Marietta dog broker sentenced to prison for filing false tax returns, US attorney says

ATLANTA — A man is facing prison time for submitting false tax returns after records show he deposited over $2 million into personal checking accounts.

On Thursday, the U.S. Attorney’s Office said Justin Daniels has been sentenced for filing false tax returns in connection with his dog-brokering business.

Daniels falsely underreported over $1 million in income between 2015 and 2018.

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U.S. Attorney Ryan K. Buchanan said Daniels spent years submitting false returns.

“Rather than pay his fair share of taxes, Daniels spent years submitting fraudulent returns in the name of personal greed,” said Buchanan. “This office will continue to work with our law enforcement partners to pursue and prosecute those who exploit our tax system at the expense of law-abiding taxpayers.”

According to Buchanan, the charges, and other information presented in court, Daniels had earned a living as a dog broker since 2006 selling Yorkie, Morkie, and Shi-Tzu puppies.

The attorney’s office said although Daniels’s customers believed he was selling the puppies directly, the puppies were being raised by breeders in Kentucky and Tennessee.

The cost of the puppies ranged from $800 to $1,200.

“Justin Daniels’ sentence is an example of what people who willfully fail to report all their income can expect as the outcome of their crime,” said Lisa Fontanette, Assistant Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation will continue investigating and holding accountable individuals who intentionally conceal income and evade taxes.”

The U.S. attorney said between 2015 and 2018, Daniels received and deposited more than $2.3 million into personal checking accounts.

Daniels significantly underreported his income on his taxes. Based on information that Daniels provided to his tax preparer, he underreported $1,186,830 in gross receipts during the years 2015 to 2018, resulting in additional tax due of $258,265.

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At the same time, Daniels was submitting false information on his tax returns and representing to private lenders that he made substantially more money to obtain loans, according to the U.S. attorney’s office.

Daniels was sentenced to one year and two months in prison to be followed by one year of supervised release on Apr. 22. He was also ordered to pay restitution in the amount of $258,265.

The U.S. attorney’s office said Daniels was convicted on these charges on December 5, 2023, after he pleaded guilty.

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