Date: 03-23-2018

Case Style:

Case Number: 15-cr-394

Judge: William J. Martinez

Court: United States District Court for the District of Colorado (Denver County)

Plaintiff's Attorney: Pegeen D. Rhyne and Laura B. Hurd

Defendant's Attorney: Jeffrey S. Pagliuca, Alan Daniel Schindler and John Bucolo for Daryl Francis Yurek

Peter K. Hedeen and Thomas Richard Ward for Wendy Marie Yurek

Description: Denver, CO - Stapleton Couple Sentenced for Income Tax Evasion and Bankruptcy Fraud

Daryl F. Yurek, age 62, and Wendy M. Yurek, age 62, were sentenced by U.S. District Court Judge William J. Martinez on March 22 and 23, 2018. Mr. Yurek was sentenced to 50 months incarceration followed by three years of supervised release and an asset forfeiture money judgment was entered against him in the amount of $132,991.61. Mrs. Yurek was sentenced to 27 months incarceration followed by three years of supervised release. The Yureks and were also ordered to pay $1,614,536.38 in restitution to the IRS. Both were convicted by a Denver Jury on July 27, 2017, of tax evasion and bankruptcy fraud following a two week trial. Daryl Yurek was also convicted of three additional related offenses. Their sentences were announced today by United States Attorney Bob Troyer and IRS Criminal Investigation Special Agent in Charge Steven Osborne.

According to the indictment and evidence presented at trial, Daryl Yurek was a partner in Bolder Venture Partners from 1999 through 2012, and Wendy Yurek was a partner from 2008 through 2012. Daryl Yurek acted as a consultant to start-up and growing companies and provided a variety of services, including temporary management and fundraising. Daryl Yurek also exerted significant control over other companies, including ID Watchdog, and Veracity Credit Consultants. The Yureks reported tax due and owing for tax years 1999 and 2004 of $624,127 and $53,978, respectively. In 2006, the Yureks submitted an Offer in Compromise to the IRS attempting to settle their tax obligation for $75,000. With the Offer in Compromise, the Yureks indicated the reason for the offer was “Doubt as to Collectability – ‘I have insufficient assets and income to pay the full amount.’” Later, in September 2010, the Yureks filed with the United States usBankruptcy Court in the District of Colorado a Voluntary Chapter 7 Bankruptcy Petition. During the bankruptcy proceeding, Daryl Yurek testified that the primary reason for pursuing bankruptcy was "the $1.2 million that the IRS wants."

However, during the period the Yureks claimed to be unable to pay their tax liability, the Yureks caused Bolder Venture Partners and Veracity Credit Consultants to pay substantial personal expenses for the Yureks. In March, 2006, the Yureks purchased a downtown Denver loft as their personal residence for $1.3 million in the name of one of their sons. Between 2006 and 2011, Veracity Credit Consultants made mortgage payments of $526,511.99 for the Yureks’ loft, while Bolder venture Partners paid $43,866 for the loft’s Condo Association Fees. Additionally, between 2006 and 2010, Veracity Credit Consultants made $107,204.36 in rental payments for vacation homes in Tabernash, Colorado used by the Yureks. Daryl Yurek’s Pinehurst Country Club membership and associated expenses paid by Veracity Credit Consultants between 2007 and 2012 totaled approximately $90,810.74.

Furthermore, the Yureks committed numerous affirmative acts of evasion, including submitting false statements to the IRS on IRS Forms 433-A, IRS Collection Information Statement for Wage Earners and Self-Employed Individuals, as well as Daryl Yurek transferring shares he held in ID Watchdog to Veracity Credit Consultants and to his sons while falsely claiming to the IRS that he had not made any transfers for less than full value.

“It’s pretty simple: you’ve got to pay your taxes,” said U.S. Attorney Bob Troyer. “The Yureks were determined not to pay, now they’ll pay with prison.”

“Taxpayers thinking about participating in fraudulent tax schemes, including hiding assets, should stop in their tracks and carefully consider the consequences of taking the next step,” said Steven Osborne, Special Agent in Charge of IRS Criminal Investigation. “Those consequences include going to prison, being branded a convicted felon, and paying back all the taxes owed plus steep penalties and interest.”

Outcome: Daryl Yurek was sentenced to 50 months in prison and Wendy was sentenced to 27 months.

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