NEWARK, NJ – A plastic surgeon with a practice in Basking Ridge was convicted in federal court on Wednesday of fraudulently diverting millions in corporate earnings for his personal use in order to evade paying nearly $3 million in federal taxes between 2006 and 2010, according to an announcement by U.S Attorney Paul Fishman.
David Evdokimow, 55, of Harding Township was convicted by a federal jury of all eight counts of a superseding indictment charging him with one count of conspiring to defraud the United States, four counts of personal income tax evasion and three counts of corporate tax evasion.
Evdokimow was convicted following three-week trial before U.S. District Judge Noel L. Hillman in Camden federal court. The jury deliberated for a day before returning the verdict, according to Fishman.
Evdokimow has been practicing in an office at 96 S. Finley Ave. in Basking Ridge, with several specialties, including reconstructive, face and breast surgeries, as well as skin care, according to his website. The website includes multiple favorable ratings from patients.
According to the superseding indictment and evidence at the trial:
Evdokimow ran his medical practice through a corporation called De’Omilia Plastic Surgery P.C. (De’Omilia). According to the case, he conspired with others to conceal millions of dollars of taxable income from the Internal Revenue Service by forming shell corporations and then having trusted associates open bank accounts for those corporations.
Evdokimow then convinced those associates to give him their signatures or signature stamps so that he had full access to the shell company bank accounts while at the same time being able to conceal his connection to those accounts, according to the conviction.
The physician and the other conspirators then funneled millions of dollars in De’Omilia income into the bank accounts of the shell corporations and falsely claimed that these transfers were legitimate business expenses, the announcement said. Evdokimow also used bank accounts in the name of De’Omilia to pay his personal expenses, and falsely claimed those were business expenses too, according to the conviction.
Evdokimow used the shell corporation and De’Omilia bank accounts to pay for more than $5.8 million in personal expenses, including designer apparel, jewelry, vacations, artwork, and multiple residences, all of which he falsely claimed as business expenses, Fishman's announcement said.
Evdokimow also opened accounts at several banks in order to cash checks received directly from patients for professional medical services, the announcement said. Between 2009 and 2011, Evdokimow cashed over $360,000 in checks from patients, which he failed to report on his federal income tax returns, according to the conviction.
Evdokimow convicted of evading paying $3M in US taxes
Evdokimow's conviction specifies that he concealed more than $5.8 million in income from tax years 2006 to 2010. By concealing this income, Evdokimow evaded paying almost $3 million in taxes during that period, the announcement said.
Each of the counts with which Evdokimow is charged carries a maximum potential penalty of five years in prison and a $250,000 fine, according to Fishman's announcement.
Sentencing is scheduled for Feb. 24, 2016.
Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to the Nov. 18 verdict.
The government is represented in the case by Assistant U.S. Attorneys Paul Murphy and Justin Herring of the U.S. Attorney’s Office Criminal Division in Newark.