FOR IMMEDIATE RELEASE
December 6, 2006
DONALD GERALD MACK SENTENCED FOR TAX EVASION
DENVER – Troy A. Eid, United States Attorney for the District of Colorado, and Terry L. Stuart, Special Agent In Charge of the IRS-Criminal Investigation, Denver Field Office, announced that DONALD GERALD MACK, age 49, of Elbert, Colorado, was sentenced on November 30, 2006, by Chief U.S. District Court Judge Lewis T. Babcock to serve 3 months in federal prison followed by 3 months of home detention with electronic monitoring for tax evasion. MACK was also ordered to pay restitution in the amount of $370,178 to the Internal Revenue Service. Chief Judge Babcock ordered MACK to report to an institution designated by the Bureau of Prisons by January 8, 2007.
MACK was indicted by a federal grand jury on March 26, 2003. He pled guilty before Chief Judge Babcock on January 28, 2005. According to the indictment and subsequent plea agreement, DONALD MACK founded and became president, CEO and principal shareholder of a public company known as Comtec International, Inc., a New Mexico corporation whose intended business was the development of telecommunications services and products.
In December 1994, MACK was assessed a penalty of approximately $124,031 by the IRS based on the failure of a prior public company with which he was involved with to account for and pay federal payroll taxes. In January 1996, after he unsuccessfully appealed the IRS decision, the IRS served a notice of levy upon a bank where MACK had an account, thereby beginning the process of levying against his assets and property.
The indictment indicates that, beginning in or about November 1996, in response to the IRS action MACK, and local tax attorney MICHAEL JAY SHIDLER, entered into a plan to conceal and remove assets, property, and income from the reach of the Internal Revenue Service and MACK’s other potential creditors, through (1) forming and using multiple and interlocking trusts and domestic and offshore shell companies nominally controlled by other individuals; (2) converting MACK’s income into cash; (3) transferring cash and stock to domestic offshore accounts held in the names of the domestic and offshore shell companies and trusts; and (4) then repatriating and transferring the assets back into the United States through the acquisition of real estate properties in Parker, Colorado, held in the names of nominees and domestic shell companies and through “loans” extended to MACK by and through such entities.
MICHAEL JAY SHIDLER was sentenced on July 21, 2006 in a separate but related case by U.S. District Court Judge Robert E. Blackburn to serve 2 months in federal prison, followed by 8 months of home detention with electronic monitoring. He was also ordered to pay a fine of $22,000 for tax evasion.
“Tax Fraud undermines our whole system of voluntary compliance. Those who engage in such criminal conduct should expect to be prosecuted and spend time in jail,” said Terry L. Stuart, Special Agent in Charge, IRS-Criminal Investigation, Denver Field Office.
The case was investigated by the IRS-Criminal Investigations. The case was prosecuted by Assistant United States Attorney Ken Harmon.
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