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OIG: Office of Inspector General
   Current Section

Investigation Report

United States Attorney David Capp
Northern District of Indiana

M01-204 S. Main Street
South Bend, IN 46601

Hammond
FOR IMMEDIATE RELEASE:
March 29, 2011
www.usdoj.gov/usao/inn/

South Bend

Fort Wayne
Contact: Mary L. Hatton
Phone: (219) 937-5500
Fax: (219) 852-2770

INTERNATIONAL BUSINESSMAN JAMES SIMON SENTENCED

South Bend, IN—The United States Attorney's Office announced:James A, Simon, 60, of Huntertown, Indiana, was sentenced by Judge Robert Miller, Jr. to 72 months of imprisonment and 3 years of supervised release after being found guilty at trial of four counts of filing false federal income tax returns, three counts of failure to file reports of foreign bank and financial accounts, six counts of mail fraud involving private financial aid, and four counts of fraud involving federal financial aid.

From 2003 to 2006, Simon received money from five business entities with which he was affiliated, located in Gibralter, Cyprus, Colorado, and Indiana. He did not report the funds received from these entities on his federal tax returns. The Court found that Simon failed to report a total of over $3.1 million to the IRS.

Simon also did not disclose that he had an interest in foreign bank accounts held in Gibraltar, Germany and Cyprus, and did not file required “FBAR” reports with the Treasury Department regarding the foreign accounts. Further, Simon provided false information regarding his family’s income and expenses on applications for private financial aid to two different schools and on applications for federal financial aid to one college.

Simon is required to pay restitution to the Internal Revenue Service in the amount of $886,901. He will also pay restitution of $48,070 to the Department of Education, $17,000 to Canterbury School, and $101,600 to Culver Academy.

These charges were filed as a result of an investigation by the Internal Revenue Service Criminal Investigations. This case has been assigned to and will be prosecuted by Assistant United States Attorney Jesse M. Barrett.


 
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Last Modified: 05/10/2011