was transferred via these transactions:
- $128,147 was given to the bank for mortgage payments on Radcliffe’s home in Elka Park. This also included interest payments made to the same bank.
- $109,022 was paid to a law firm in New Jersey on account of the unpaid bills of Radcliffe.
- $99,675 in ‘cashed’ checks negotiated either by Radcliffe himself or by his relatives.
The Greene County man also acknowledged that he had not filed tax returns for the fiscal years of 2013 to 2019. Thus, Joseph Radcliffe was able to evade $50,000 of taxes due to the IRS.
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Imagine his surprise when the tax defrauding scheme was brought into the light, and also imagine Radcliffe’s dread when entire evidence unfolded against him, with the Department of Justice breathing down his neck. Evading taxes- what an awful act to be caught doing!
The Status of the Companies
The two companies which were used in the transactions carried out in favor of Joseph Radcliffe are consulting firms. They provide business advisory services, such as helping individuals or organizations to manage the legal, financial, and transactional issues faced.
Crackerjack Classics LLC, located in Tannersville NY, is now permanently closed at the address probably due to its link with the aforementioned case. Universal Consulting LLC is not active on the World Wide Web. Its website can also not be accessed currently.
What’s Next for Joseph Radcliffe?
Radcliffe is expected to be sentenced on April 28th, 2022 for a possible period of 5 years. Moreover, he will have to pay a hefty fine amounting to a maximum of $250,000. This is the usual penalty applied in such cases of the past. However, the verdict on April 28th will set the bar for Joseph Radcliffe.
