Texas Doctor Sentenced to Prison for Tax Evasion

Published 10:51 am Friday, November 19, 2021

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ST. PAUL, Minn. – A Texas doctor was sentenced to two years in prison and ordered to pay $857,127.24 in restitution for failing to pay income taxes for 10 years.

According to court documents, Mark B. Reimer, 69, is a physician who operated his own medical practice in Texas from 2003 through 2007 and then, from 2007 through 2015, worked as a physician for a private employer in Minnesota. From 2003 through 2012, Reimer earned an annual salary of more than $440,000. Reimer and his wife, Ana C. Reimer, 69, filed joint tax returns admitting that he had earned more than $4.3 million during that 10-year period, and that he owed more than $1.2 million in federal income taxes. In addition, Reimer owed a $20,000 personal penalty because he had failed to pay employment taxes arising out of his Texas medical practice between 2005 and 2007.

According to court documents, despite having the ability to pay them in full, Mark and Ana Reimer willfully evaded the payment of their tax liabilities. The defendants withdrew more than $337,000 in cash from bank accounts they controlled for the express purpose of preventing the IRS from collecting it. Instead of paying their tax liabilities, Mark and Ana Reimer transferred more than $353,000 to their four adult children and spent more than $251,000 on airline, furniture, and other retail purchases. In 2013 and again in 2015, the defendants jointly filed for bankruptcy for the sole purpose of evading the IRS. During the bankruptcy proceedings, the defendants falsely testified under oath that they had made no monetary transfers or gifts to their children prior to filing for bankruptcy, when, in fact, they had.

On January 13, 2021, the defendants each pleaded guilty to one count of tax evasion. Mark Reimer was sentenced to 24 months in prison, followed by one year of supervised release. Ana Reimer was sentenced to 24 months of probation. The defendants were jointly ordered to pay $857,127.24 in restitution.

Acting U.S. Attorney Charles J. Kovats made the announcement after Senior U.S. District Judge Paul A. Magnuson sentenced the defendant.

This case is the result of an investigation conducted by the IRS Criminal Investigation Division.

This case was prosecuted by Assistant U.S. Attorney David J. MacLaughlin.