{"id":13930,"date":"2015-07-25T15:56:16","date_gmt":"2015-07-25T22:56:16","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=13930"},"modified":"2015-07-25T16:02:18","modified_gmt":"2015-07-25T23:02:18","slug":"father-three-sons-and-businessman-sentenced-for-hiding-money-from-irs","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=13930","title":{"rendered":"Father, Three Sons and Businessman Sentenced for Hiding Money from IRS"},"content":{"rendered":"<figure id=\"attachment_13935\" aria-describedby=\"caption-attachment-13935\" style=\"width: 257px\" class=\"wp-caption alignright\"><a href=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/07\/bitterman-shirt-closeup.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-13935 size-medium\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/07\/bitterman-shirt-closeup-257x300.jpg\" alt=\"bitterman-shirt-closeup\" width=\"257\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/07\/bitterman-shirt-closeup-257x300.jpg 257w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/07\/bitterman-shirt-closeup.jpg 360w\" sizes=\"auto, (max-width: 257px) 100vw, 257px\" \/><\/a><figcaption id=\"caption-attachment-13935\" class=\"wp-caption-text\">(Photo: Bitterman Scales Website)<\/figcaption><\/figure>\n<p><strong>PENNSYLVANIA<\/strong><\/p>\n<hr \/>\n<p>Four family members and businessmen were sentenced this week in U.S. District Court after being convicted of hiding money from the IRS to avoid paying taxes.<\/p>\n<p>In October 2010, following a three-week jury trial,<strong> Chester A. Bitterman Jr<\/strong>. and his sons, <strong>Craig L. Bitterman<\/strong>, <strong>C. Grant Bitterman<\/strong> and <strong>Curtis L. Bitterman<\/strong>, were convicted of conspiracy to defraud the United States.\u00a0 Craig Bitterman was additionally convicted of obstruction of justice.<\/p>\n<p>Prior to sentencing, the defendants paid $437,000 in restitution to the IRS.<\/p>\n<figure id=\"attachment_13939\" aria-describedby=\"caption-attachment-13939\" style=\"width: 216px\" class=\"wp-caption alignleft\"><a href=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/07\/Chester-Bitterman-Jr..jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-13939\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/07\/Chester-Bitterman-Jr.-216x300.jpg\" alt=\"Chester Bitterman Jr.\" width=\"216\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/07\/Chester-Bitterman-Jr.-216x300.jpg 216w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/07\/Chester-Bitterman-Jr..jpg 300w\" sizes=\"auto, (max-width: 216px) 100vw, 216px\" \/><\/a><figcaption id=\"caption-attachment-13939\" class=\"wp-caption-text\">Chester Bitterman Jr.<\/figcaption><\/figure>\n<p>At sentencing hearings held last week, <strong>U.S. District Court Judge James Knoll Gardner<\/strong> stated that the offense was serious and the conspiracy was a long-term, complex and concerted effort by a family to avoid taxation, officials said.<\/p>\n<p>These are the facts and circumstances surround this case, according to authorities:<\/p>\n<ul>\n<li>From\u00a01996 to 2005, the Bittermans owned and operated the <strong>Bitterman Scale Company,<\/strong> which now operates as <strong>Bitterman Scales LLC.<\/strong><\/li>\n<li>To hide their income and assets from the IRS, the Bittermans used aliases, offshore bank accounts and a complex series of sham paper transactions to disguise the income.<\/li>\n<li>The defendants transferred their personal and business assets to sham trusts purchased from the <strong>Commonwealth Trust Company, a tax protester organization<\/strong> that marketed trust products to clients for the purpose of avoiding federal income tax payment.<\/li>\n<li>The trusts were used to make it appear as though the defendants had little or no assets or income.<\/li>\n<li>In reality, the defendants retained complete access and control over their funds.<\/li>\n<li>In January 2008, the principal owners of the Commonwealth Trust Company were convicted at trial in Pennsylvania of tax crimes for causing losses of over $17 million and were sentenced to prison.<\/li>\n<\/ul>\n<p><strong>Chester A. Bitterman Jr<\/strong>., 81, was sentenced to serve three years\u2019 probation to include six months of home confinement, due in part to his age and ailing spouse confined to hospice care, and was ordered to pay a $5,000 fine.<br \/>\n<strong>Craig L. Bitterman, <\/strong>55, was sentenced to serve three years in prison and three years of supervised release with 1,000 hours of community service at a rate of at least 30 hours of service per week, and was ordered to pay a $10,000 fine.<br \/>\n<strong>C. Grant Bitterman,<\/strong> 53, was sentenced to serve 21 months in prison and three years of supervised release with 1,000 hours of community service at a rate of at least 30 hours of service per week, and was ordered to pay a $7,500 fine.<br \/>\n<strong>Curtis L. Bitterman,<\/strong> 61, was sentenced to serve 21 months in prison and three years of supervised release with 1,000 hours of community service at a rate of at least 30 hours of service per week, and was ordered to pay a $7,500 fine.<\/p>\n<p>The defendants paid themselves in cash and arranged bogus payments between the numerous trusts that they <a href=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/04\/IRS-Forms.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" size-medium wp-image-2717 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/04\/IRS-Forms-300x198.jpg\" alt=\"Tax Filing Deadline\" width=\"300\" height=\"198\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/04\/IRS-Forms-300x198.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/04\/IRS-Forms-1024x677.jpg 1024w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/04\/IRS-Forms-90x60.jpg 90w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/04\/IRS-Forms-180x120.jpg 180w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/04\/IRS-Forms-95x64.jpg 95w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>had created.\u00a0 These bogus payments were purported to be leases, management fees and fiduciary fees.<\/p>\n<p>The defendants submitted trust tax returns for their business and took fraudulent deductions for these payments to create the appearance of minimal or no taxable business income.\u00a0 After the IRS levied the business bank account and receivables, the defendants instructed their customers to pay another trust to thwart IRS collection efforts.<\/p>\n<p>The defendants also placed bogus liens and mortgages on their assets to make it appear to the IRS that the defendants had no assets that could be levied or seized as part of the tax collection process.<\/p>\n<p>Some of the defendants used aliases and bank accounts in the names of trusts to make school tuition payments for their children appear as if they were scholarships from third parties.<\/p>\n<p>In addition, to further conceal their assets from the IRS, at least one defendant used offshore bank accounts in the <strong>British Virgin Islands<\/strong> and three of the defendants arranged for sham transfers of real estate to their children.<\/p>\n<p>During the investigation, after <strong>Craig Bitterman<\/strong> was served with federal grand jury subpoenas requiring the production of trust records, he failed to produce the records to the grand jury and instead shipped those trust records to Texas and New Mexico in an attempt to conceal them, officials said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>PENNSYLVANIA Four family members and businessmen were sentenced this week in U.S. District Court after being convicted of hiding money from the IRS to avoid paying taxes. In October 2010, following a&#8230;<\/p>\n","protected":false},"author":1,"featured_media":1709,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,48,3],"tags":[1725],"class_list":["post-13930","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-main-slider","category-irs","category-u-s-department-of-justice","tag-irs"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Father, Three Sons Sentenced for IRS Fraud<\/title>\n<meta name=\"description\" content=\"Father, three sons and a businessman were sentenced for hiding money from the IRS to avoid paying taxes.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cjnotebook.com\/?p=13930\" \/>\n<meta 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