Grimy Times
A former casino owner from Henderson, Nevada, has been sentenced to 72 months in prison for his role in a massive tax fraud scheme that bilked millions from unsuspecting customers. Alan Rodrigues, the former general manager and executive vice president of the now-defunct National Audit Defense Network (NADN), was ordered to pay more than $35 million in restitution to his victims.
According to court documents, Rodrigues and two other defendants, Weston Coolidge and Joseph Prokop, were convicted of conspiracy to defraud the United States, aiding and assisting in the preparation of false income tax returns, and mail fraud. The evidence presented at trial showed that the defendants promoted and sold a product called Tax Break 2000, which purported to be an online shopping website that would allow customers to claim legitimate income tax credits and deductions under the Americans with Disabilities Act (ADA).
However, the websites provided to customers made little to no money from sales commissions, and the defendants knew that they did not entitle the purchaser to either a tax credit or any deductions. Despite this, the defendants taught and directed the tax return preparers working for NADN to prepare thousands of tax returns for customers, resulting in a total loss of more than $36 million and an intended tax loss of over $60 million.
The scheme was uncovered in 2014, when a six-week jury trial revealed the extent of the defendants’ deceit. Rodrigues and Coolidge were each convicted of two additional counts of aiding and assisting in the preparation of false income tax returns, while Prokop was sentenced to 18 months in prison for his role in the scheme.
The sentencing of Rodrigues, Coolidge, and Prokop serves as a reminder that business professionals who engage in tax fraud will be held accountable for their actions. ‘Business professionals who design, market and sell fraudulent tax products by criminally exploiting select provisions of the tax code will be prosecuted to the full extent of the law,’ said Acting Assistant Attorney General Caroline D. Ciraolo.
The case is a stark reminder of the importance of vigilance when it comes to tax-related scams. The public is urged to remain vigilant and report any suspicious activity to the authorities. In this case, the authorities were able to bring the perpetrators to justice, and the victims will receive the restitution they are owed.
The sentencing of Rodrigues, Coolidge, and Prokop is a significant victory for the victims of the tax fraud scheme and a reminder that those who engage in such activities will be held accountable for their actions.
Key Facts
- State: Nevada
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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