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DAVENPORT, Iowa - A former Coralville attorney was indicted this week on three counts of filing false tax returns but a superseding indictment was filed Wednesday also charging him with 11 counts of mail fraud.
Dennis Bjorklund, 45, of Coralville, who lost his license in 2006 for an ethics violation, is charged with 11 counts of mail fraud and three counts of making and subscribing a false tax return, according to an indictment filed in U.S. Southern District Court.
Bjorklund, as a criminal defense attorney between Aug. 1, 2005 through Aug. 31, 2006, would encourage potential clients charged with drunken driving to make a voluntary charitable contribution to obtain a more "favorable resolution," according to the indictment. The specific charity recommended was "Re-Adapt."
Bjorklund on Sept. 2005 started an alleged non-profit organization, "Rehabiliative Enterprises for Alcohol and Drug Abuse Prevention and Training, also called Re-Adapt, according to the indictment.
As part of the scheme, another person, "S.N.," opened a post office box in Coralville under the name Re-Adapt and Bjorklund directed another person, J.K., to open a bank account in Wisconsin under the same name with an address of the post office box. Money orders, cashier's checks and personal checks were mailed to the post office box in Coralville and then later deposited in the Wisconsin account.
Checks were written and drawn on the Re-Adapt bank account and payable to entities owned and controlled by Bjorklund, including Bjorklund Law Firm, according to the indictment.
The false tax returns filed in 2003 for total income of $16,876 and in 2005 for $19,182. He also reported a total income loss in 2006 for $15,440. Bjorklund failed to report rental income received from the McKinley Building during those years, according to the indictment.