A Florida contractor who once leased Russian planes to the U.S. Air Force for training flights has pleaded guilty to a tax fraud scheme worth $1.7 million..

Department of Justice officials said Maxim Silinsky of Fort Lauderdale, Florida underpaid both corporate and individual income tax from 2007 through 2010 by hiding funds through a series of domestic and foreign entities, as well as other financial accounts.

Silinsky's Simplex Corporation provided aircraft parts to U.S. military deployed in Afghanistan, as well leasing Russian aircraft to the Air Force. Starting in 2008, Silinsky underreported income on tax returns, transferring a total of $1.7 million to nominee bank accounts under the auspices of being the costs of goods sold.

During a 2012 audit of the company, DOJ officials said Silinsky lied to IRS agents about the transfers. He also purchased real estate under the names of the nominee count holders to further obscure the funds.

Finally, Silinsky employed a family member to serve has a shareholder of a shell company set up to receive the funds. The shell company paid taxes on the money, but at a lower rate.

Silinsky struck a plea deal with prosecutors in which he also admitted to making illegal payments to a government contract and U.S. military personnel. He entered the guilty plea on Nov. 24.

The contractor will face sentencing at a Feb. 2 hearing, where he faces up to three years in prison and a $250,000 fine or twice the loss of tax revenue, plus restitution to the IRS.

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