Carlson Sentenced to 46 Months for Tax and Mortgage Fraud

BUFFALO, NY—U.S. Attorney William J. Hochul, Jr. announced today that Steve Carlson, 52, of Jamestown, NY, a prominent restauranteur in the Southern Tier who was convicted evading the payment of taxes and mortgage fraud, was sentenced to 46 months in prison by U.S. District Judge Richard J. Arcara. Carlson was also ordered to pay restitution to the IRS in the amount of $391,972 and $599,086 to the EverBank of Florida. The court also finalized the forfeiture of over $2,000,0000.

Assistant U.S. Attorney Gretchen L. Wylegala, who is handling the case, stated that the defendant has a long history in the restaurant business. Carlson evaded the payment of his federal taxes from 2001 to 2008 by putting businesses and properties in names other than his own, thereby hiding assets that the government could use to satisfy the taxes owed. Included in this scheme are properties in Florida, one of which involved a multi-million-dollar loan. Carlson was a guarantor of the loan and was required to provide proof of income to the bank. The supporting documents included falsified tax returns, false financial statements, and a false Social Security number. The loan has since failed and the loss is at least $600,000.

This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

The sentencing is culmination of an investigation on the part of special agents of the Internal Revenue Service Criminal Investigative Division, under the direction of Charles Pine, Special Agent in Charge, and special agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard W. Kollmar.