Federal prosecutors say a southern New Jersey attorney who already owed money to the IRS has admitted evading income taxes by hiding assets in an attorney trust account in his wife's name.

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Lee Gottesman pleaded guilty Tuesday to a complaint charging him with federal income tax evasion and failing to pay payroll taxes for the employees of his Toms River-based law firm. The 57-year-old Toms River man faces up to 10 years in prison when he's sentenced Aug. 21.

Prosecutors say the IRS filed a levy on Gottesman's assets in 2002 due to unpaid taxes. He then opened a sub-account in his wife's name and ran nearly all of his personal and business expenses through the account.

But he never paid personal income taxes on the hidden income.

 

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