Mike “The Situation” Sorrentino is facing serious legal issues together with his brother Marc Sorrentino. The duo have been indicted by the Department of Justice on various charges, including tax evasion and structuring and falsifying records. These fresh charges add to the Sorrentino brothers’ woes since they both currently have pending cases.
In 2014, they were charged on multiple tax-related cases. Mike faced one count for failure to file a 2011 tax return and one count for conspiracy. In addition, he was also charged with two counts of misrepresenting the facts in his tax returns between 2010 and 2012. When it comes to the latest charge, he is accused of structuring funds in an attempt to dodge currency transaction reports.
On the other hand, Marc is accused of falsifying documents with the aim to obstruct an ongoing grand jury investigation. The Feds initially alleged that while working as his brother’s manager, Marc evaded tax using two companies under their control. The entities in question are MPS Entertainment and Situation Nation.
The companies were registered as S-Corporations, thus making them pass-through entities. This means all expenses and income linked to the firms pass through to the shareholders (the Sorrentino brothers). The Department of Justice alleges that the duo purposefully collected funds from the entities to cover a wide variety of personal expenses.
It has been reported that the brothers used the money to buy expensive clothing, and flashy vehicles. The transactions were recorded as legitimate business expenses. They also are accused of understating income received by both Situation Nation and MPS Entertainment.
In 2011, Mike was accused of failure to file a tax return after netting an annual income of almost $2 million. The Feds state that he committed the offense by concealing his income, falsifying documents relating to the corporate return for Situation Nation. Additionally, he also failed to file personal return.
These charges are very serious, and I hope that the Sorrentino brothers have hired themselves a top notch tax attorney!
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