Mall Manager Admits to Bankruptcy & Tax Fraud

The manager of Pin Oak Properties, which operated the Middletown Mall, has admitted to bankruptcy and tax fraud.

According to U.S. Attorney Bill Powell’s office, 59-year-old Dietrich Fansler pleaded guilty to one count of fraudulent concealment of bankruptcy estate assets and one count of willful failure to pay over tax.

Fansler file for Chapter 11 bankruptcy protection in June 2017, according to Powell’s office. between June 2017 and January 2018, Fansler collected rent from the tenants of the mall and was required to deposit that money into the debtor-in-processor account of Pin Oak Properties.

Fansler admitted to using around $225,000 of that collected rent for expenses unrelated to Pin Oak Properties and concealing it from the creditors of the bankruptcy estate.

Fansler also admitted to failing to pay the withheld income taxes from employees of Pin Oak Properties and another one of his companies, Villa Rentals, Inc, according to Powell’s office. He has also admitted that he did not pay personal income taxes for years 2009, 2010, 2012, and 2013. The total loss to the IRS is more than $880,000.

As a part of Fansler’s plea, he agreed to pay $225,000 in restitution to the bankruptcy trustee, as well as around $880,000 in restitution to the IRS.

Fansler faces up to five years in prison and a fine up to $250,000 for each count.

Assistant U.S. Attorney Jarod J. Douglas is prosecuting the cases on behalf of the government. The IRS investigated.

U.S. Magistrate Judge Michael John Aloi presided.

Source: https://www.wdtv.com/content/news/Middletown-Mall-Manager-admits-to-bankruptcy-and-tax-fraud-561803551.html

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