A Seattle area divorce lawyer was convicted earlier in the year of tax evasion charges, making false statements and obstructing justice. Felix Landau may serve up to 18 months in prison for the charges and must pay $61,232 in restitution. He could have been sentenced to up to five years in prison.
Just another run of the mill tax evasion case, right?
Maybe not. Investigators believe that Landau may have been hiding his finances from more than just the IRS: his wife was being duped, as well. In 1999, the divorce lawyer began having an affair. The next three years, 2000 to 2002, are the years for which he was found guilty of understating his income and subsequently shredding more than 50 boxes of financial records. During those years, Landau reported to the IRS – and to his wife’s divorce attorney – that he was taking home as little as $24,000 per year, about $87,000 less than he actually made. Over the next two years, he underreported his income by about $200,000. Rather than report the funds to the IRS and to his wife’s divorce attorney, he was spending the hidden cash on his girlfriend, with trips to Paris and Venice, as well as buying a new home together.
Landau claimed that his actions were the result of mental depression but the judge found that to be inconsistent with his actions.
Thank goodness the judge didn’t buy the defense. If depression were considered a valid excuse for tax evasion, we’d be in serious trouble.