CLARKSBURG, W.Va. – The manager of the Middletown Mall has admitted in federal court to bankruptcy and tax fraud.
Dietrich Fansler, 59, the manager of Pin Oak Properties, has admitted to bankruptcy fraud and tax fraud, according to the United States Attorney’s Office.
Fansler, of Morgantown, is the managing member of Pin Oak Properties, LLC, which operated Middletown Mall in Fairmont. Fansler pleaded guilty to one count of fraudulent concealment of bankruptcy estate assets and one count of willful failure to pay over tax, according to the U.S. Attorney’s Office.
Fansler filed for Chapter 11 bankruptcy protection in June 2017. Between June 2017 and January 2018, Fansler collected rent from the tenants of the mall and was required to deposit that money into the debtor-in-possession account of Pin Oak Properties. Fansler admitted to using some of that collected rent, approximately $225,000, for expenses unrelated to Pin Oak Properties and concealing it from the creditors of the bankruptcy estate, according to the U.S. Attorney’s Office.
Fansler also admitted to failing to pay the withheld income taxes from employees of Pin Oak Properties and another one of his companies, Villa Rentals, Inc. He admits, too, that he did not pay personal income taxes for the years 2009, 2010, 2012 and 2013. The total loss to the IRS is more than $880,000, according to the U.S. Attorney’s Office.
As a part of the plea, Fansler agrees to pay $225,000 in restitution to the bankruptcy trustee, as well as $880,446.82 in restitution to the IRS, according to the U.S. Attorney’s Office.
Fansler faces up to five years in prison and a fine of up to $250,000 for each count.
The Internal Revenue Service investigated.