Mike "The Situation" Sorrentino and his brother and manager Marc Sorrentino were indicted on Wednesday for tax fraud, but they're pleading innocence.
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According to prosecutors, The Sorrentinos stars are being charged with conspiracy to defraud the U.S. government after allegedly failing to pay federal income tax owed on $8.9 million worth of income from Mike's many "promotional activities" between the years of 2010 and 2012, E! News reported.
In addition to one count of conspiring to defraud the government, Mike and Marc are also reportedly being charged with two and three counts respectively of filing false personal tax returns, "which failed to report all of the income they received" over the course of two years.
Marc and Mike -- who starred on Jersey Shore and appeared on Dancing with the Stars -- were reportedly paid from $1,500 to $48,000 for each of Mike's "personal appearances at various venues, including nightclubs, bars, and liquor stores," totaling about $369,000 in cash.
The indictment additionally alleges the brothers claimed more than $5,104,000 in "false" or "inflated" business expenses, which included luxury cars, designer clothing and "personal grooming expenses."
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Paul J. Fishman, United States Attorney for the District of New Jersey, explained to E! News the men had "funneled company money into personal accounts."
Mike also allegedly never filed his 2011 tax return when he made nearly two million that year, according to the website.
Both guys pleaded not guilty to all counts in a New Jersey court and Mike's attorney, Richard J. Sapinski, told the website, "Michael denies the charges and believes that when all the facts come out it will be clear that he did not criminally violate the tax laws."
Mike and Marc each posted $250,000 bail and will reportedly be arraigned on October 6. They face many fines and serious time in prison if convicted. Each count could carry a $100,000 to $250,000 fine in addition to one to five years in jail.
Mike had just been arrested in June for getting into a physical altercation with his brother Frank at the family's Boca Tanning Salon and the case is still pending.
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The Sorrentinos just finished airing its first season earlier this month.
About The Author: Elizabeth Kwiatkowski