A Colorado Arabian breeder was sentenced Wednesday to four months in federal prison for tax evasion, according to the U.S. Attorney’s Office.
photo of MHR Nobility
Nick Mangeris was ordered to serve 24 months of home detention following his prison sentence as part of a 3-year term of supervised release. Mangeris was ordered by U.S. District Court Judge Brooke Jackson to pay a $1,200 fine and almost $900,000 in restitution to the IRS.
Mangeris of Berthoud pleaded guilty to tax evasion in October 2013 after being indicted by a federal grand jury at the start of the year. Mangeris evaded payment of nearly $900,000 in back taxes, penalties and interest for calendar years 1997-1999, according to court documents.
He admitted registering Arabian horses under business names to avoid having to disclose his interest in them. There were two horses that generated significant proceeds for Mangeris including MHR Nobility. Based upon the Arabian stallion’s lineage, Mangeris was able to sell MHR Nobility’s semen for about $2,500 a breeding.
According to the indictment and plea agreement, Mangeris owned and operated several vitamin businesses. In 1992 he owned twenty-five percent of a vitamin business called Kaire International. The company generated on average between $5 to $6 million in monthly gross proceeds. Mangeris received income from Kaire International until he left the company.
In January 2007, Mangeris falsified an IRS form and made false statements to an IRS agent, according to officials. He stated on the form that he was self-employed, had no real assets, no income, lived with friends and relatives, and maintained no bank accounts. Authorities state the information was false. Mangeris owned and operated his horse business that earned over $80,000 the year prior. He controlled a bank account which he made over $375,000 in deposits in 2006. Additionally, he and his wife rented a home for $3,450 a month at the time of his meeting with the IRS officer.
According to the IRS, Mangeris has made no voluntary payments toward his tax debt and has “taken overt acts to evade the payment of his tax debt.”
Mangeris is ordered to report to prison in 15 days.