A Union County man who owned and operated contracting businesses in Essex County today admitted filing false tax returns that failed to report all his personal and corporate income, Acting U.S. Attorney Rachael A. Honig announced.
According to federal officials, Olger Fallas, 49, of Union, the owner and operator of Olger Fallas Painting (OFP) and Olger Fallas Properties (OFPROP) pleaded guilty to an information charging him with two counts of tax evasion.
According to documents filed in this case and statements made in court:
Fallas admitted that between 2013 and 2017 he owned OFP and OFPROP. He admitted that he attempted to hide personal and corporate income from the IRS by using a check-cashing business to cash customer payments, which he did not report to the IRS.
Fallas also admitted that he deposited hundreds of thousands of dollars in customer payments into bank accounts that were not associated with his companies.
Fallas admitted that he evaded paying approximately $1.7 million in personal and corporate income taxes during the scheme.
The counts of tax evasion each carry a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for June 22.