Saturday, October 10, 2015

Jail for Barsky family member in tax scheme


Jeffrey Barsky, 60, a member of the family that owns Barsky Diamonds on Jeweler’s Row, has been sentenced to a year in prison for under-reporting $779,177 in gross income on his personal tax returns over several years.

Those charges were not in connection with the family’s business. However, Barsky was also charged in connection with an attempt to avoid filing paperwork for receiving more than $10,000 in cash in a jewelry sale while he was at the store on one occasion, court filings show. Under federal law, any cash transaction of $10,000 or more must be reported separately.

Barsky was indicted in March 2012 by a federal grand jury in Philadelphia for under-reporting gross income from 2005 through 2008. Between those years, he reported income of $294,262 on 1040 forms sent the IRS. His real gross income: $1.07 million, the indictment states.

The IRS said the $779,000 difference equated to $234,105 in losses to the federal government.

Barsky, who is listed on his LinkedIn as a general manager at Barsky Diamonds, pleaded guilty in January. He was sentenced this week two one year and one day of incarceration, and ordered to pay $259,105 in restitution and fines. It is not clear if he was still employed at the jewelry store.

His son, Nathan, 37, was sentenced last week for a similar scheme in which the IRS claims it was defrauded of $234,105 in payments owed. His sentencing information was sealed and unavailable.

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