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MANHATTAN---A Manhattan apartment rental agent has pleaded guilty to using offshore bank accounts to evade income taxes.
Francine Blacher, 63, of 225 W. 83rd Street in New York City, pleaded guilty Wednesday to filing a false personal income tax return for the year 2001. In addition, the defendant admitted in court that she substantially understated the income of her company, City Nest Realty Corp., in 2001 and 2002. Blacher's conviction requires that she pay all of the back taxes owed to both New York State and the IRS, with penalties and interest. Blacher's total federal and state tax liability will be approximately $400,000 when penalties and interest are included. The defendant will be required to file amended tax returns for the years 2000 - 2004.
According to the Manhattan district attorney's office, the investigation uncovered that Blacher, over an eight year period, used an Upper West Side check cashing agency to cash checks and postal money orders she received in her business. Prosecutors said Blacher often insisted that her customers and tenants pay her with postal money orders to make it more difficult to trace the funds to her. She was the sole employee of her company.
The investigation also uncovered that, in 1997, Blacher set up a bank account at Leadenhall Bank and Trust Company in Nassau, the Bahamas. Blacher used that account to hide income of approximately $75,000 from her real estate business that was earned in New York. Blacher sent the money to the Bahamas by use of Fed Ex packages, the charges for which appeared on her American Express card. Blacher accessed the offshore account from the United States by use of a debit card that she used to make purchases in Manhattan and elsewhere. The transactions were uncovered during the district attorney's investigation of New Yorkers who are hiding income in offshore banks and failing to declare it on their taxes.
Manhattan DA Robert Morgenthau said that seven people or organizations have pleaded guilty in connection with the use of undeclared offshore bank accounts resulting from a criminal investigation conducted by the district attorney's office. Morgenthau also said that there is a continuing investigation into other individuals who may have avoided paying income taxes and laundered hidden income. The district attorney urged all New Yorkers to declare their offshore accounts and all of the income they have earned on their tax returns. 11-17-05
© 2005 North
Country Gazette
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