Jersey Shore Star In Court, Accused Of Cheating Taxes On $8.9 Million In Income

“Jersey Shore” television personality Michael “The Situation” Sorrentino and his brother, Marc Sorrentino, are expected to appear in federal court Wednesday to face an indictment alleging they did not properly pay taxes on $8.9 million in income, U.S. Attorney Paul J. Fishman announced.

The income was money Michael Sorrentino received from promotional activities.

Michael Sorrentino and his brother, Marc Sorrentino, are 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, according to the U.S. Attorney’s Office.

Michael “The Situation” Sorrentino opened a Boca Tanning Club franchise earlier this year in Middletown Plaza on Route 35 in the township. His family was supposed to own and operate the tanning salon and has plans to open locations in Freehold and Manalapan this year.

Michael Sorrentino faces an additional count for allegedly failing to file a tax return for 2011. The defendants are expected to surrender to special agents of IRS-Criminal Investigation and United States Marshals prior to their court appearance before U.S. Magistrate Judge Steven C. Mannion in Newark federal court, according to the U.S. Attorney’s Office.

According to the indictment, Michael and Marc Sorrentino filed false tax returns that incorrectly reported millions made from promotions and appearances,” said 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.”

Rather than living “in reality” and reporting their true income, Michael Sorrentino and his brother, Marc, created the illusion that they earned less income by filing false and fraudulent tax returns, stated Jonathan D. Larsen, Acting Special Agent in Charge, IRS-Criminal Investigation, Newark Field Office.

“No matter what your occupation or status in life, if you attempt to cheat on your taxes for personal financial gain, you face real consequences including criminal prosecution and a possible prison sentence,” he said.

Both Michael and Mark Sorrentino are expected to be arraigned on the indictment before U.S. District Judge Susan D. Wigenton in Newark federal court on Oct. 6, 2014.

According to the U.S. Attorney’s Office:

“Michael Sorrentino is a reality television personality who first gained fame on “The Jersey Shore,” which appeared on the MTV network. Marc Sorrentino is Michael’s brother and manager. The pair conspired to fail to pay all federal income tax owed on approximately $8.9 million earned by Michael Sorrentino between 2010 and 2012. This income was largely received by two companies controlled by the brothers: MPS Entertainment, LLC and Situation Nation, Inc.

“As part of the conspiracy, the brothers submitted or caused to be submitted to the IRS false documents which understated the gross receipts received by the brothers and the two companies. The brothers also submitted false personal tax returns which failed to report all of the income they received, and Michael failed to file a personal tax return in 2011, despite earning $1,995,757 that year.

“As part of the conspiracy, the brothers also fraudulently claimed millions of dollars in personal expenses as business expenses, including payments for high-end vehicles and clothing, personal grooming expenses, and distributions – or direct payments – from the businesses to personal bank accounts.

“The conspiracy and filing false tax return counts each carry a maximum potential penalty of three years in prison and a $250,000 fine. The count charging Michael Sorrentino with failing to file a tax return carries a maximum potential penalty of one year in prison and a $100,000 fine.”