Owners of S&H Parking Systems Sentenced on Million-Dollar Tax Evasion Charges

Topics:  S&H Parking Systems

U.S. Attorney’s Office, Eastern District of Missouri
December 3, 2010

ST. LOUIS, MO—The United States Attorney’s Office announced today that William Bialczak was sentenced to 12 months and one day in prison, ordered to pay $370,185 restitution, and fined $100,000. Kenneth Bialczak was sentenced to 12 months and one day in prison, ordered to pay $347,314 restitution, and fined $75,000. Additionally, each of them was ordered to perform 100 hours of community service.

The Bialczaks engaged in skimming substantial sums of cash receipts from their businesses which were never deposited into their business bank accounts. Cash income generated by the businesses during tax years 2005 and 2006 far exceeded cash that was deposited into the business bank accounts and subsequently reported to the Internal Revenue Service as gross receipts. As part of their pleas in September, they admitted that between 2005 and 2006, gross receipts for their businesses were under reported by approximately $1 million.

The Bialczak brothers own, operate and are equal partners in St. Louis Metropolitan Towing, L.P., Parks Auto Sales, and S&H Parking Systems, LLC, all located in St. Louis. According to court documents, these businesses generated large amounts of cash from the operation of parking lots in downtown St. Louis, towing operations stemming largely from a contract with the St. Louis Metropolitan Police Department, and the sale of vehicles at auction and otherwise.

"The license to run a business is not a license to evade taxes," said Toni Weirauch, Special Agent in Charge of IRS Criminal Investigation. "The Bialczak's misconduct cheated all Americans, since we all have to pay our fair share for the government services and protections that we enjoy."

William Bialczak, 62, St. Louis County; and Kenneth Bialczak, 49, St. Louis County, each pleaded guilty in September to two felony counts of tax evasion, and appeared today before United States District Judge Rodney W. Sippel.

This case was investigated by Internal Revenue Service Criminal Investigation, Postal Inspection Sercvice and the Federal Bureau of Investigation. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.