Hoffman Estates couple indicted on tax evasion charges

A Hoffman Estates couple is facing tax evasion charges after federal prosecutors said they created a shell company to file a fake mortgage on their home and filed a false bankruptcy petition.

The indictments were announced Friday against 69-year-old Dean R. Loppnow and his 61-year-old wife Lynn S. Loppnow.

Prosecutors said the couple failed to file income tax returns for three years between 2004 and 2006. During that time, the government claims the pair earned a combined $1.4 million that they never paid taxes on.

Additionally, the indictment indicates the government put a lien on the Loppnows' bank accounts in 2005 for Lynn Loppnow not paying income taxes in 2002.

Instead of paying the back taxes, fines and interest, prosecutors said the pair created a shell company to record a fake mortgage on their residence for $500,000 and withdrew hundreds of thousands of dollars from their retirement accounts without paying federal taxes. Then Lynn Loppnow filed for bankruptcy protection, claiming less than $50,000 in assets and more than that in debts. Dean Loppnow petitioned to have the lien removed from the bank accounts because of the bankruptcy filing.

The couple is facing five years in prison if convicted and would have to pay the back taxes along with fines, fees and court costs, prosecutors said.