BDO Seidman partner faces tax evasion charges
Stephen Favato faces jail if found guilty of helping a client evade tax
A BDO Seidman partner has been charged with attempting to help a client evade
tax and could face up to 11 years in jail and a multi-million dollar fine if
found guilty.
A US federal grand jury returned the indictment charging Stephen A. Favato, a
partner at the firm’s Woodbridge, New Jersey office, with tax evasion over his
work for Daniel Funsch, president of perfume maker Intarome Flavor and Fragrance
Corp.
Favato was also charged with corruptly endeavoring to obstruct and impede the
administration of the tax laws and willfully aiding and assisting in the
preparation and filing of the client’s false 2002 tax return, according to
WebCPA.
Favato is accused of advising Funsch to reduce his salary payments and
instead have this compensation paid to his company, Great Escape Yachts, in the
form of lease payments for a yacht. But since the corporation had not leased the
yacht it allowed Funsch to fraudulently deduct personal yacht expenses as
business expenses.