Income tax

Man charged with tax evasion in Brown County

GREEN BAY, Wis. (WBAY) – A Portage County man has been charged in a Brown County tax evasion case.

A criminal complaint obtained by Action 2 News shows Elton J. Schenk, 46, Custer, being charged with fraud/submitting a tax return or obtaining a refund with fraudulent intent. This is a felony charge that carries a six-year prison sentence and/or a $10,000 fine.

The charge was filed March 16 in Brown County Court because the alleged crimes occurred while the defendant was living in Green Bay.

The case was investigated by the Wisconsin Department of Revenue’s Bureau of Criminal Investigations. They were warned by a listener.

The complaint alleges that Schenk invented bogus companies. Investigators reviewed tax returns filed by Schenk and his then-wife for 2014, 2015 and 2016. Each year included a federal Schedule C for a business that did not exist. The alleged bogus Federal Schedule C reduced the amount of Wisconsin income tax owed.

“In addition to the bogus companies, Schenk knowingly reported false medical and dental expense amounts on his 2014 and 2015 federal Schedule A. These amounts were used to calculate his Wisconsin itemized deduction credit for 2014 and 2015. Schenk has also knowingly inflated the amount of charitable contributions reported on their 2014, 2015, and 2016 Federal Schedule A. These amounts were also used to calculate their Wisconsin itemized deduction credit for 2014, 2015, and 2016,” the complaint states.

From 2011 to 2017, Schenk worked for a financial firm specializing in high-risk loans and tax preparation.

The complaint says Schenk admitted to preparing his joint tax returns for 2014, 2015 and 2016, as well as those of his then-wife, including federal Schedule C and Schedule A.

He also alleges that the returns evaded $4,970 in Wisconsin income tax.

Investigators say Schenk reported the bogus businesses and inflated medical/dental expenses to avoid paying taxes and fund a trip to Florida, buy iPads, clothes and pay bills.

An arraignment hearing is scheduled for May 26.

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