CHICAGO-Robert Falor, chief operator and manager of the defunct Falor Cos. development firm, faces a second bond hearing at 2:30 p.m. central time today.
Falor, 43, pled not-guilty to tax evasion charges at his arraignment Thursday, Sept. 1, in federal court here. A federal indictment contains three counts alleging failure to pay more than $1.75 million in income taxes.
Falor was active in the Chicago hotel-condo market from 2004-06, and he owned properties such as the Blake Hotel at 500 S. Dearborn and Hotel 71 at 71 E. Wacker here, and the Tides Hotel on Ocean Drive in Miami Beach, FL. The Falor Cos. ceased operations in 2006, and the properties were sold to other entities.
A federal indictment alleges that Falor didn’t pay more than $1.7 million in income taxes earned from his dealings with the properties. Each count carries a maximum penalty of five years in prison and a $250,000 fine, as well as a charge of 75% of the underpayment, plus interest, and court costs.
A spokesman for Patrick Fitzgerald, the US Attorney for the Northern District of Illinois, tells GlobeSt.com that the upcoming detention hearing is continuing from earlier talks. “There have been ongoing proceedings on whether he should be released on bond at all,” the spokesman says. Ariel Weissberg, Falor’s attorney, did not return a call to comment on this case.
The indictment alleges that Falor did not report or pay $189,246 in income taxes from his 2004 earnings, $494,261 from his 2006 earnings and about $1.1 million from his 2007 earnings. Some of these earnings came from loans Falor owed after his business closed, it is alleged in the indictment.
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