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Woodcliff Lake Stockbroker Indicted for Tax Evasion

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the staff of the Ridgewood blog

Woodcliff Lake NJ, a Bergen County man was arrested today on four counts of tax evasion, Acting U.S. Attorney Rachael A. Honig announced.

Jason Kronick, 48, of Woodcliff Lake, New Jersey, was charged by indictment on Aug. 25, 2021, with three counts of income tax evasion and one count of employment tax evasion. He made his initial appearance before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was released on $1 million unsecured bond.

A stockbroker with a troubled past, Jason Kronick was fired by the brokerage firm Standard Credit Securities in May 2012 amid allegations of “unauthorized trading and unauthorized positions,” according to a complaint filed by the Financial Industry Regulatory Authority.

Kronick, 42, of Woodcliff Lake, later found employment with another firm, Vandham Securities, but failed to disclose on his employment application that he had $330,000 in judgments against him, a violation of policy, according to the complaint. The document added that in March 2013, Kronick was “permitted to resign to address issues relating to his failure to adequately disclose personal information.”

The complaint, filed in February 2015, noted Kronick had not responded to requests for information and sought sanctions against the broker.

He filed for bankruptcy in March 2014. Kronick’s tax bill to New Jersey has ballooned to more than $2.2 million. His bankruptcy petition notes he also owes the IRS $2 million.

According to documents filed in this case and statements made in court:

For the tax years 2008 through 2010, Kronick evaded payment of more than $4.3 million in income taxes, not including penalties and interest, despite having earned approximately $20 million in taxable income. Kronick used approximately $1.5 million from his business bank accounts to buy approximately 40 rare and expensive watches; used at least $1.9 million from the business accounts to pay for home renovations; used company funds to pay at least $700,000 in personal credit card bills; transferred more than $700,000 from his business accounts to various casinos, where he converted the money to chips, gambled, and then redeemed chips for cash; and cashed approximately $160,000 in checks at check-cashing businesses to conceal the proceeds from the IRS. Kronick also filed a statement with the IRS in 2011, falsely claiming that he had no income for that year, when in fact he received more than $2.8 million in income.

Each of the four counts of tax evasion carries a maximum penalty of five years in prison and a fine of up to $250,000.

Acting U.S. Attorney Honig credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the Cybercrime Unit in Newark.

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