Bradford physician Martin D. Jacobs has been indicted on federal
tax evasion charges, as well as charges of fraudulently obtaining
Department of Education funds for college student aid.

Assistant U.S. Attorney Marshall J. Piccinini presented the case
to a federal grand jury in Erie to secure the seven count
indictment. The investigation was conducted by the Internal Revenue
Service, criminal investigation unit.

Jacobs is alleged to have employed a scheme to evade the
assessment of income taxes for the tax years 2000 through 2003 and
evade the payment of income taxes for the years 1997 through 1999.
Also, Jacobs allegedly falsely represented his total available
income and assets on an application for Federal Student Aid,
according to the indictment.

Piccinini said the maximum total sentence provided for under the
law is 35 years in prison, a fine of $1,750,000 or both. The actual
sentence would be based on the seriousness of the offense and any
prior criminal history of the defendant, Piccinini explained.

The indictment, dated Tuesday, explains each count Jacobs is
facing.

The first count reads that Jacobs “did willfully attempt to
evade and defeat the payment of a large part of the income tax due
and owing by him to the United State of America” for 1997 in the
amount of $18,510; for 1998 in the amount of $2,498; and for 1999
in the amount of $41,494 “by concealing and attempting to conceal
from the Internal Revenue Service the nature and extent of his
resources and the location thereof, making false statements to
agents of the (IRS), by transferring funds into foreign bank
accounts and by placing property in the name of a supposed
trust.”

Counts two through four of the indictment alleges that Jacobs
reported his income for the years 2000, 2001 and 2002 was zero each
year, and therefore, he owed no taxes. He also is alleged to have
used bank accounts with another person’s Social Security number,
made false statements to the IRS, purchased and held cashier’s
checks to conceal assets and concealed other assets as well.

Count five alleges that Jacobs failed to file an income tax
return for the year 2003.

Counts six and seven allege that Jacobs did obtain “by fraud and
false statement federal higher education assistance funds” in an
amount in excess of $200 by falsely reporting his total available
income and assets on applications for Federal Student Aid filed on
May 20 and Aug. 14, both in 2004, the indictment reads.

According to Special Agent Andrew Hromoko Jr. of the Department
of Treasury, the figure of $200 in counts six and seven is the
amount to meet the criteria of filing a charge. The amount obtained
is more, but Hromoko said the amount “is not in the public record
yet” and cannot be released at this time.

Jacobs, who specializes in internal medicine, came to Bradford
in 1980.

Bradford Regional Medical Center Director of Communications and
hospital spokesperson Kimberly Maben clarified that Jacobs is not a
hospital employee, but rather a private practitioner with medical
staff privileges at the Medical Center. “We would have no knowledge
of his finances or this event,” Maben said.