PHILADELPHIA, PA — Rodney Ermel, 71, of Colorado, entered a guilty plea on Monday, April 28, to charges of tax evasion and conspiracy to defraud the United States. The plea was made before United States District Court Judge Mark Kearney.
Court documents and statements provided during the hearing outline Ermel’s role as owner and manager of a Colorado-based accounting firm. Alongside co-defendant Kenneth Bacon, Ermel provided accounting and tax preparation services for Joseph LaForte, LaForte’s wife Lisa McElhone, and their associated business entities. Prosecutors alleged that Ermel participated in a scheme to conceal approximately $20 million in income using fraudulent accounting practices.
Tactics included fabricating shareholder loans and claiming false “bad debt” deductions. Between 2016 and 2018, Ermel knowingly filed tax returns that underreported taxable income by over $20 million. These actions resulted in a financial loss to the United States of more than $8 million.
Ermel is the fourth individual to plead guilty in connection with the scheme. Sentencing is scheduled for September 3, where Ermel could face significant penalties for his role in defrauding federal authorities.
Federal agencies, including the FBI, IRS Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General, have meticulously investigated the case. The matter is being prosecuted by Assistant U.S. Attorneys Matthew Newcomer and John J. Boscia from the Eastern District of Pennsylvania, alongside Justice Department Tax Division Trial Attorney Ezra Spiro.
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