A former Danville man had been ordered by a federal judge to pay more than $10 million for taking part in a scheme to avoid paying federal income taxes.

Joseph R. Eskel failed to pay taxes between 2003 and 2007, according to court documents. As of March 14, 2019, Eskel owed a total of $10,085,071 in taxes, penalties, and interest, according to court documents.

His wife, Carol Eskel, owes a total of $35,667 in civil penalties and interest.

Judge Joseph A. DiClerico Jr. ordered the money paid in a summary judgment signed May 18.

The Eskels claim exemption under the Foreign Sovereign Immunities Act, according to the documents.

“Their theories that only common law is valid and that the provisions in the United States Code are not enforceable are frivolous,” DiClerico wrote. “Similarly, their assertion that there have been no courts or judges in this country since 1789 is frivolous.”

In 1998, the couple transferred its 599 Main St., Danville, property to a Bon Accord, a “purported” trust, according to the complaint. The town of Danville took the property in 2014 because of tax liens.

“Upon information and belief, Bon Accord is a fictitious trust and sham created to protect assets of Joseph R. Eskel and Carel M. Eskel a/k/a Carol M. Eskel from future collection activity,” the complaint reads.

Eskel did not cooperate with the Internal Revenue Service’s examination of his federal income tax liability.

“Joseph R. Eskel paid mortgage and other personal expenses with postal money orders, cash, and gold or other coin, for the purpose of concealing assets and/or other business dealings,” the complaint reads.

Eskel earned income from his business, Alarm Devices Supply, according to the civil complaint.

“Joseph Eskel participated in the ‘Form 1099 OID Refund Scheme’ that involved filing bogus financing instruments. Eskel also filed other frivolous tax forms with fabricated information for tax years 2003 through 2007,” DiClerico wrote.

The Eskels did not respond to the motion of summary judgment filed by U.S. Department of Justice, DiClerico wrote.

The couple, which is representing themselves, could not be reached for comment last week.


Wednesday, July 01, 2020
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