Broker pleads guilty to tax evasion He admits to diverting $1.5 million from clients

April 05, 1996|By John Rivera | John Rivera,SUN STAFF

An investment broker who worked out of an office in Timonium has pleaded guilty to charges of income tax evasion and mail fraud for bilking money from his clients, the U.S. attorney's office said.

Russell S. Farb, who lives in Baltimore and Tucson, Ariz., admitted Tuesday to diverting more than $1.5 million from four limited partnerships he operated that invested in tax lien certificates.

Farb, whose office was on York Road in Timonium, admitted to skimming between $1.5 million and $2.5 million from the limited partnerships. He used the money for personal benefit, prosecutors said, including $177,500 to pay for gambling in Atlantic City, N.J., $165,000 to buy a house in Tucson, $40,000 to make mortgage payments on business property in Timonium, and $50,000 to buy a health club in Tucson called Fifth Street Fitness.

Farb pleaded guilty to income tax evasion for not reporting gross income on returns filed between 1988 and 1992. He admitted to evading $78,594 in 1988 and $211,801 in 1992. He admitted to evading at least $721,820 in taxes between 1988 and 1992, primarily from income earned from the limited partnerships he controlled.

Sentencing before U.S. District Judge Marvin J. Garbis is scheduled for May 15. Farb could be sentenced to a maximum of 15 years in prison and fined $450,000.

Pub Date: 4/05/96

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