Lake Orion Man Must Pay IRS $80,000 After Lying On Tax Returns: Department Of Justice

LAKE ORION, MI — A former Lake Orion man was sentenced to 36 months in prison and must pay the Internal Revenue Service more than $80,000 in restitution after filing false tax returns and lying to a bankruptcy court and to the tax division of the U.S. Department of Justice, according to authorities.

Donald Stanley LaVigne did not report insurance commissions and other income on returns he filed with the IRS for 2013-19, the justice department said in a news release, adding he falsely claimed that the commissions were not income.

LaVigne filed for bankruptcy in 2018 but did not disclose the IRS as a creditor, despite owing the agency five years of taxes, according to authorities, who said LaVigne also understated his income for 2016 and 2017.

When he learned he was the target of a federal investigation, he told the tax division that his bankruptcy attorney reviewed his 2017 income tax return and advised that it was accurate, but the attorney testified at trial that he never said such a thing, according to authorities.

LaVigne was convicted in February and sentenced Tuesday, according to authorities, who added that in addition to prison time and restitution, he must serve two years of supervised release.