United States Attorney David Metcalf has announced that Rodney Ermel, a 71-year-old resident of Colorado, has pled guilty to charges of tax evasion and conspiracy to defraud the United States. The plea was entered before United States District Court Judge Mark Kearney in Philadelphia.
Ermel ran an accounting firm based in Colorado and, alongside co-defendant Kenneth Bacon, provided accounting and tax preparation services. These services were rendered to co-defendant Joseph LaForte, his wife and co-defendant Lisa McElhone, and their respective business entities. The court documents reveal that Ermel worked with LaForte, Bacon, and others to conceal approximately $20 million in income.
The concealment was achieved through fraudulent accounting practices, such as creating false shareholder loans and "bad debt" deductions. Ermel filed tax returns during 2016 to 2018, underreporting taxable income by over $20 million, resulting in a tax loss exceeding $8 million for the United States.
This guilty plea makes Ermel the fourth individual to admit to criminal actions linked to this tax scheme. The sentencing is slated for September 3.
Investigations are ongoing with involvement from the FBI, IRS Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General.
The case prosecution is being led by Assistant U.S. Attorneys Matthew Newcomer and John J. Boscia from the Eastern District of Pennsylvania, along with Trial Attorney Ezra Spiro from the Justice Department’s Tax Division.