East Troy man pleads guilty to filing false tax returns, will pay $457,269 in back taxes
MILWAUKEE—An East Troy man pleaded guilty Friday in federal court to filing false tax returns and will pay $457,269 in back taxes as part of restitution, according to a U.S. Department of Justice news release.
Gerald W. Niegelsen, 73, pleaded guilty to making a false statement on the Internal Revenue Service Form 1040, according to the release.
As the owner-operator of a business that offered pier installation, removal and storage services, Niegelsen "willfully" filed false tax returns in 2009, 2010, 2011 and 2012, according to the release.
"Niegelsen concealed significant unreported gross receipts in connection with the operation of the business," the release states.
Niegelsen cashed more than 3,000 checks that included $1.99 million of unreported business receipts converted into cash instead of being deposited into the business account, according to the release.
The case was investigated by IRS Criminal Investigation, according to the release.
Niegelsen faces up to three years in prison, a $100,000 fine, one year of supervised release and a $100 special assessment, according to the release. He will be sentenced July 6.