SOUTH BEND – The owner of Kenneth G. Rare Coins pleaded guilty Friday afternoon to welfare and bank fraud and tax evasion.
Kenneth Gaipa, 43, entered the admission of guilt to a federal judge.
In 2008, 2009 and 2010, Gaipa failed false tax returns to the Internal Revenue Service – “significantly under-reporting” income for himself, his wife and his business. He admitted to skimming cash from the business and “failed to disclose to [his] tax return preparer that significant amounts of his personal expenses were run through the business as “business expenses.”
Gaipa also admitted to the judge that he lied to the Social Security Administration, saying he hadn’t worked between February 2006 and June 2011 when, in fact, he was earning “substantial profits” at his business, Kenneth G. Rare Coins and Estate Jewelry in Mishawaka and Goshen. He did this so he could continue to receive Social Security Disability payments in an amount greater than was due and when no payment was authorized.