Local News in Brief : Guilty Plea in Tax Scheme
A New York City man pleaded guilty Monday in Los Angeles federal court to two felony charges stemming from a tax shelter scheme featuring celebrity audio instructional programs.
Daniel F. Schustack, 38, pleaded guilty to conspiracy and aiding the filing of false income tax returns in connection with the scheme, which involved investments in commercial cassettes worth far less than the amount claimed.
The cassettes, few of which were ever actually distributed, featured instructional lessons prepared by such celebrities as Tommy Lasorda, Dale Evans and Pat Boone, none of whom was aware of the details of the tax shelter, Assistant U.S. Atty. David Katz said.
The Internal Revenue Service has disallowed all tax deductions and credits on the cassettes and assessed interest and substantial penalties against many of the more than 1,100 investors, who paid in $12.6 million to the purported tax shelter, Katz said.
Schustack admitted that he helped arrange for the 15-minute readings to be appraised at up to $199,000.
Schustack faces a maximum penalty of eight years in prison and a $15,000 fine when he is sentenced June 27.
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