Rose City Dentist Charged with Federal Mail Fraud

Carter White Rae, a local dentist in Michigan, was arrested on Thursday and arraigned on an indictment that charged him with tax evasion, federal mail fraud, and making false statements to the Internal Revenue Service.

The United States Attorney’s Office accuses Rae of refusing to pay the state of Michigan federal taxes between 2001 and 2011.  Court documents allege that Rae operated his dental practice, and opened a business checking account, under the name and employee identification number of the former owner of the practice.   It is also believed that Rae characterized payments made to his wife as payroll while his wife reportedly live in another state and performed little or no work for him.  The U.S. Attorney’s Office also believes Rae “further attempted to relieve his tax burden” by filing bankruptcy.

Carter White Rae has been released on a $100,000 unsecured bond.  No future court dates have been set at this time.

If convicted, Carter Rae faces a maximum prison sentence of five years for the tax evasion charge and charge of making false statements.  According to the federal statutes in this case, Rae faces up to 20 years in prison and a fine of up to $250,000 for the one count of mail fraud.

The United States Attorney’s Office in Bay City is prosecuting the case and the investigation was led by special agents of the IRS Criminal Investigation.

Posted in Mail Fraud |