Business owner gets 5 years for tax fraud

March 4, 2010 11:48:55 AM PST
A north suburban businessman who federal investigators say failed to report more than $5.3 million of income over 10 years has been sentenced to serve five years in prison.Authorities say underreporting by Jon Darmstadter resulted in $2,365,594 in lost federal taxes between 1998 and 2007.

Darmstadter, 57, of Glencoe, was sentenced Wednesday and ordered to begin serving his sentence May 17. He was an executive of the Children's Beverage Group, Inc. in Northbrook, a federal release said.

Darmstadter must also pay restitution to the United States for the full amount of taxes and has already paid approximately $489,000, authorities said.

Darmstadter pleaded guilty last summer to one count of tax evasion and one count of filing a false federal income tax return, and he faced a maximum penalty of eight years in prison. In pleading guilty, federal investigators say, he admitted that he filed false tax returns from 1998 through 2003, and that he failed to file tax returns for the years 2004 through 2007.