Former insurance salesman convicted of tax fraud, lying in bankruptcy statements

A former Lake Orion salesman for insurance and for a gutter-protection business is possibly facing years in prison for filing false tax returns and making false statements in bankruptcy.

According to a news release from the Department of Justice, Donald Stanley LaVigne was convicted Tuesday in federal court on seven counts of filing false tax returns, two counts of making false statements in bankruptcy and one count of making a false statement to the DOJ. As stated in court documents, LaVigne didn’t report insurance commissions and other income to the IRS on tax returns filed for 2013 through 2019. Also, he falsely claimed the commissions weren’t income to him.

In LaVigne’s 2018 bankruptcy filing, he didn’t list the IRS as a creditor despite owing taxes to the IRS for 2008, 2009 and 2013 through 2015. He also understated income from 2016 and 2017, the DOJ stated. And when he was notified about being investigated by a federal grand jury, LaVigne respond with a letter in which he falsely claimed his bankruptcy attorney had advised him that his 2017 income tax return was “correct and complete” — though that contradicted with testimony from the attorney who said that was false, the DOJ stated.

LaVigne faces up to three years in prison for each of the filing false tax returns convictions, five years for each of the false statements in bankruptcy convictions and five years for making the false statement to the DOJ. A period of supervised release, restitution and monetary penalties is also possible. His sentence will be determined by a federal district judge based on U.S. sentencing guidelines and other factors.

LaVigne’s sentencing hearing is scheduled for June. 1.