Florida Escort Service Owner Indicted For Allegedly Filing Fraudulent Corporate and Individual Income Tax Returns

            A Florida escort service owner has been charged in an indictment for allegedly filing fraudulent corporate and individual income tax returns. 

            Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.

            On December 19, Dennis Zarudny, 39, of Miami Beach, was charged in an eight count indictment with making and subscribing a false tax return, in violation of Title 26, United States Code, Section 7206(1), and aiding and abetting the filing of a false tax return, in violation of Title 26, United States Code, Section 7206(2).  If convicted, Zarudny faces a statutory maximum sentence of three years in prison for each count.  He also faces a period of supervised release, restitution and monetary penalties.

            According to the indictment, Zarudny owns Denzar, Inc., which does business as Elite Escort Service, and is located in Miami.  The indictment alleges that according to Denzar’s internet website, Denzar was a “prestigious escort agency providing 24 hour outcall escort services & adult entertainment for upscale gentlemen and couples in South Florida.”  The indictment further alleges that from 2011 through 2014 Zarudny filed with the IRS fraudulent corporate and personal income tax returns that underreported his business gross receipts and the income he earned from the business. 

            Mr. Greenberg commended the investigative efforts of IRS-CI.  This case is being prosecuted by Assistant United States Attorneys Joshua S. Rothstein and Trial Attorney Grace Albinson of the Tax Division.

            An indictment is only an accusation and a defendant is presumed innocent until proven guilty.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.