A Colorado breeder of Arabian horses stands accused of tax evasion, with authorities alleging he did not pay taxes and failed to report substantial income from his breeding businesses.
Nikitis A. Mangeris, 69, of Berthoud, was arrested on January 18 at his home for income tax evasion.
The United States Attorney’s Office and IRS Criminal Investigation unit said Mangeris was indicted by a federal grand jury in Denver on January 9, for tax evasion and aiding and abetting in tax evasion. The indictment remained sealed until his arrest and subsequent initial appearance.
Mangeris appeared in US District Court in Denver on the day he was arrested. He was released on a $US10,000 unsecured personal appearance bond. He is scheduled to appear in court this Thursday.
Authorities said Mangeris operated the Les Beaux Chevaux and Tenet Investment Group businesses, each of which held Arabian horses and provided horse breeding services.
About 12 of the horses were registered with the Arabian Horse Association in the name of Les Beaux Chevaux and about two of the horses were registered with the Arabian Horse Association in the name of Tenet Investment Group.
Mangeris kept and cared for, at his residence, some of the horses, including a breeding stallion known as MHR Nobility.
Authorities said Mangeris had not filed a US Individual Income Tax Return, Internal Revenue Service Form 1040, for calendar years 1997-2003, 2005-2007, or 2010.
Beginning in 2002, the IRS conducted an audit of Mangeris for 1997-1999. Early in 2004, Mangeris signed an IRS Form 4549, consenting to the IRS assessment and collection of back taxes, penalties, and interest from him for calendar years 1997, 1998, and 1999 for amounts totaling about $US850,235.77, $US18,349.27, and $US23,370.24, respectively.
Despite agreeing to these back taxes, penalties, and interest, Mangeris has evaded payment of these amounts, the authorities said.
In or around 2004 and 2007, he filed IRS forms which failed to list all income, assets, liabilities and other information. Around 2005, he filed a form for 2004 which failed to report substantial amounts of income from his horse breeding businesses and receipts from semen sales.
Furthermore, he is alleged to have directed third-party buyers to make payments for the purchase of semen and offspring derived from his businesses’ horses to other individuals and entities holding bank accounts he controlled and paid his own personal expenses through such accounts.
“With tax season around the corner, this indictment should serve as a reminder that anyone who evades paying their taxes will be held criminally accountable,” said US Attorney John Walsh.
“As tax filing season approaches, this is a reminder that all taxpayers should file complete and accurate tax returns; all income regardless of the source is taxable,” said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.
Mangeris was charged with one count of income tax evasion and aiding and abetting. If convicted, he faces not more than five years in federal prison, and a fine of up to $US250,000.
This case was investigated by agents with IRS-Criminal Investigation. The case is being prosecuted by Assistant US Attorney Kenneth Harmon and Special Assistant US Attorney Kevin Sweeney, a trial attorney from the Justice Department’s Tax Division.