A Prior Lake man is headed to prison after pleading guilty to a tax fraud scheme that caused a whopping $3.5 million in losses to the IRS. Beau Wesley Gensmer, a Minnesota resident, was charged with wire fraud and assisting in the preparation of a false income tax return.
According to court documents, Gensmer devised a scheme to assist in the preparation of at least 50 false tax returns from 2012 to 2018. He would hire a tax return preparer in Anchorage, Alaska, and provide them with knowingly false information, including fraudulent business losses and charitable contributions, to prepare and electronically file false returns for each of his clients.
Gensmer charged his clients a commission of approximately 30% of each fraudulent refund. The return preparer relied on the information Gensmer provided to prepare the false returns. The scheme was uncovered, and Gensmer is now facing the consequences of his actions.
The tax loss to the IRS is estimated to be at least $3.5 million. Gensmer is scheduled to be sentenced on May 7 and faces a maximum penalty of 20 years in prison for wire fraud and three years in prison for assisting in the preparation of a false tax return.
U.S. District Judge John R. Tunheim for the District of Minnesota will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg and U.S. Attorney Andrew M. Luger made the announcement.
The IRS Criminal Investigation is investigating the case. Trial Attorneys Ahmed Almudallal and Dominick Giovanniello of the Tax Division are prosecuting the case.
Gensmer’s actions demonstrate a blatant disregard for the law and the trust placed in him by his clients. His scheme has caused significant financial losses to the IRS and highlights the importance of vigilance in preventing tax fraud.
Related Federal Cases
- Amy Evangelista Sentenced to 18 Months for Tax Fraud Scheme, Lathro… · California
- Aaron A. Johnson, Conspiracy to Commit Fraud on Federal Crop Insura… · South Dakota
- Richard Lee Derrick Jr. Gets 24 Months for Tax Fraud Scheme · Hawaii
- Amalia Ralar Sentenced for Massive Tax Fraud Scheme · Hawaii
- Fullerton Tax Preparer Pleads Guilty in $1.1M Fraud Scheme · Texas
Key Facts
- State: Minnesota
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News