News Summary
Phillip Mak, a businessman from Jacksonville, faces serious charges including tax evasion and fraudulent asset transfers. The federal indictment has shocked the local business community as Mak allegedly amassed over $10 million without paying federal taxes. The ongoing investigation unveils large cash transfers and the use of nominee entities to shield assets. If convicted, Mak could face significant prison time, serving as a reminder of the serious consequences of tax fraud.
Jacksonville Businessman Faces Serious Charges
Jacksonville, Florida – In a startling turn of events, local businessman Phillip Mak has found himself in hot water after being indicted by a federal grand jury. The indictment, which was announced this past Wednesday, has sent shockwaves through the Jacksonville business community. Mak is facing some hefty charges, including tax evasion and making fraudulent asset transfers.
The Numbers Don’t Add Up
Phillip Mak is best known as the President of Fairway Action Inc, and it appears he’s been significantly raking in the cash—earning around $10.3 million from 2008 to 2020. However, what’s particularly eyebrow-raising is that during this period, he allegedly didn’t pay a single penny in federal taxes.
According to the Internal Revenue Service (IRS), Mak has stacked up about $1.92 million in unpaid taxes, penalties, and interest, specifically for the tax years of 2008, 2009, 2012-2015, and 2019-2020. It gets even more peculiar: he reportedly filed tax returns for only two of those years. What’s going on here?
Transferring Wealth, Dodging Taxes
Instead of addressing his tax obligations, Mak is accused of transferring a jaw-dropping $1 million in cash to the bank accounts of his domestic partner. Like a plot twist from a thriller novel, things took another unexpected turn after he was interviewed by IRS investigators in 2020. Allegedly, Mak transferred ownership of his Neptune Beach home to his partner’s trust shortly afterward.
But that’s not all! In a seemingly calculated move, Mak also created what is being described as a nominee entity. With this new setup, he reportedly started depositing his income into a bank account associated with this entity, effectively trying to shield his assets from scrutiny. The IRS claims that his actions have caused a tax loss exceeding $1.92 million.
The Legal Consequences
So, what’s at stake for Mak? If convicted of tax evasion, he could face a maximum sentence of up to five years in prison. In addition, for each count of failure to file a tax return and failure to pay taxes, he could be looking at up to one year in prison. The final say on his sentence will come from a federal district court judge, who will consider U.S. Sentencing Guidelines and various other factors.
Ongoing Investigation
The case is still unfolding, and investigation efforts are continuing. Prosecutors from the Tax Division alongside the U.S. Attorney’s Office are actively working on this high-profile case. It’s important to remember that an indictment is merely an allegation; individuals like Mak are considered innocent until proven guilty in a court of law.
What This Means for the Community
For residents of Jacksonville, this case serves as a reminder of the complexities of tax regulations and the serious consequences that can arise when individuals go astray. As the community watches this case develop, questions loom over the ethical responsibilities of business leaders and the impact of such actions on public trust.
This ongoing saga will certainly make for discussion in both local business circles and the broader Jacksonville community as everyone waits to see how the story unfolds.
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- Bloomberg Law: Jacksonville Man Indicted for Tax Evasion
- EIN News: Florida Businessman Indicted for Tax Evasion
- Jacksonville.com: Latitude 360 CEO Faces Tax Fraud
- News4Jax: Former Owner of Latitude 360 Indicted for Payroll Tax Fraud
- Vox: Fair Tax National Sales Tax Proposal
Author: STAFF HERE JACKSONVILLE WRITER
The JACKSONVILLE STAFF WRITER represents the experienced team at HEREJacksonville.com, your go-to source for actionable local news and information in Jacksonville, Duval County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Jacksonville Jazz Festival, Riverside Arts Market, and World of Nations Celebration. Our coverage extends to key organizations like the Jacksonville Chamber of Commerce and JAXUSA Partnership, plus leading businesses in logistics, healthcare, and entertainment that power the local economy such as CSX Corporation, Baptist Health, and VyStar Credit Union. As part of the broader HERE network, including HEREOrlando.com, HEREStPetersburg.com, HERETallahassee.com, and HERETampa.com, we provide comprehensive, credible insights into Florida's dynamic landscape.
