Fat Joe gets a fat payday by evading taxes
Newark, New Jersey – Famous rapper Fat Joe has been involved in a stint of tax evasion. On Thursday the rapper pleaded guilty to not filing taxes on 3 million dollars in income generated from his music and rap career. Joseph Cartegena or “Fat Joe” was once a billboard topping artist with some of his hits. At one time in his career he was actually a platinum selling artist.
Cartenega made his plea in Newark because that is where some of his companies are incorporated.
The rapper is 40 years on and a native of Miama Beach whos career was launched into the spotlight by such hits as “whats Luv”
The years covered by this prosecution were from 2007-2010 and cost the federal government close to a million dollars in forfeited tax revenue. Cartenega entered guilty please for two counts of tax evasion in a New Jersey courtroom on thursday.
Fat Joe who seemily contradicted his name with his recent weight loss. It is rather an inspirational story seeing as how at one time he was so overweight that he actually earned the name “fat joe”. But with the recent deaths of some great and overweight stars Cartenega decided to turn his life around and became an advocate of health and fitness.
In federal court Thursday, when asked by U.S. Magistrate Cathy Waldor if he understood the charges he was facing, he replied, “I super-understand it.”
Cartagena’s lawyer, Jeffrey Lichtman, said outside federal court that his client “had already taken steps to resolve this situation” before he had been charged. He said the rapper hoped to pay back the taxes by the time of his sentencing April 3.
Cartenega was convicted and his bail was set at a quarter of a million dollars. He could face up to two years in prison and penalties from the IRS of up to a quarter of a million dollars.
Categories: Federal Tax, Income Tax, Tax Evasion, Tax Law Tags: avoiding taxes, fat joe, fat joe tax evasion, federal income tax, federal tax, federal tax fraud, filing taxes, income tax, tax crime, tax evasion, tax the rich
Federal Tax Fraud Perpetrator Gets Conviction
Jorge Castellanos, 49, a businessman from Cummings was convicted to four years in prison following false personal income tax returns filed by Jorge in 2006 and 2007. He was found and pleaded guilty earlier this year in September after federal prosecutors identified the false claims made.
“This office will continue to aggressively prosecute individuals, who knowingly and willfully defy their tax obligations by lying and cheating,” U.S. Attorney Sally Quillian Yates in the news release.
Castellanos along with tow unidentified individuals founded an investment firm in 2004 called GC Trading LLC. The business was founded with the intent of selling overstock golf equipment. However, Castellanos maliciously convinced his partners and investors to make transactions that went directly into his personal bank account. The funds, which were intended to go towards buying merchandise, instead went to fulfilling his own grandeur needs.
Accountants questioned the source of the funds and were told that they were sourced from loans. Lying on your tax return is a federal offense and Jorge seems to have paid the ultimate price. The false tax returns led to a tax loss of $1.3 million dollars ultimately leading to Jorge Castellanos arrest and prosecution.
Hopefully this conviction will be a lesson learned to those who want to take advantage of the federal government by committing tax fraud.
Categories: Federal Tax, Tax Evasion, Tax Law Tags: avoiding taxes, federal income tax, federal tax, federal tax fraud, income tax, tax crime, tax evasion