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CALIFORNIA DOCTOR UNDERGOES TAXECTOMY

March 02, 2006

A physician who owned 11 phycscial therapy clinics was sentenced to 24 months in federal prison for doing the Leona Helmsley thing with his business income:

The U.S. attorney's office said Small paid a substantial portion of his personal expenses through the checking accounts of the physical therapy clinics and fraudulently coded the payments as business expenses on the checking account ledgers of those clinics.

Prosecutors said Small used corporate funds to pay for non-deductible medical expenses for himself and friends and also used corporate funds to extensively remodel his personal residence in Lafayette.

They said he spent corporate funds on a swimming pool, iron fencing, extensive deck work and landscaping, architecture services, personal automobile maintenance and gasoline, food, clothes, home furnishings and travel, including personal travel to Hawaii, England, Ireland, Australia, Las Vegas and Kenya.

Leona got her prison time for similarly treating personal expenses as business deductions. I think the Kenya thing must be what put Mr. Small over the top.

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