Hobe Sound man accused of failing to pay taxes on $1.6 million, Social Security fraud
By Sara Marino
November 20, 2018
Dr. Arthur Kranz pleaded guilty to tax evasion, wire fraud and Social Security disability fraud on Tuesday, according to the Department of Justice’s Tax Division.
According to the department, Kranz made a claim on his personal disability policy saying he was unable to work in 2002 and started to receive payments.
In December 2003, Kranz applied for disability benefits with the Social Security Administration, which was approved.
From January 2006 to March 2013, Kranz worked as a psychiatrist in Pennsylvania and earned over $1.6 million in income. He failed to report any of the income.
According to the Justice Department, Kranz did not tell his personal insurance company or the Social Security Administration he began working again and continued to receive payments.
In an attempt to keep payment from the government and his insurance company, Kranz had his income transferred to others and corporations. Kranz also filed false personal tax returns, the Justice Department said.
Kranz could face up to five years in prison for tax evasion, 20 years in prison for wire fraud and five years in prison for Social Security fraud, according to the department. Kranz will have to pay penalties from the IRS and his personal insurance company that have not been calculated yet.
Kranz’s sentencing is scheduled for Feb. 6.