A Bradford doctor pleaded not guilty before a federal judge in
Erie on charges of income tax evasion and lying on an application
for federal student aid.

Martin D. Jacobs, who is represented by attorney Gary Borek of
Amherst, N.Y., entered his plea before Judge Susan Paradise Baxter
Monday. He remains free on $10,000 bond.

Jacobs is charged with five counts of income tax evasion and two
counts of fraudulently obtaining Department of Education funds.

Jacobs allegedly evaded the assessment of federal income tax for
the tax years 2000 to 2003. He also allegedly did not pay his
income taxes from 1997 through 1999.

According to information provided by the U.S. District Court,
Jacobs is also charged with falsely representing his total
available income and assets on an application for Federal Student
Aid.

The indictment against Jacobs lists that he did not pay the full
amount of the income tax he should of “by concealing and attempting
to conceal from the (IRS) the nature and extent of his resources
and location thereof, making false statements to agents …, by
transferring funds into foreign bank accounts and by placing
property in the name of a supposed trust.”

He also reported that his income from 2000 to 2002 was zero for
each year, therefore, he did not owe taxes.

Jacobs also allegedly 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.

When contacted by The Era, officials from Bradford Regional
Medical Center confirmed that Jacobs had relinquished his medical
staff privileges, which provide physicians the ability to admit
patients to the hospital.

“It is our understanding that he is going to maintain his office
practice as he always has,” according to BRMC Communications
Director and hospital spokesperson Kimberly Maben. “Dr. Jacobs has
made arrangements for the care of his patients with other
practitioners while they’re in the Medical Center.”

That period of time is undetermined, she added.

Jacobs is not a hospital employee but is rather a private
practitioner and had admitting privileges at BRMC until Oct. 23,
Maben said.

According to Cathy Ennis, deputy press secretary for the
Department of State, Jacobs’ license is in good standing.

Jacobs, who specializes in internal medicine, moved to Bradford
in 1990.

The maximum total sentence provided 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.

Baxter also put conditions on Jacobs’ bail. The doctor was
ordered to surrender his passport and his travel is restricted to
the western district of Pennsylvania and the western district of
New York.

Marshall Piccinini is the prosecuting attorney.