Aurora businessman gets year for lying on tax return

An Aurora businessman has been sentenced to a year in federal prison after prosecutors say he lied on his tax returns, failing to report almost $150,000 in income. 

In addition to the prison sentence, Phillip Allen Worack, 53, was ordered to pay a $5,000 fine. 

Click below for the release form the United States Attorney’s Office in Denver.

Here is the release:

AURORA BUSINESSMAN IS SENTENCED TO PRISON FOR FILING FALSE TAX RETURNS

        DENVER –  Phillip Allen Worack, age 53, of Aurora, Colorado, was sentenced yesterday by U.S. District Court Judge Walker D. Miller to serve 12 months and 1 one day in federal prison for subscribing two false tax returns, United States Attorney John Walsh and IRS Criminal Investigation Denver Field Office Special Agent in Charge Christopher M. Sigerson announced. Worack was also ordered to pay a $5,000 fine.  Worack, who is free on bond, was ordered to report to a facility designated by the Bureau of Prisons on or before November 8, 2010.

        Phillip Worack was indicted by a Federal Grand Jury on February 28, 2007.  On June 22, 2010, a jury found Worack guilty of two counts of willfully making or subscribing to false tax returns.  The jury deliberated for two days before returning the two guilty verdicts.  Worack was acquitted by the jury on charges of conspiracy to defraud the United States.

        According to the indictment as well as evidence presented at the trial, Worack was the president of L.K.S. Corporation which was in the business of providing consulting and financial public relations services for and on behalf of other companies. 

        On or about April 12, 2001, in the State and District of Colorado, Worack, willfully filed a false Form 1040 U.S. Individual Income Tax Return for the year 2000, which was signed under the penalties of perjury.  The tax return was filed with the Internal Revenue Service and which Worack did not believe to be true and correct as to every material matter in that the said tax return stated that total income for the year 2000 was $107,623.00.  He then and there well knew and believed, he had additional income in the year 2000 of approximately $132,997.71.

        For the subsequent tax year, on or about April 11, 2002, in the State and District of Colorado, Worack willfully filed a false Form 1040 U.S. Individual Income Tax Return for the year 2001, which was signed under the penalties of perjury.  The return was filed with the Internal Revenue Service and which Worack did not believe to be true and correct as to every material matter in that the said tax return stated that total income for the year 2001 was $43,032.00.  He then and there well knew and believed, he had additional income in the year 2001 of approximately $16,134.08.

        “The vast majority of Americans file accurate, honest and timely tax returns, and rightly expect the government to hold accountable those, like this defendant, who don’t,” said U.S. Attorney John Walsh.

        “IRS Criminal Investigation, together with the Department of Justice will investigate and prosecute those who violate our tax system,” said Christopher M. Sigerson, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.

        This case was investigated by Special Agents with IRS Criminal Investigation.  

        The case was prosecuted by an Assistant U.S. Attorney from Colorado with assistance from Department of Justice Trial Attorney John Scully.

####