Florida Escort Service Owner Sentenced to Prison for Filing a False Tax Return

A Miami escort service owner was sentenced today to 24 months in prison for filing a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida. 

According to court documents, Dennis Zarudny was the director and 100% shareholder of Denzar Inc., which did business as “Elite Miami Escorts” and “Elite Escort Service” in the Miami area. According to Denzar’s internet website, the company was a “prestigious escort agency providing 24 hour outcall escort services & adult entertainment for upscale gentlemen and couples in South Florida.” Zarudny previously pleaded guilty in April 2018 to filing a false individual income tax return for 2012 that underreported his total income from his escort business. 

For tax years 2011 through 2014, Zarudny filed false corporate and personal income tax returns with the IRS, which substantially underreported his business income.  Zarudny allowed his customers to pay for the escorts’ services by cash, check, and credit card.  Zarudny reported income from credit card transactions but did not fully report the income he received from customers who paid in cash and check.

In addition to the term of imprisonment imposed, Zarudny was ordered to serve one year of supervised release. The court scheduled a hearing to determine restitution to the IRS on December 7, 2018.

Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Greenberg commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant United States Attorney Joshua Rothstein and Trial Attorney Grace Albinson of the Tax Division, who are prosecuting this case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

Go to Source
Author: September 7, 2018