Former Jersey Shore star and Dancing With the Stars contestant Mike "The Situation" Sorrentino, along with his brother Marc, were indicted today and charged with conspiracy to defraud the federal government and for filing false tax returns from 2010 to 2013. The brothers pleaded not guilty to the charges before being released on $250,000 bail.
The brothers are accused of underreporting their income in tax filings, as well as claiming millions in personal purchases (clothes, cars) as business expenses. A large portion of the disputed income—$8.9 million between 2010 and 2012—was made from personal appearances made by the Situation. From the Los Angeles Times:
Mike Sorrentino's appearance fee for nightclub openings and other events ranges from $1,500 to $48,000, according to court documents, but the two failed to report the income, according to the indictment.
The brothers also reportedly moved money between two limited liability corporations, Situation Nation and MPS Entertainment, instead of reporting it as income, according to court filings.
"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," U.S. Attorney Paul Fishman said today.
According to the seven-count indictment, Mike Sorrentino faces up to 11 years in prison and $600,000 in fines; Marc Sorrentino faces up to 14 years in prison, owing to three additional charges (for filing false tax returns).
"The charges are fiction. Marc has spent the better part of a year explaining that to the government. What's worse is that the government is relying on the word of a disgraced accountant who is a proven liar," Christopher Adams, the brother's lawyer, said.
The two are scheduled for arraignment Oct. 6.
[Image via AP]