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PORTLAND (AP) – A Saco accountant charged with mishandling more than $2 million of his clients’ payroll taxes pleaded innocent Thursday in U.S. District Court.

John Baert has been charged with obstruction of the Internal Revenue Service and 11 counts of mail fraud. The government accuses him of failing to pay taxes for as many as 100 clients and keeping refunds that were meant for them.

Paula Silsby, the U.S. Attorney for Maine, said the IRS is owed at least $2 million, but the amount could grow as the investigation proceeds. She said Baert didn’t pay his own taxes after 1994.

Baert spoke only two words – “not guilty” – during Thursday’s hearing, when he was formally charged. He is free on $50,000 bond and is living in Florida.

A trial has been scheduled for March 1. U.S. Magistrate Judge David Cohen gave Baert’s lawyer, Martin Ridge, until Jan. 23 to file motions in the case. Each count against Baert carries a maximum penalty of 20 years in prison and a $20,000 fine.

Baert shut down his business, Harmon-Baert Associates, in November and was later arrested in Florida at his daughter’s home. He has since filed for bankruptcy.

Meanwhile, the Maine Restaurant Association is working with two Portland law firms to gather a list of the victims and the amount they are owed.

Even though Baert’s clients, including dozens of restaurants and other small businesses, gave him the payroll taxes, they are still responsible for any unpaid taxes.

Jeffrey Thaler, one of the lawyers working with the restaurant association, said some victims have lost records that they gave to Baert when he was the accountant for their business.

They have been able to recover copies by contacting the U.S. Attorney’s office, Thaler said.

AP-ES-01-09-04 0217EST


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