EDGEWATER, N.J. – An Edgewater stock promoter who the IRS said hasn’t filed a personal income tax return in nearly 20 years -- while ducking taxes on $1.75 million in income over three of them -- pleaded guilty to tax evasion.
Danny Colon, 52, the sole owner and operator of DC International Consulting, “controlled 17 brokerage accounts, some of which were in the name of DCI, some in the name of another individual and some jointly in the name of Colon and the other individual,” IRS Special Agent Robert Glantz said after Thursday's plea in federal court in Newark.
Between January 2009 and December 2011, Colon, through DCI, primarily promoted microcap stocks and was compensated in shares of stock that he immediately sold within a few weeks, Glantz said.
Colon hasn't filed a personal income tax return since 1999, the special agent said.
During that time, he said, Colon failed to pay the government:
- $179,957 in taxes on $494,880 of income in 2009;
- $277,946 in taxes on $716,565 of income in 2010;
- $189,709 in taxes on $537,426 of income in 2011.
“In total, for the years 2009 through 2011, Colon failed to report approximately $1,748,871 in additional income,” Glantz said, “upon which there was an additional tax due and owing to the government of approximately $647,612.”
“To build faith in our nation’s tax system, honest taxpayers need to be reassured that everyone is paying their fair share,” said Jonathan D. Larsen, Special Agent in Charge of the IRS-Criminal Investigation Newark Field Office.
Colon’s plea to a single count of tax evasion “should reassure those Americans who file accurate, honest and timely returns that the government will hold accountable those who do not,” Larsen said.
The judge in Newark set sentencing for June 5.
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