Florida Businessman Sentenced to Prison for Evading $3.7 Million in Taxes

Jacksonville, FL - A Jacksonville businessman was sentenced today to 22 months in prison for evading millions of dollars in federal income taxes.

According to court documents and statements made in court, Phillip Mak, a sales representative, earned more than $10 million during the years 2008 through 2020. Mak owed more than $3.7 million in federal taxes on that income but did not pay them when required to do so. The IRS sent notices to Mak reminding him of his obligation to pay taxes and eventually filed a Notice of Federal Tax Lien against his property. Nevertheless, by the end of 2021, Mak still had not paid any federal income tax for the last 13 years.

In fact, Mak took steps to move his assets out of the reach of the IRS. Between 2019 and 2021, Mak transferred $1 million to his domestic partner instead of paying taxes to the IRS. He also transferred ownership of his personal residence to a trust created and controlled by his domestic partner. Finally, he created a corporate entity and deposited his personal income into the corporate entity's bank account.

"Tax evasion isn't financial strategy-it's a deliberate choice with predictable consequences," said Ron Loecker, Special Agent in Charge, IRS Criminal Investigation, Florida Field Office. "Evading your true tax obligation is not a harmless oversight-it's a serious violation of federal law. IRS Special Agents will follow the money and present the facts in court."

Mak pleaded guilty to one count of tax evasion. In addition to the prison sentence, Mak was sentenced to serve three years of supervised release and to pay approximately $3,751,485 in restitution to the United States.

U.S. Attorney for the Middle District of Florida Gregory W. Kehoe and Assistant Attorney General A. Tysen Duva of the Justice Department's Criminal Division made the announcement.

IRS Criminal Investigation investigated the case.

Assistant U.S. Attorney John Cannizzaro of the Middle District of Florida and Trial Attorneys Isaiah Boyd and Michael Jones of the Criminal Division's Tax Section prosecuted the case.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.