Montgomery County Man Pleads Guilty To Tax Charges

PHILADELPHIA - Francis J. Bass, 61, of Montgomery County, PA, a former employee of Lundy Law in Philadelphia, pleaded guilty today to four counts of subscribing a false federal income tax return. As the Intake Coordinator for the law firm, he referred personal injury clients to medical providers and hired private investigators. In exchange for these referrals, Bass received payments directly from the medical providers and investigators selected by him. He received approximately $500 per client.

During tax years 2009 through 2013, Bass understated the income on his tax returns by failing to report the majority of the funds he received from these medical providers. To conceal the source of the funds he received for his referrals, Bass created a fictitious Schedule C “investigation” business, on which he reported a minimal amount of the referral payments.

For tax years 2009 through 2012, Bass failed to report approximately $483,901 in income and owed additional taxes of approximately $126,104. As part of his plea agreement, Bass agreed that he owed an additional $77,360 in taxes for approximately $341,264 in income for tax year 2013. The total amount of taxes owed to the IRS for 2009 through 2013 is approximately $203,464.

A sentencing hearing is scheduled for September 13, 2016. The defendant faces a maximum possible sentence of 12 years in prison, one year of supervised release, a possible fine, and a $400 special assessment

The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Terri A. Marinari and David J. Ignall.