Florence doctor pleads guilty to filing false tax return

By: From staff reports | SCNOW
Published: January 13, 2009

A Florence emergency room doctor pleaded guilty to one count of filing a false tax return for the year 2000 on Tuesday, when he was scheduled to stand trial in Florence before U.S. District Court Judge R. Bryan Harwell.

Peter Zavell, 44, was indicted in August 2007 for conspiracy to impede the IRS and for filing false returns for years 2000 and 2001. According to the indictment, Zavell used the “Look Back” and “Look Forward” programs, marketed by Anderson Ark and Associates, to create fictitious entities and business transactions intended to eliminate his tax obligations. The tax loss relative to the scheme was $244,784.

According to the indictment, Zavell used the Look Back program to set up a sham partnership for the purpose of reporting false expenses and eliminating his individual tax liabilities. The indictment alleged he created a sham partnership with which his medical practice allegedly engaged in fictitious business contracts in order to generate false business expenses for his medical practice and substantially reduce the business tax obligations.

As part of the plea agreement, the government agreed to dismiss charges against his wife, 40-year-old Susan Zavell. The Zavells, who operated Heavenly Skin Medical Skin Solutions in Florence, had been charged in a three-count indictment with conspiracy to defraud the United States and filing false tax returns.

Harwell did not set a sentencing date for Zavell, who faces up to three years in prison and a fine of $250,000.

Assistant U.S. Attorney Winston D. Holliday Jr. of the Columbia office prosecuted the case, with assistance from trial attorneys Kevin C. Lombardi and and Gregory R. Bockin of the U.S. Department of Justice, Tax Division.