UPDATE: Mike “The Situation” will Plead Guilty to Tax Fraud Tomorrow

image: usatoday

Gotham City Esq previously reported on the federal charges pending against Mike “The Situation” Sorrentino.  Mike, along with his brother, will answer to multiple charges of tax violations. This includes conspiracy to defraud the U.S., filing false tax returns, tax evasion, and structuring to evade reporting requirements, among other things. This comes at a bad time for Mike as MTV prepares to reunite the Jersey Shore cast in a new show. (watch video of cast member Pauly D showing concern for Mike)

Voicing a claim similar to a host of other celebrities Mike’s brother asserts that he hired a bad accountant who failed him. This could be true. Lots of celebrities find themselves in hot water because of bad business relationships. When in tax trouble Steven Baldwin claimed that he received bad advice from lawyers and accountants. Also, Nicholas Cage blamed his tax debt on his former business manager. I cannot stress enough how important it is for celebrities to have a competent tax attorney on their team. Celebrities can afford to hire the best tax attorney who also is a CPA.

In Mike’s case, it’s a little difficult for him to blame it all on his accountant. According to U.S. Attorney Paul J. Fishman, the brothers claimed costly clothes and cars as business expenses and funneled company money into personal accounts. The superseding indictment filed in 2017 says that after being served with subpoenas seeking records, Mike’s brother falsified records to reclassify taxable payments as business deductions. Mike also made a series of bank deposits under $10,000 to different bank accounts to avoid reporting requirements.

Uncle Sam always gets his money

Initially, Mike pleaded not guilty but he now agreed to plead guilty. It is clear that this is a situation where Mike wouldn’t win his case, so he obviously made the right choice. His scheduled court date is Friday, January 19, at 11 a.m.

Although Mike faces up to 15 years in prison, his plea deal will result in much less time. He will likely have to pay restitution to the IRS, have supervised probation, and maybe do a few months of jail time. Reality star Teresa Giudice only served 11 months in prison after pleading guilty to tax fraud. Singer Lauren Hill spent 3 months in prison after pleading guilty to owing $2.3 million in tax debt.

It’s always the same cycle. Initially, the celebrity denies wrongdoing and says they will fight the charge. They then realize the evidence against them and strength of Uncle Sam. They later plead guilty. Ladies and gentlemen, Uncle Sam will get his money so you might as well be honest upfront.


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