Michigan Personal Injury Lawyer Found Guilty of Tax Crimes | Takeover bid
A federal jury convicted Michigan attorney Carl L. Collins, III on Nov. 16 of willfully filing five false tax returns for himself and one of his businesses.
Collins was a personal injury attorney with offices in Southfield, Michigan. He also owned a real estate company, First Third LLC, and two medical-related companies, MedCity Rehabilitation Services LLC and Alpha Living LLC. At trial, evidence proved that Collins failed to report substantial income he received from these companies and that he deposited on undisclosed interest in attorneys’ trust accounts (IOLTA), accounts banks used by lawyers only to hold money in trust for clients. As a result, Collins was able to conceal these funds from his tax preparers and the IRS.
Collins was found guilty of filing false personal tax returns for 2012, 2015, and 2018, filing a 2012 amended false return, and filing a 2015 false business return for Alpha Living. Evidence established that Collins failed to report approximately $600,000 of income he earned in 2012. He deposited most of those funds in an undisclosed IOLTA account and hid the deposits from his tax preparer. In his 2015 personal statement, Collins also did not report income over $800,000. Regarding his false 2018 personal tax return, Collins omitted approximately $300,000 of income that he deposited in another undisclosed IOLTA account. In total, evidence showed Collins reported no more than $2.6 million in income.
Collins is due March 21, 2023 and faces a maximum sentence of three years in prison on each count of filing a false tax return. He also faces a period of supervised release, restitution and financial penalties. A federal district court judge will determine any sentence after considering US sentencing guidelines and other statutory factors.
Acting Assistant Deputy Attorney General Stuart M. Goldberg of the Justice Department’s Taxation Division and U.S. Attorney Dawn N. Ison for the Eastern District of Michigan made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial attorneys Kenneth Vert and Jeffrey McLellan of the tax division are pursuing the case. Law Clerk Evan Mulbry and Paralegal Specialist Eric Mahoney of the Tax Division are assisting in the prosecution.