Two South Florida brothers were sentenced to prison for income tax evasion.
Michael Farnell received 18 months in prison and his brother James Farnell received 42 months.
According to court records, the brothers, both of Boca Raton, Fla., sold stock in a privately held Florida-based technology company between 2004 and 2006 and failed to report the capital gains or pay taxes on the capital gains from those stock sales. In 2004, the U.S. Securities and Exchange Commission filed a lawsuit against the Farnell brothers for securities violations at another company they operated in 2000. A majority of the stock sales at issue in this case violated the injunction from the SEC’s lawsuit.
Michael Farnell was ordered to pay restitution of $448,128 and James Farnell was ordered to pay restitution of $434,115, both to the IRS.
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