Thursday morning, a federal judge ordered Kenneth Gaipa to spend two years in prison after he pleaded guilty in February to Social Security and bank fraud as well as tax evasion. Gaipa owns Kenneth G Rare Coins in Mishawaka and Goshen. Both stores remain open for business.
From 2008 to 2010, Gaipa filed false tax returns to the Internal Revenue Service … "significantly under-reporting" income for himself, his wife and his business.
He also 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."
In February, Gaipa admitted to a judge 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. 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.