Robert Falor, a Chicago-based former condominium hotel promoter, was arrested on Thursday for tax evasion.
Falor is accused of failing to pay US$1.75 million in federal income taxes for the years 2004, 2006 and 2007. If convicted, Falor could face a maximum sentence of 15 years in prison and US$750,000 in fines.
At an arraignment on Thursday Falor plead not guilty, with his attorney saying Falor never filed tax returns for those years because he did not have access to Falor Companies Inc. company records.
Last year Christopher Falor, Robert’s brother, was convicted of embezzling US$4 million from a Hotel 71 revitalization project in Chicago after pleading guilty.