When the Watchdogs Do the Cheating

No. This isn’t about the Panama Papers. It’s about a local couple, the woman being a Federal Tax Judge, cheating on their….taxes.

According to court documents, 60-year-old Diana Kroupa and her husband, 62-year-old Robert Fackler, defrauded the government by intentionally understating their taxable income by $1 million.

Wait. But, surely there must be a mistake! A tax judge is supposed to uphold the viability of the system, keeping us poor taxpayers honest, making sure we don’t cheat. In order to do so, they need to know all the loopholes. Ohhhhhhh……

According to court documents, the two fraudulently claimed personal expenses as business expenses. Those expenses included rent, utilities, Internet and cable service, garbage removal, household cleaning, remodeling services, household items, interior design fees, home repair and decorating, landscaping and plumbing repairs, as well as limousine and taxi fees, Pilates classes, spa and massage fees, jewelry and personal clothing, wine club fees and purchases at wineries, Chinese tutoring, music lessons, personal computers, family and graduation photos, Christmas cards, groceries, dry cleaning and laundry, and personal cellphone charges.

Expenses also included airfare, hotel and other expenses for vacations to Alaska, Australia, Bahamas, China, England, Greece, Hawaii, Mexico and Thailand, among other locations, according to the documents.

I get it now.



  1. johnson catman says

    Rules for thee, but not for me!

    Hardly anything riles me like people in positions of power disregarding the rules for themselves. This includes wealthy people who buy their way out of situations that would put everyday people in a bind.

  2. lorn says

    To make it clear it is Diane L. Kroupa (60) is a former judge and had retired in 2014. They might be guilty of all they are accused of. Arrogance is rampant at those levels. There is also a chance that this is all a setup, and/or payback. The question is why her, and why now?

    The IRS is underfunded and hard pressed to do any investigation. Particularly one which may be more complicated, require more resources to prosecute, and one which the payoff will likely be limited. That was, of course, why the IRS budget was intentionally kept low.

    There is also the boiler-plate warning about conflating prosecution with conviction. The same has been a long standing tactic on the right. Stories about 147 FBI agents digging into the Clinton server case is a good example. It is basic ‘where there is smoke, there is fire.’ logic. Don’t be too quick to condemn. Even if it is fun to have one’s existing bias seemingly confirmed in so juicy a manner.

    There are lots of people who might want to see the judge humiliated and forced to go broke defending against legal charges. But for their legal defense fund the Clintons would have been ruined. So … people who might be interested in a little payback:

    She made an interesting ruling about an independent film makers project and it expenses being non-tax deductible based upon the idea that the intent was to educated, as opposed to making a profit.


    There is also the matter of her rulings on whistle-blower’s protection, interestingly, and somewhat at conflict with right-wing doctrine, she expanded that protection.


    There is also the judges decision of how to handle marijuana production expenses for federal tax. This would be a major impediment to legal under-state-law growers.


    Or perhaps the matter of major financial institution shifting funds between nation as a tax dodge and claiming the activity as tax deductible. He ruling cost NY Melon $200 million. She pissed off a whole lot of wealthy people on that one.


    As always, the play isn’t ever until the fat lady sings.

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