A former St. Charles Township man, who had been a part-owner of the Royal Fox Country Club, has been sentenced to federal prison for failing to pay nearly $1.3 million in federal income taxes and concealing business interests in his personal bankruptcy case, according to a statement from the U.S. Attorney’s Office in Chicago.
Dennis Weiss, 64, of South Elgin, pleaded guilty to one count each of filing a false federal income tax return and making false statements in a Chapter 7 bankruptcy petition. U.S. District Judge John Lee on Tuesday sentenced Weiss to 30 months in federal prison and ordered him to pay $296,643 in restitution to the Internal Revenue Service.
Weiss will begin his prison term in January, according to the statement. Weiss owned Custom Homes by D.R. Weiss Inc. and Reliable Home Solutions Inc., both formerly based in St. Charles, according to the statement. According to court documents, Weiss filed false individual federal income tax returns for 2005 through 2009, and failed to file corporate tax returns for both of his companies.
Between 2005 and 2009, Weiss paid personal expenses from Custom’s business bank account, accepted cash payments from Custom and Reliable customers, and failed to record the receipt of these funds on the corporations’ books, resulting in a federal tax loss of nearly $1.3 million, officials said.
When Weiss filed a personal bankruptcy petition in 2009, officials said he intentionally concealed the existence of Melrose Currency Exchange Inc., which he had owned for several years.
Court documents also show that Weiss falsely declared that he had no interest in any partnerships or joint ventures when, in fact, he held interests in three family held entities: Royal Fox Country Club LP, Royal Fox Country Club LP II and Weiss Private Equity LP.
Weiss’ false bankruptcy petition listed nearly $1.3 million in assets and $1.4 million in debts to about 43 trade creditors, officials said.
According to the bankruptcy filing, Weiss surrendered six properties, including his residence at 38W546 N. Lakeview Circle, St. Charles Township and five vacant lots – one in St. Charles, one near Lily Lake and three in Oswego.
Among the creditors listed were Platinum Plumbing of Elburn, to which he owed $3,700, and the former Valley Community Bank in St. Charles, to which he owed $4,100, bankruptcy documents show.