SALT LAKE COUNTY, Utah (ABC4 News) – Two Utah men are facing multiple felony counts of tax evasion for allegedly failing to file tax returns for multiple years, and for not reporting millions of dollars in personal purchases.
According to charging documents. 48-year-old Matthew Mangum and 52-year old Marc Andrew Tager are both facing several felony counts of tax evasion, failing to file a proper tax return and one felony count of pattern of unlawful activity.
According to the report, Mangum has not filed Utah state income tax returns from 2012 to 2017 and Tager has not filed since 2014.
The Utah State Tax Commission said Mangum worked as a consultant for Jersey Consulting LLC, which is a company Tager owns. Mangum’s position allowed him to open any deposit or share accounts, endorse checks, order the payment of money, and withdraw or transfer funds on deposit with the financial institutions where the company held accounts.
Mangum was audited for income that had been reported in 2011, 2012 and 2013 and in March of 2017, the tax commission mailed letters informing him of his potential tax obligations in connection with that audit.
The letters told Mangum that if he did not respond the tax commission would assess state income
taxes against him based upon the available information.
Mangum did not respond or file tax returns.
According to the documents, bank records from Jersey Consulting LLC show that between 2015 and 20l7, Mangum used Jersey Consulting LLC credit cards and checks to purchase tens of thousands of dollars of items for personal use such as vehicles, a travel trailer, and payments toward a large home.
Mangum allegedly also withdrew cash from the company accounts. Neither Mangum nor Jersey Consulting LLC reported this income to the tax commission.
Bank records also show Tager, the owner and sole owner of the company, used credit cards and checks for extensive, unreported personal expenditures and cash withdrawals during the same period as Mangum.
Bank records show that $8,412,923 was deposited into Jersey Consulting LLC’s accounts from 20l4 through 2017 and Trager used Jersey Consulting LLC credit cards and checks to make millions of dollars in personal expenditures, including withdrawing cash, during those years.
The tax obligation for that amount of money is approximately $272,000.
The documents state the wages that Jersey Consulting LLC reported it paid to Tager from 2015 to 2017 is only a small portion of the personal income that Trager took from the business during those years.
Bank records indicate that at least two other employees were using the company to conceal personal income in a similar manner. Jersey Consulting LLC only reported their wages but not their personal expenditures and withdrawals from the accounts.
Documents state the failure to report personal income to the tax commission for both Tager and Mangum is not an oversight, but part of an “intentional scheme perpetrated by Tager and others who were associated with Jersey Consulting LLC”.
Mangum was booked into the Salt Lake County Jail but has since been released on $50,000 bond. There is still an active arrest warrant for Tager who has not been arrested.