NEWARK, NJ — Jason Kronick, a 51-year-old man from Boca Raton, Florida, was sentenced today to 78 months in federal prison for his role in a multi-million-dollar tax evasion scheme. Kronick, who was convicted in June 2024, had evaded over $8.6 million in income and payroll taxes between 2010 and 2017, despite earning over $20 million in taxable income.
Kronick’s conviction stems from his deliberate efforts to avoid paying taxes owed to the IRS, including more than $200,000 in payroll taxes he had collected from his employees but failed to remit to the federal government. As part of the scheme, Kronick used various methods to conceal his income and assets, including lavish purchases and gambling activities.
Tax Evasion and Lavish Spending
The U.S. Attorney’s Office revealed that Kronick engaged in an array of extravagant expenditures to disguise his taxable income. These included using approximately $1.8 million from his controlled accounts to purchase over 40 luxury watches, spending more than $4.7 million on home renovations and interior decorating, and transferring large sums of money to casinos.
Investigators uncovered that Kronick took more than $1.8 million from his business accounts and converted it into casino chips, which he later cashed out for a comparable amount of money. In addition to these high-end purchases and gambling activities, Kronick cashed around $159,000 in checks at check-cashing businesses, further obscuring his financial dealings from the IRS.
The IRS Pursues Justice
U.S. District Judge Susan D. Wigenton, who oversaw the trial, handed down the sentence after Kronick’s conviction on four counts of tax evasion. During the trial, prosecutors detailed how Kronick’s efforts to conceal his income were aimed at evading taxes and penalties. The extensive investigation by the IRS revealed his widespread tax fraud activities, which included the use of false documents and intentional misreporting of income.
Restitution and Supervised Release
In addition to his prison sentence, Judge Wigenton imposed a three-year period of supervised release for Kronick following his incarceration. The court also ordered Kronick to pay restitution in the amount of $10.27 million to cover the taxes, penalties, and interest he owed to the IRS for his fraudulent activities.
Kronick’s sentencing marks a significant victory for the IRS and a clear message that tax evasion will not be tolerated. “Tax evasion deprives the U.S. government of critical resources needed to support essential public services,” said U.S. Attorney for the District of New Jersey. “We will continue to pursue those who exploit the system for personal gain, no matter the cost.”
A Cautionary Tale for Business Owners
Kronick’s case highlights the serious consequences of attempting to cheat the tax system, especially for business owners who collect taxes from employees and customers. His conviction also serves as a reminder that luxury spending and gambling will not shield individuals from federal scrutiny. Even as some try to conceal their assets through lavish lifestyles, the IRS has increasingly sophisticated methods for tracking down tax fraud.
As Kronick begins his prison sentence, the restitution and lasting financial consequences serve as a clear indication that the U.S. Department of Justice is committed to holding accountable those who deliberately evade their tax obligations. The case serves as a warning for others who might think they can escape the IRS’s oversight by using deception and dishonest reporting practices.