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Former CEO of Washington Bank Sentenced for Tax Fraud

Posted by Steve Karimi | May 27, 2019 | 0 Comments

Victor Karpiak, a former CEO of First Savings Bank Northwest in Renton, was sentenced to one year in prison in a U.S. District Court recently.  He is currently retired and residing in La Crosse, Wisconsin. Judge William M. Conley was responsible for sentencing after Karpiak was found to have avoided paying approximately $2.3 million in taxes. U.S. Attorney Brian T. Moran prosecuted the case and explained that Karpiak will also have one-year of supervised release and was fined $150,000.

Financial Details

The court has already secured $1 million from the defendant toward his owed taxes. Karpiak was described as having a pension that exceeds $150,000 per year and he owns multiple homes and vehicles. KIRO-TV & News in Seattle reported that he owes at least $867,540 in taxes plus over $100,000 in accrued interest.

Prosecutor Response

The prosecution alleged that the defendant was motivated by excessive greed, as he has historically enjoyed a very significant salary. In a statement to the court, prosecutors said that Karpiak refused to “pay a modest portion of earnings” toward the taxes he owed. The court asserted that he essentially stole from all taxpayers.

Part of the investigative process was handled by the local Seattle office of the IRS. Justin Campbell is a Special Agent in Charge that was active in pursuing this case. He explained that “everyone, including corporate officers, should be held accountable for paying their proper share of taxes.”

Federal Tax Fraud Laws

The Internal Revenue Service (IRS) is the federal agency that is tasked with managing the U.S. tax system. In I.R.C. § 7206, the provisions address fraud and false statements with a host of details including the following:

  • An individual commits fraud when they knowingly present a “return, statement, or other documents” that contains false information that is subject to sanctions of perjury.
  • The same applies to individuals who knowingly offer “aid or assistance” in compiling, advising, and preparing documentation that is false and demonstrates fraudulent intent.
  • Those who assist may commit fraud regardless of whether or not the party that they are assisting is actually aware that false information is contained in such documents.
  • Fraud is also committed by removing or concealing property or “any goods or commodities” in an effort to avoid the tax implications.
  • The fraud may involve a party who “withholds, destroys, or falsifies” any documents or records that are tax-related.

Those who are found to have committed these acts of tax fraud may face felony charges with a sentence of up to three years and fines of up to $100,000 for an individual or $500,000 for a corporation. The first basic element is that false information was presented. It is also necessary to prove that the offender acted with intent to defraud the U.S. tax system.

Seattle-Area Defense Lawyer for Allegations of White-Collar Crime

Crimes including various types of fraud and acts of forgery are examples of white-collar offenses. Defending these allegations requires closely analyzing often complex data. Attorney Steve Karimi is a seasoned local attorney who can provide effective legal representation for those facing such charges. For a consultation, contact the office today at (206) 621-8777.

About the Author

Steve Karimi

Steve Karimi attended Pepperdine University School of Law. After graduation he worked as a prosecutor in Seattle where he gained valuable insight to the criminal justice system. Attorney Karimi uses his experiences as a prosecutor everyday only now he fights for the justice of those accused.

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Named a "rising star" in criminal defense by Washington Law and Politics magazine, Mr. Karimi is a former prosecutor for King County who uses his insight into prosecution strategies to protect his clients' rights in criminal court.