Chicago Hotel Operator Sentenced to 6 Years for Tax Evasion – Los Angeles Income Tax Planning and Income Tax Litigation Attorney Bruce Givner

by Bruce Givner on February 4, 2014

Robert Falor, manager of the real estate company Falor Companies, was sentenced to six years in federal prison after pleading guilty to evading more than $1.7 million in federal income taxes (United States v. Falor, N.D. III No. 1:11-cr-00578, sentenced 1.31.14).

The 48 year old real estate developer, who has been in custody since 2011, was sentenced by U.S. District Court Judge Virginia Kendall for tax evasion crimes linked to the 2006 collapse of Falor’s company. According to the U.S. Attorney’s Office in Chicago, Judge Kendall described Mr. Falor as “a one-man financial crime wave.”

Falor Companies owned and managed hotels in Illinois, including Hotel 71, and in Florida, and was best known for promoting condominium-hotel investments in which the company bought hotels and sold the rooms individually as condos. While this strategy represented a popular financing option for hotel developers during the previous real estate boom, many of these projects failed following the Great Recession, triggering lawsuits from lenders and investors. Not to mention a federal investigation.

Falor’s father, David R. Falor, 73, and his brother, Christopher Falor, also pleaded guilty to tax evasion. While the father was sentenced to two years in prison, the brother is awaiting sentencing on March 5.

Givner & Kaye focuses on sophisticated income tax planning and compliance, tax litigation and procedure, estate planning, and asset protection plans for individuals and businesses in Beverly Hills, Calabasas, West Los Angeles, Hollywood, and other areas of Los Angeles, Orange, Ventura, San Bernardino, Riverside and Santa Barbara Counties. Call Los Angeles Estate Planning and Asset Protection Plan Attorneys Givner & Kaye at (310) 207-8008 today.

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