NEWARK, N.J. – Joel Konopka, 45, a contractor from Elizabeth, New Jersey, was apprehended today on charges of tax evasion, as reported by U.S. Attorney Philip R. Sellinger.
Konopka faces indictment on multiple charges, including four counts of corporate tax evasion, two counts of submitting false corporate tax returns, and two counts of not filing the necessary corporate tax returns. Earlier today, Konopka stood before U.S. Magistrate Judge Jessica Stein Allen in Newark federal court and has been detained.
Documents presented in court claim that between 2014 and 2017, Konopka owned and was the sole shareholder of Konopka Construction Inc. This business offered construction, contracting, and snow plowing services across northern New Jersey. As mandated by U.S. tax laws, Konopka was responsible for submitting honest and correct corporate tax returns, Form 1120s, for his company, declaring all its earnings.
However, over that four-year period, Konopka Construction earned a minimum of $3.3 million, with over $1 million earned in 2016 alone. Konopka did not report this income accurately. For 2014 and 2015, the filed corporate returns claimed zero income for Konopka Construction. For the subsequent years, 2016 and 2017, Konopka did not submit any corporate tax returns. Throughout these years, no corporate tax payments were made to the IRS.
In a bid to conceal the company’s earnings, Konopka primarily operated with cash transactions. He cashed almost all of the checks – which amounted to hundreds of thousands of dollars annually – at check cashing businesses in Essex and Ocean counties, thereby evading any trace.
The tax evasion allegations could lead to a maximum penalty of five years imprisonment and fines of up to $500,000 for each count. The charges for submitting false tax returns can result in up to three years in prison and a fine of $500,000 for each count, while the charges for not filing tax returns carry a potential one-year imprisonment and a $100,000 fine for each count.