Taxable Talk

Dr. Patricia Hough was a successful entrepreneur. She owned two medical schools in the Caribbean. That’s the good portion of this story. It’s what she did with the profits of the business (and the sale of the business)–or better put, what she did not do–that was the cause of the problem.

As for the bad, there’s plenty. She (and allegedly her husband) created nominee accounts at UBS and other foreign banks; of course, that income didn’t find its way to her tax return. Her half of the sale of the medical schools also didn’t find its way to the tax return. Those nominee accounts were at foreign banks; she didn’t file a Report of Foreign Bank and Financial Accounts (FBAR). And the money was used for conspicuous consumption: an airplane and three homes.

Last year she was found guilty of filing three false tax returns and conspiring to defraud the IRS. She was sentenced on Friday to two years at ClubFed, three years of supervised release, and must make restitution of $15,518,382.

This entry was posted on Sunday, May 11th, 2014 at 7:08 pm and is filed under Tax Fraud. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.