U. S. Department of Justice
United States Attorney
Northern District of Illinois
Patrick J. Fitzgerald Federal Building
United States Attorney 219 South Dearborn Street, Fifth Floor
Chicago, Illinois 60604
FOR IMMEDIATE RELEASE PRESS CONTACTS:
TUESDAY APRIL 13, 2010 Randall Samborn, AUSA/PIO (312)353-5318
www.usdoj.gov/usao/iln Kerry Hannigan, IRS-CID (708)503-7585
CHICAGO INTERIOR DECORATOR PLEADS GUILTY TO
FEDERAL INCOME TAX FRAUD RESULTING IN $211,000 TAX LOSS
CHICAGO — A Chicago interior decorator pleaded guilty today to federal income tax fraud,
admitting that he failed to report more than $3.7 million in gross business receipts and more than
$750,000 in personal income over three years, resulting in a tax loss of more than $200,000 to the
United States. The defendant, Frank S. Perry, the sole owner of Frank S. Perry Residential
Interiors, Inc., pleaded guilty to filing a false federal individual income tax return for 2002 and
admitted that he similarly filed false returns for 2003 and 2004.
Perry, 59, of Chicago, is scheduled to be sentenced on July 7 by U.S. District Judge Wayne
Andersen. He faces a maximum term of imprisonment of three years, and an advisory federal
sentencing guideline range of 18 to 24 months in prison. In addition to a prison term, Perry faces
a maximum fine of $250,000 together with mandatory costs of prosecution and mandatory
restitution. Like any defendant convicted of tax fraud, Perry also remains civilly liable to the United
States for any and all back taxes, as well as a civil fraud penalty of 75 percent of the underpayment
In announcing the guilty plea, Patrick J. Fitzgerald, United States Attorney for the Northern
District of Illinois, and Alvin Patton, Special Agent-in-Charge of the Internal Revenue Service
Criminal Investigation Division in Chicago, urged the public to comply with their federal tax
obligations in advance of the April 15 filing deadline.
Because Perry’s business was a Subchapter S Corporation, corporate revenues and
deductions were not taxed at the corporate level, but flowed through to and were required to be
reported on his individual income tax returns. In pleading guilty, Perry admitted that the
corporation’s actual gross sales were significantly greater than the amounts he provided to his
accountant and greater than the amounts he falsely reported on his returns as his gross sales.
For 2002, Perry failed to disclose gross business receipts of at least $2,735,369 and income
of at least $528,799. For 2003, he failed to disclose gross receipts of at least $596,848 and income
of at least $211,618, and for 2004, the figures were $444,943 in undisclosed gross receipts and
$14,143 in under-reported personal income. For all three tax years combined, Perry failed to pay
the IRS at least $211,277 in income taxes, according to his guilty plea.
The government was represented by Assistant U.S. Attorney Patrick Pope.