TBO.com - TBO is Tampa Bay Online

Sarasota Man Arrested On Criminal Tax Charges

ADVERTISEMENT

By ELAINE SILVESTRINI | The Tampa Tribune

Published: February 12, 2009

TAMPA - A Sarasota man who has repeatedly tangled with the Internal Revenue Service was arrested today on criminal tax charges.

The indictment against Carel A. "Chad" Prater, 70, describes an undercover investigation that spanned from 2001 through 2003. Agents posed as both a potential customer and someone who could help Prater launder the proceeds of newsletter subscriptions from his Tax Escape Service customers.

In 2002, Prater was ordered to stop promoting, selling and using tax evasion schemes and to stop representing people before the IRS. He was later found in contempt of that order.

The 2002 ruling by U.S. District Judge Stephen D. Merryday came in response to a Department of Justice lawsuit alleging Prater and his associates were responsible for nearly $18 million in tax evasion.

According to the complaint, Prater filed invalid judgments against the IRS, sold bogus trusts, hid clients' income in anonymous limited liability corporations, filed frivolous tax returns and tried to persuade employers to stop withholding taxes from his clients' wages.

Prater charged up to $20,000 per client and had received nearly $500,000 from clients over six months, according to the complaint.

In 2005, Prater was among a group of people who sued the IRS, alleging its collection of taxes was illegal. That lawsuit was dismissed by U.S. District Judge Susan Bucklew, who wrote in her order that it lacked any basis in law. She also suggested the lawsuit was a violation of Merryday's injunction.

The 12-count indictment, which was handed up last month and unsealed today, also accuses Prater of three counts of lying under oath when called before a federal grand jury in October.

In each instance, according to the indictment, Prater denied violating the injunction or hiding money from the IRS.

If convicted on all counts, Prater faces maximum penalties of 33 years in prison and a $1.95 million fine.

Reporter Elaine Silvestrini can be reached at (813) 259-7837 or esilvestrini@tampatrib.com.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT