Narberth businessman convicted in $390,000 tax fraud

By Michael Hinkelman, Daily News Staff Writer

Posted: May 23, 2012

A Narberth man who owned and operated a company that processed dental claims for labor union health and welfare funds was convicted by a federal jury Tuesday of willfully filing false tax returns from 1999 through 2002.

Jonathon Felix, 51, who owned and operated United Professional Plans, Inc., which received management fees on a per claim or per person basis to process claims and resolve disputes between labor union members and dental providers. Among the unions UPPI worked for was District Council 33 of AFSCME, which represents the city of Philadelphia’s blue-collar workers.

Evidence and testimony presented at trial showed that Felix took significant funds from his company in various ways which ultimately led to the failure of UPPI.

Prosecutors alleged that Felix used corporate funds for personal expenses and then signed and filed false income tax returns for years 1999 through 2002 in which he substantially underreported his income and did not disclose the funds he appropriated from UPPI.

Authorities said the false returns resulted in a tax loss to the IRS of approximately $390,000.

U.S. District Judge Petrese Tucker scheduled sentencing for August 23.

Contact Michael Hinkelman at 215-854-2656 or hinkelm@phillynews.com or follow on Twitter @MHinkelman.