MJP –
The U.S. District Court for the Northern District of Texas issued permanent injunctions on Nov. 1 against Charles Dombek and The Optimal Financial Group LLC, prohibiting them from promoting tax plans that involve creating sham management companies, deducting personal expenses as business expenses, or assisting in setting up “captive” insurance companies.
The injunctions also bar Dombek, a licensed CPA, from preparing federal tax returns for anyone other than himself, and restrict Optimal from preparing federal tax returns that reflect these tax plans.
According to the department, Dombek served as manager and president of The Optimal Financial Group LLC. The documents allege that Dombek and Optimal promoted a nationwide tax scheme aimed at illegally reducing clients’ income tax liabilities.
Specifically, the complaint claims that Dombek and Optimal used sham management companies to improperly shift income to lower tax rates, defer taxable income, and classify personal expenses as false business deductions.
The government’s complaint describes Dombek as promoting himself as the “premier dental CPA” in the United States, allegedly to attract clients from the dental industry and beyond.
Documents assert that in promoting these schemes, Dombek and Optimal made knowingly false statements regarding the supposed tax benefits, despite being aware of or having reason to know the claims were inaccurate.
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The complaint further alleges that they prepared and signed tax returns for clients, incorporating these sham transactions, expenses, and deductions.
According to the complaint, the government estimates the potential harm to the U.S. Treasury from this scheme to be $10 million or more.
Notably, according to the department, Dombek and Optimal consented to entry of the injunctions.
