Federal prosecutors announced tax-evasion charges Tuesday against former Grateful Dead road manager Ronald L. Rakow and his girlfriend in connection with a scheme to conceal Rakow's income, much of which he earned working for convicted Ponzi scheme operator Reed Slatkin.
Assistant U.S. Atty. Michael R. Wilner said Rakow diverted $5.2 million that he received from Slatkin and other sources to his girlfriend, Denise Del Bianco, from 1998 through 2001.
At the time, the Internal Revenue Service was trying to collect $2.2 million in unpaid taxes from Rakow, according to an indictment returned last week. Del Bianco paid income tax on the funds, but the alleged diversion kept the IRS from seizing Rakow's cash and securities outright, the indictment alleged.
Rakow "falsely made it appear to the IRS that he had only minimal income and assets with which to pay the unpaid tax," the indictment said.