Lakewood man underreports $2 million in income

Posted at 3:11 PM, Apr 19, 2016
and last updated 2016-04-19 15:11:30-04

A Lakewood man was charged in federal court for taking improper write-offs and not reporting more than $2 million in taxable income, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.

Thomas G. Klocker, 47, was charged with four counts of tax evasion. The counts covered the tax years of 2007 through 2010.

“Nobody likes paying taxes, but we all have to pay our fair share, which includes being honest about deductions and expenses,” Rendon said. “Those who underreport their income and take improper deductions will be held accountable.”

“As this tax filling season comes to a close, we are reminded of our collective duty to accurately file and pay our taxes,” Enstrom said. “Those who willfully abscond from this duty will be pursued and brought to justice.”

Klocker was the sole shareholder and operator of All Metal Sales in Westlake. He also operated TT Charter Leasing, which was chartered the luxury yacht “Tommy Time," according to court documents.

Klocker diverted corporate funds from AMS for his own use to benefit his personal lifestyle and avoid personal income liabilities between 2007 and 2010, officials stated.

Authorities said Klocker diverted funds from AMS to construct a waterfront residence in Lakewood and to maintain his 1968 Sunseeker yacht. He also paid for luxury travel and to make cash withdrawals. He reported big business losses from the operating costs and expenses  from the personal use of the TT Charter Leasing yacht.

He also misrepresented his personal expenses entered into AMS’ books and records by falsely describing them as legitimate business expenses, according to authorities. Klocker also provided false information to his tax-return preparers about expenses he described as business-related which were, in fact, personal in nature – including luxury travel with his family.

According to authorities, Klocker underreported his taxable income by more than $2 million during tax years 2007, 2008, 2009 and 2010. He owed at least an additional $611,000 in taxes for that period.

This case is being prosecuted by Assistant U.S. Attorney Robert J. Patton following an investigation by the Internal Revenue Service – Criminal Investigations, with assistance from the Federal Bureau of Investigation – Cleveland Field Office.