Accountant Charged in $140 G Tax Scam of Cancer Charity
BRONX, NEW YORK, AUGUST 15- District Attorney Robert T. Johnson announced the arrest and indictment of Joseph Junkovic on charges that the 47-year-old Certified Public Accountant evaded over $140,000 in personal income taxes owed to the State of New York. Junkovic has also been charged with falsifying personal income tax returns for another individual.
The Grand Jury indicted Junkovic on a total of 16 counts of criminal tax fraud in the second, third, and fourth degrees, repeated failure to file personal income tax returns, false personal income and earning tax returns, grand larceny in the fourth degree, offering a false instrument for filing in the first degree, and falsifying business records in the first degree. Junkovic is facing a maximum sentence of up to 15 years imprisonment if convicted of the top count in the indictment, criminal tax fraud in the second degree.
The charges in the indictment are merely accusations and the defendant is presumed innocent until and unless proven guilty.
Junkovic was arraigned before Acting State Supreme Court Justice Denis Boyle who set bail at $7,500 cash or $75,000 bond.
It is alleged that Junkovic operated both the not-for-profit Cancer Service Network (CSN) and JLJ Consulting, a financial services business, from his residence at 2348 Wickham Avenue, the Bronx. Junkovic, who was the sole shareholder of both entities, allegedly arranged for Cancer Service Network to pay JLJ Consulting hundreds of thousands of dollars for administrative and financial services. Since JLJ Consulting was formed as an S-Corporation, Junkovic was required to report those payments on his personal income tax returns. According to the indictment, Junkovic was aware of this obligation because of his training and years of experience as a Certified Public Accountant. The indictment, which covers tax years 2008 through 2011, alleges that Junkovic either failed to report all of his income or simply failed to file a tax return. Junkovic is also alleged to have falsified personal income tax returns for an employee.
Junkovic’s not-for-profit Cancer Service Network was contracted by the New York State Department of Health to provide referrals for cancer screening services for indigent patients. The tax issues that are alleged in the indictment came to light after a bank notified New York State officials regarding certain undisclosed issues with Junkovic’s accounts following an internal review by bank auditors.
In addition to these New York State charges filed by the Bronx County Grand Jury, Junkovic is also facing charges filed by the United States Attorney for the Southern District. It is alleged in the federal complaint that Junkovic fraudulently obtained federal funds for the Cancer Service Network through grants from the U.S. Department of Health and Human Services to the New York State Department of Health.