The end of the week didn’t bring an end to tax fraud. There’s a lot to report as the fraudsters have been especially active.
First, let’s look at two former public servants. From outside of Atlanta comes the indictment of former state Representative Charles “Chuck” Scheid (R-Woodside) on charges of not filing a state tax return in 2005 and evading taxes in 2003. This isn’t the first time Mr. Scheid has had tax troubles; he had a tax lien of over $18,000 assessed against him in 2006. Reporters attempting to speak to Mr. Scheid discovered that his phone has been disconnected.
Let’s go to Shreveport, Louisiana where former Louisiana state Senator Charles Jones (D-Monroe) has been indicted by a federal grand jury on two counts of filing a false tax return and one count of tax evasion. Mr. Jones is accused of substantially understating his gross income in 2003 and of filing a false amended tax return for 1999. The indictment alleges that Mr. Jones took monies due him for legal fees and converted them to cashier’s checks which he used to buy property. It’s a great scheme if you can get away with it….
Next, we head to Salt Lake City where three individuals pleaded guilty to tax fraud. The three were part of a scheme that successfully (for awhile) kept $20 million out of the Treasury. Graham Taylor, an attorney from Tiburon, California, and two CPAs, Stephen Peterson, of Coalville, Utah, and Reed Barker, of Littleton, Colorado all pleaded guilty to tax fraud. Also under indictment are six other individuals; their trial is set to begin on Monday in Salt Lake City. The scheme involved a tax shelter called “The Hybrid,” and used Cayman Island nominees. The scheme alsoutilized offshore companies, foreign bank accounts, and fraudulent transactions. The six remaining defendants are looking at very lengthy terms at ClubFed if found guilty.
Finally, on a somewhat lighter note, Robert Sass of Tampa, Florida will spend a year and a day at ClubFed for his conviction on tax evasion. Mr. Sass owned a lingerie modeling business called Sophisticats, Inc. Mr. Sass’ business appeared, though, to be more prostitution and less modeling; he charged “room fees” in cash for his models. Somehow those fees didn’t make it on to his tax returns. Oops; illegal income is taxable. The judge noted that Mr. Sass’ relatively light sentence is due to his declining health (Mr. Sass is 70).