IRS not fooled by business scheme.
Robert Lee Bierman, 49, of Polk City, Iowa, was convicted of
conspiracy to defraud the Internal Revenue Service and three counts of filing false income taxreturns, announced United States Attorney Nicholas A. Klinefeldt.
The jury returned its verdicts on September 16, 2010, following a six-day trial and approximately seven hours of deliberations,
over the course of two days.
Bierman was President of two related corporations – Value Marketing, Inc., and East Central Publishing, Inc. – which published regional editions of Machinery and Equipment
Access, a monthly catalog that advertises heavy equipment and machinery.
The companies currently do business as Access Publishing, Inc., and are now based in Johnston, Iowa.
Beginning in 1997, Bierman and the companies’ accountant,Mark Terbeek, 52, of Des Moines, both of whom were shareholders in the corporations, began making large distributions
to themselves. The distributions were classified as “printing expenses” in the company’s books and records.
The companies then filed fraudulent corporate income tax returns, which deducted
these payments as expenses, and neither Bierman nor Terbeek reported the distributions as income on their personal income tax returns.
During a nine-year period, from 1997 until 2005,
the companies diverted more than $1.8 million in this manner, making payments to Bierman, Terbeek, and two other shareholders, who also were prosecuted for failing to disclose this
income on their individual income tax returns.