Did injuries sustained by a Michigan drag racer in a non-competition car crash seven years ago contribute to his involvement in an alleged $80 million tax fraud case?
That's the question that everyone involved in the case, but particularly Evan Knoll's attorney, hopes will be answered by a court-ordered psychological evaluation.
The exam will determine whether Knoll, who's charged with filing false tax refunds that bilked the federal government out of more than $80 million, can assist in his defense. Knoll is expected to be in custody at a federal facility for several months while the examination is conducted.
Knoll's defense lawyer Paul Vlachos also believes that the brain injury in 2004 raises questions as to his client's decision-making capabilities at the times when some of the charges he is facing allegedly occurred.
Knoll owned General Sales and Service Inc. in Decatur, Mich., and did business as Torco Racing Fuels Inc., Knoll Gas, Knoll Gas Motorsports Inc., EWK, LLC and eRaceFuels Inc.
Photo courtesy Torco Race Fuels
Federal prosecutors allege that that between February 1999 and February 2008, Knoll's company filed claims for refunds of more than $106 million in federal gasoline excise taxes. High-octane racing fuel is exempt from the federal gasoline excise tax.
Because of that exemption, the IRS "paid out more than $80 million in excise tax refunds" to Knoll's company, according to an affidavit filed in support of the criminal complaint.
Knolll then allegedly used that tax refund money to help him qualify for more money, this time via large loans from a local bank. In connection with those loans, Knoll also is facing bank fraud charges.
Hat tip to @Taxdotcom
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