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Crime & Safety

Former Glencoe Resident Charged With Tax Evasion

Real estate developer allegedly failed to pay more than $1.75M due the IRS dating from 2004.

A former Glencoe resident and real estate developer was arrested Thursday on three counts of federal tax evasion.

Robert D. Falor, chief operator and manager of The Falor Companies Inc., pleaded not guilty to charges that he failed to pay more than $1.75 million in taxes from 2004 to 2007.

U.S. District Judge Virginia Kendall arraigned Falor, now in Chicago, and scheduled a detention hearing for Friday morning.

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Earlier Police Stories:

Falor’s ventures focused on converting hotels in Chicago to condominium-hotels. His firm operated multiple condo-hotel ventures in the mid-2000s, including the Blake Hotel in Chicago and the Tides Hotel in Miami Beach. He also created several companies to own and manage the affairs of the condo-hotels.

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Falor’s condo-hotels worked almost like timeshares, selling rooms to individuals who could then rent out the units.

The indictment alleges that Falor failed to file certain federal individual income tax returns and under-reported his income in others. His 2004 tax return, not filed until October 2007, showed a tax due amount of $2,102, when he actually owed $189,246.

The government is being represented by Assistant U.S. Attorneys Ryan S. Hedges and Barry Jonas.

Each count of tax evasion carries a maximum penalty of five years in prison and a $250,000 fine. Among the other fines, a defendant convicted of tax offenses faces mandatory costs of prosecution and a civil fraud penalty of 75 percent of the underpayment plus interest.  

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