The indictment alleges Weichman, who operated an accounting firm and a medical billing firm, obtained more the $3 million from a local bank by obtaining money from his physician clients' bank accounts, and secured lines of credit in a client's name without that person's knowledge. It is claimed proceeds went to pay debts owed to casinos, among other uses.
Weichman is further charged with causing a second bank to renew a $355,133.68 term loan by failing to tell the institution he owed the IRS about $2 million in back taxes. Prosecutors also accused the accountant of hiding assets from his creditors and a bankruptcy trustee in a personal Chapter 11 bankruptcy. Weichman, but not his CPA firm, filed for Chapter 11 protection on Oct. 16, 2008.
Hundreds of thousands of dollars paid to area casinos as well as tens of thousands of dollars in credit card payments Weichman made for the purchase of items such as cigars, luxury handbags, sports memorabilia, and cruises, were allegedly hidden.
There were also charges of money laundering, alleging hundreds of thousands of dollars in criminally derived property. Also, Weichman is charged with instructing firm employees to impersonate owners of clients' IRA accountants when contacting brokerage firms and also faxed requests to brokerage offices in San Diego, Calif., and St. Louis Mo. The indictments allege this money was also redirected by Weichman for personal uses, including the payment of gambling debts.
The accountant is also charged with filing five false income tax returns from approximately August 2009 through Oct. 15, 2013.
