Burlington man sentenced to prison for bankruptcy, tax fraud

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CHICAGO – NOVEMBER 1: Current federal tax forms are distributed at the offices of the Internal Revenue Service November 1, 2005 in Chicago, Illinois. A presidential panel today recommended a complete overhaul of virtually every tax law for individuals and businesses. (Photo Illustration by Scott Olson/Getty Images)

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WASHINGTON — A Burlington man was sentenced to two years in prison for bankruptcy and tax fraud Thursday, according to Acting Assistant Attorney General Caroline D. Ciraolo of the Department of the Justice’s Tax Division.

According to court documents, 59-year-old Faiger Blackwell filed for bankruptcy for himself and his funeral home in 2007 after accumulating more than $300,000 in outstanding federal taxes and more than $1 million in other debts.

Authorities say that during the bankruptcy proceedings, Blackwell did not disclose that he was receiving income from a rental. He instead used that money to pay for business and personal expenses.

In July 2009, after the Internal Revenue Service levied one of Blackwell’s business bank accounts, he set up a new business and bank account in order to divert funds, avoiding the levy. He then used the concealed funds from the bankruptcy court, the IRS and other creditors to pay for personal expenses, including a cruise.

Blackwell pleaded guilty to one count of concealment of assets from a bankruptcy estate and one count of impeding the administration of the internal revenue laws in November 2015.

A judge ordered Blackwell to serve an additional three years of supervised release after completing his prison term. He is also expected to pay $404,619 in restitution fees.

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