A Kansas man who lied to the IRS about his worth has been ordered to pay more than $8.4 million in restitution and spend five years in federal prison.
David G. Pflum, 71, of St. Marys, claimed on Internal Revenue Service documents that he had less than $475 in assets and a monthly income of $470, when in fact he owned more than $2 million in real estate and made in excess of $16,000 a month, U.S. Attorney Tom Beall said in a news release. A jury found him guilty in January of one count each of tax evasion and obstruction.
Prosecutors say he encouraged his renters, buyers and others who owed him money to ignore IRS collection efforts. He is the owner of Coil Springs Specialties, which designs and manufactures aftermarket automotive parts, according to the company’s website.
Pflum was sentenced Thursday in federal court, according to the news release. St Marys is in Pottawatomie and Wabaunsee counties, about 28 miles north and west of Topeka.