A federal grand jury indicted Gantcho Zagorski, a 59-year old U.S. dealer in ancient coins, on three counts of aiding and assisting in the filing of false income tax returns, the FBI announced Tuesday.
Zagorski sold ancient coins online via EBay under the name Diana Coins and Paganecoins, the indictment states. Diana Coins LLC was founded in 2008 in Hackensack, N.J., public records show. Records also list Zagorski as the owner of Balkan Import Auto Sales, Inc. in Venice Florida, where he has lived. He currently resides in Chicago, authorities said. Calls to his federal public defender attorney were not returned late Thursday.
The indictment alleges:
Zagorski owned and operated a business that sold ancient coins to domestic and international customers, primarily on eBay, from his residence in Hackensack. Zagorski, along with his wife and, at times, his daughter, operated the coin-selling business under the names Diana Coins, Paganecoins, and Diana Coins LLC. For calendar years 2006, 2007, and 2008, Zagorski provided his tax preparer with false and fraudulent information by understating the amount of gross receipts and sales earned by his business. Zagorski then caused to be filed with the IRS those federal income tax returns for 2006, 2007, and 2008 containing that false and fraudulent information.
The indictment also says that Zagorski claimed gross receipts and sales of $230,000 – $314,000 between 2006 and 2008, amounts the indictment claims were “underreported.” Each of the three tax counts carries a maximum penalty of three years in prison and a $250,000 fine.
The indictment does not address the legality of the coins he was selling. Here is the complete indictment: