Mike 'The Situation' Sorrentino News 2014: 'Jersey Shore' Star Charged with Tax Fraud, Pleads Not Guilty
The Situation, otherwise known as Mike Sorrentino, is in a bit of situation with the IRS.
The former reality TV star and tanning aficionado, along with his brother Marc Sorrentino, has been charged on seven counts of tax evasion and attempting to defraud the U.S. government. They have pleaded not guilty to the charges.
A seven-count indictment against the Sorrentino brothers was released on Wednesday, according to CBS New York. The U.S. Attorney's Office alleged the brothers failed to pay taxes on about $9 million earned over the last four years.
"According to the indictment, Michael and Marc Sorrentino filed false tax returns that incorrectly reported millions made from promotions and appearances," said U.S. Attorney Paul J. Fishman. "The brothers allegedly also claimed costly clothes and cars as business expenses and funneled company money into personal accounts. The law is absolutely clear: telling the truth to the IRS is not optional."
The "Jersey Shore" star and his brother appeared at the U.S. District Court in Newark on Thursday morning and pleaded not guilty to charges, according to the Star-Ledger. The indictment explains that Mike Sorrentino, 32, and his brother filed false tax returns between 2010 and 2012, claiming to have earned far less than what they did.
Following the premiere of "Jersey Shore," the brothers started a company called MPS Entertainment to cash in on The Situation's newfound popularity and fame. The Sorrentinos used MPS and another company, Situation Nation Inc., to profit from Mike Sorrentino's fame.
However, they failed to claim the two companies' income in their tax forms, explains the indictment, and did not include thousands of dollars earned by The Situation during appearances at clubs and events. Many of these were paid in cash and put in the brothers' bank accounts.
In an attempt to lie to the IRS, the brothers misled their accountants and inflated their business expenses.
"These false and/or inflated business expenses included, among other things, payments for several high-end vehicles, purchases of high-end clothing and personal grooming expenses that were disguised as legitimate business expenses," the indictment explains.
According to Asbury Park Press, the brothers were released on a $250,000 unsecured bond. They have been charged with one count of conspiracy to defraud the United States. Marc and Michael Sorrentino "also are charged with three and two counts, respectively, of filing false tax returns for 2010 through 2012."
If convicted, the brothers could face more than 11 years each in prison.
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