The Division of Criminal Justice Financial & Computer Crimes Bureau obtained a 14-count state grand jury indictment charging Wayne Dunich Kolb, 47, of Saddle River, his tax preparation service, Dunich-Kolb, LLC, and a consulting firm he operates called Jadran Services Corp. The indictment alleges that from January 2003 to January 2009, Dunich Kolb stole 56 checks totaling $129,278 that clients wrote to pay business sales taxes to the State of New Jersey; seven checks totaling $7,151 that clients wrote to pay payroll withholding taxes to the State of New York; and 22 checks totaling $53,358 that clients wrote to pay federal payroll withholding taxes to the Internal Revenue Service. He allegedly deposited the checks into bank accounts he maintained.

Dunich Kolb was arrested this morning at his home by detectives of the Division of Criminal Justice. The indictment was returned on Feb. 29 but sealed until today’s arrest. Dunich Kolb is being lodged in the Mercer County Jail with bail set at $200,000.

The indictment stems from a joint investigation by the Division of Taxation Office of Criminal Investigation and the Division of Criminal Justice Financial & Computer Crimes Bureau. Dunich Kolb allegedly concealed his theft of the tax payments by either failing to file tax returns for the clients or filing returns falsely indicating the businesses owed no taxes. He is charged with one count of second-degree theft by failure to make required disposition of property received for the New Jersey checks, and two counts of third-degree theft by failure to make required disposition of property received for the New York and IRS checks. He is also charged with money laundering and misconduct by a corporate official, both in the second degree.

“Time after time, this defendant allegedly stole from small business owners who entrusted their tax payments to him, covering his tracks by falsifying their tax returns or not filing their returns at all,” said Attorney General Chiesa. “We allege that he diverted the funds to support his lavish lifestyle, which included a luxury home, high-end vehicles and extensive travel.”

“When a person involved in the financial services industry, such as Dunich Kolb, engages in the type of fraud alleged in this indictment, the loss to victims can be extensive,” said Stephen J. Taylor, Director of the Division of Criminal Justice. “We have made it a priority to investigate and prosecute white collar crime, including crimes by accountants, lawyers, and mortgage or investment brokers.”

“The integrity of tax professionals is a cornerstone of our system of voluntary tax compliance. We treat any evidence that a professional has put his or her interests ahead of those of his or her clients and the community with the utmost seriousness,” said State Treasurer Andrew Sidamon-Eristoff. “One of the missions of Treasury’s Office of Criminal Investigation is to pursue any evidence of misconduct in this arena aggressively.”

In addition to the charges related to the alleged stolen checks, Dunich Kolb is charged with five counts of failure to file a New Jersey gross income tax return, a third-degree offense, for failing to file personal tax returns with the State of New Jersey for tax years 2006 through 2010. He is charged with four counts of third-degree theft by deception for allegedly filing applications for the New Jersey Homestead Rebate in which he fraudulently understated his annual income in order to qualify to collect a rebate of $2,000 for each of the years 2006, 2007, 2008 and 2009.

The case was presented to the state grand jury by Deputy Attorney General Denise Grugan of the Division of Criminal Justice Financial & Computer Crimes Bureau. The investigation was conducted by Auditors Kevin Curry and Debra Lewaine of the Division of Taxation’s Office of Criminal Investigation, and Deputy Attorney General Grugan.

The investigation began when the Division of Taxation conducted a compliance audit of a small business that hired Dunich Kolb to prepare its New Jersey tax returns. The audit revealed that Dunich Kolb allegedly diverted sales tax payments from the business that were intended for the State of New Jersey into a bank account that he maintained and controlled. Further investigation revealed additional tax payment checks from various clients that were allegedly deposited by Dunich Kolb into multiple bank accounts that he maintained for Dunich Kolb, LLC. The Division of Taxation referred the case to the Division of Criminal Justice.

The investigation revealed that Dunich Kolb told clients to send their tax payments to him, and he represented that he would forward the payment to the state or federal government along with the client’s tax return. After Dunich Kolb allegedly stole their checks, diverting the funds into his bank accounts, some clients received delinquency notices from the government. They reported that they alerted Dunich Kolb, who allegedly told them he would take care of the issue.

In 1996, the New Jersey State Board of Accountancy obtained a court order requiring Dunich Kolb to cease and desist from holding himself out to the public as a certified public accountant because he did not have a CPA license. Despite the court order, he continued to present himself as a certified public accountant specializing in the area of tax planning for small businesses.

Second-degree crimes carry a sentence of five to 10 years in state prison and a fine of up to $150,000, while third-degree crimes carry a sentence of three to five years in prison and a fine of up to $15,000. The second-degree money laundering charge carries an enhanced fine of up to $500,000, and an anti-money laundering profiteering penalty of up to $250,000. The indictment is merely an accusation and the defendants are presumed innocent until proven guilty.

The indictment was handed up to Superior Court Judge Thomas W. Sumners Jr. in Mercer County, who assigned the case to Bergen County, where the defendants will be ordered to appear in court at a later date to answer the charges. A copy of the indictment is posted with this release at www.njpublicsafety.com.

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