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Kenmore man pleads guilty to mail fraud and tax evasion

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Posted at 7:51 PM, Jan 17, 2023
and last updated 2023-01-17 19:51:09-05

BUFFALO, N.Y. (WKBW) — U.S. Attorney Trini E. Ross announced Tuesday that a Kenmore man pleaded guilty to mail fraud and tax evasion, charges that carry a maximum penalty of 20 years in prison and a $250,000 fine.

In January 2017, the defendant, 56-year-old Michael MacPherson, solicited someone from Kansas to invest in a bulk cigarette deal and told this person that he had an agreement with a Native American tribe in NYS to purchase cigarettes at a discounted rate, and later sell them at a significant markup.

MacPherson told this individual that in exchange for a $75,000 investment, he would receive a 15 to 20% return within 90 to 120 days.

The individual complied and sent a check payable to Paget Trust, LLC, a company which MacPherson primarily operated his business activities through.

Instead of using the check for cigarettes, MacPherson used it to make payments to the Niagara Falls Country Club and Canisius High School, as well as airline flights, hotels, car rentals, utilities, retail purchases, gas, clothing, groceries, and restaurants.

In December 2017, MacPherson contacted the same individual to solicit a $20,000 investment for the purchase of carbon fiber, telling him that he would receive his principal investment and a 30% return in 180 days.

The individual sent another check for $20,000, and MacPherson, again, did not use the money as stated. The check went towards paying a defaulted business loan, cash withdrawals, airline flights, and much more.

Between 2015 and April 15, 2019, MacPherson attempted to evade income taxes for both 2015 and 2017. In 2015, he failed to file a federal income tax return, despite receiving over $250,000 in gross income. In 2017, he failed to report over $80,000 in gross business receipts. The amount of taxes loss to the US was estimated to be $93,815.

MacPherson's sentencing is scheduled for May 25, 2023.