Ohio dentists plead guilty to conspiracy, tax evasion

Two Ohio dentists charged with tax evasion and conspiracy to defraud the Internal Revenue Service (IRS) in July 2009 have pleaded guilty.

Bradley Brennecke, D.D.S., of Pleasant Plain, who operated Goshen Family Dentistry, and Bruce Mrusek, D.D.S., of Maineville, who ran Wilmington Dental Management Services, pleaded guilty to conspiracy and tax evasion charges before District Court Judge Michael R. Barrett in Cincinnati.

Drs. Mrusek and Brennecke were scheduled to begin trial on Jan. 11, 2010. However, both defendants failed to appear in court and were subsequently arrested.

According to admissions made by the defendants at the plea hearing, Dr. Brennecke failed to pay taxes for 1998, 2002, 2003, and 2004. Dr. Mrusek evaded his 2002, 2003 and 2004 taxes by transferring his assets to his wife's name, sent bogus documents to the IRS that purported to pay his tax liabilities, used a trust to pay personal expenses, and filed false personal tax returns.

Drs. Brennecke and Mrusek also admitted to conspiring to defraud the IRS, beginning around the time that the IRS initiated civil audits of each of them. They assisted each other in the mailing of various fraudulent documents to the IRS and U.S. Treasury Department. In addition, Dr. Brennecke assisted Dr. Mrusek in the transfer of assets out of Dr. Mrusek's name.

For each defendant, the total attempted tax loss was between $400,000 and $1 million.

Judge Barrett has not yet set a sentencing date. Both men face a maximum term of 10 years in prison and a maximum fine of $500,000.