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Lake Orion man sentenced in federal court for income tax evasion



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July 02, 2014 - By Dan Shriner

Review Editor

A Lake Orion man was sentenced to six months confinement in a federal facility for filing a false federal tax return and ordered to pay $86,581 in restitution.

Edward Weglarz was sentenced on June 23 by U.S. District Judge Gerald E. Rosen in Detroit.

Weglarz pleaded guilty in December to filing a false return in a plea bargain agreement with the government.

He was the owner of Eastern Market Tanker (EMT) leasing in Dearborn and was convicted of causing his company to pay more than $600,000 in personal expenses to himself and disguised those payment in EMT's books as legitimate expenses.

Weglarz will be required to serve a term of three years of supervised release following completion of his prison term and perform 120 hours of community service at Focus Hope.

He was ordered to pay $86,581 in restitution to the government.

According to court documents, Weglarz operated Eastern Market Tanker Leasing, which was engaged in interstate trucking. As president of the company, Weglarz controlled its operations and finances.

For the tax years 2006, 2007 and 2008, Weglarz caused EMT to pay more than $600,000 in personal expenses for himself and disguised the payments in EMT's books and records as legitimate business

expenses.

Weglarz also diverted EMT's funds to Multivest Properties, another company that he controlled and falsely classified those payments as legitimate EMT business expenses. These actions by Weglarz caused EMT's corporate net income and tax liability to be understated. Because Weglarz and EMT did not report the payments on behalf of Weglarz, his personal income was also understated, falsely reducing his gross income and individual tax liability, according to the IRS.

"The prosecution and sentencing of Mr. Weglarz, who diverted corporate funds for his benefit and then intentionally filed false corporate and individual income tax returns, is a fundamental element in maintaining public confidence in our tax system," said Acting FBI Special Agent in Charge Carolyn Weber.

Weglarz was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined soon.

The case was investigated by special agents of the IRS-Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Christopher Varner.

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