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Jersey Shore Star Finds Self in Legal Situation

Mike "The Situation" Sorrentino and fiancee Lauren Pesce / Getty Images
April 7, 2017

Michael "The Situation" Sorrentino and his brother Marc were indicted on new federal charges of fraud and falsifying records on Friday.

The former star of MTV's Jersey Shore cooked the books of Situation Nation along with his brother in an attempt to hide income and avoid paying federal taxes, according to the Department of Justice. Situation Nation is a clothing line which employs a style TMZ once described as "Cheeseball in Paradise." The line reportedly included everything from lip balm to laundry bags to expensive track jackets. The DOJ claims the brand somehow made nearly $9 million over 2 years.

"Michael was a reality television personality who gained fame on the television show 'The Jersey Shore,' which first appeared on the MTV network," a DOJ statement said. "Michael and his brother Marc created businesses, such as MPS Entertainment LLC and Situation Nation Inc., to exploit Michael’s celebrity status. The superseding indictment alleges that the brothers conspired to defraud the United States by not paying all federal income tax owed on approximately $8.9 million that Michael earned between 2010 and 2012."

The DOJ said The Situation and his brother used a number of tricks to underreport the amount of money they took in from Situation Nation, including depositing cash in multiple bank accounts to avoid triggering certain reporting requirements.

"The superseding indictment also charges that Michael made multiple cash deposits on the same day in amounts less than $10,000, into different bank accounts that he controlled, in an effort to evade the banks’ reporting requirements – banks are required to file reports with the U.S. Treasury for cash deposits exceeding $10,000," the DOJ statement said. "These reports include the identity of the person who conducted the transaction and the individual or organization for whom the transaction was completed."

The DOJ further accused the pair of using their business accounts to buy luxury cars and clothes for themselves. "As part of the conspiracy, the brothers also allegedly commingled funds among business and personal bank accounts and used the money from the business bank accounts to pay for personal items, such as high-end luxury vehicles and clothing," the statement said.

The DOJ emphasized that these are only accusations and The Situation will have his day in court to present a defense.

Published under: IRS , Taxes , TV News