Oakland Dentist Pleads Guilty To Tax Evasion

OAKLAND – Jack Carlo Isaacs pleaded guilty today to tax evasion announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.

According to the plea, Isaacs, 73, of Oakland, has been a practicing dentist since 1972, specializing in endodontics, root canals, and dental implants.  From 1997 through the present, Isaacs owned and operated Isaacs Dental, Inc.  Isaacs acknowledged that as of September 26, 2012, he knew he had unpaid federal income tax liabilities for 2002, 2003, 2005, 2009, 2010 and 2011in the amounts of $35,128.09; $47,313.00; $6,418.00; $31,692.00; $41,739.00; and $9,013.00, respectively.  Further, Isaacs admitted that between September 26, 2012, and April 2, 2013, he attempted to evade and defeat the payment of his federal income tax liabilities by committing various affirmative acts, including the following:  

• On or about September 26, 2012, Isaacs sent a check to the IRS in the amount of $414,300, to be applied to his tax liabilities for 2003, 2005, 2009 and 2010, knowing that there were insufficient funds in that account, and that he had closed the account. 
• On or about November 9, 2012, Isaacs sent a check to the IRS in the amount of $9,122, to be applied to his 2011 tax liability, knowing there were insufficient funds in that account, and that he had also closed this account.
• On or about March 8, 2013, Isaacs caused fake money orders to be sent to the IRS to be applied to his 2002, 2003, 2005, 2009, 2010 and 2011 tax liabilities.  He did so knowing that these money orders were fake because they were drawn on a fictitious account at the Federal Reserve Bank.
• On or about August 26, 2013, Isaacs filed a Petition to Cease and Desist in the United States District Court for the Northern District of California, Case No. 13-cv-01394-WHO (N.D. Calif.) requesting that the court order the IRS to “cease and desist all collection activities” because Isaacs had paid his taxes.  He filed the suit to mislead the Court into believing that his taxes had been paid with the fake money orders referenced above, along with submitting a copy of another fake money order to the district court and to the IRS in the amount of $1,272,338. 

Issacs was charged on April 21, 2016, with one count of attempting to evade and defeat the payment of tax for 2002, 2003, 2005, 2009, 2010 and 2011.  He pleaded guilty to the charge.  He also agreed to pay $219,371.08 to the IRS which includes the sum of the taxes he owed plus interest.  Isaacs is scheduled to be sentenced by the Honorable James Donato on October 27, 2016, at 9:30 a.m., in Oakland. 

The maximum statutory penalty for attempting to evade and defeat the payment of tax, in violation of 26 U.S.C. § 7201, is five years in prison and a fine of $250,000.  However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. 

Assistant U.S. Attorney Cynthia Stier is prosecuting the case.  The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.