Modular Home Broker Hid $406,000 in Taxable Income, Faces 3 Years in Federal Prison
The owner of Factory Direct Modular Homes in Brick, N.J., pleaded guilty to tax charges for under reporting the business’ income for tax years 2002 and 2003 by about $406,000.
Janice Pfefferkorn, 54, who also went by the name Janice Morton, pleaded guilty to a two-count Information charging her with two counts of filing a false federal tax return.
According to court records, as a broker for a modular home manufacture, Pfefferkorn would typically collect a 10 to 20 percent deposit from modular home buyers. Final payments were due to the modular home manufacturer upon delivery of the home, at which time the manufacturer would pay FDMH a commission on the sale. Pfefferkorn understated the gross receipts of FDMH by cashing a large number of business checks and then deposit only a fraction of the proceeds back into the FDMH business bank account.
The total tax loss to the IRS is $125,000 for tax years 2002 and 2003. IRS Criminal Investigations discovered the under reported taxes after following up on leads the tax-collecting agency received.
Pfefferkorn faces up to three years in prison and a fine of up to $100,000.
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