Minnesota Man Sentenced to Over Eight Years in Prison for Tax Fraud Scheme
A Minnesota man has been sentenced to 108 months in prison for wire fraud and assisting in the preparation of false tax returns. Beau Wesley Gensmer, of Prior Lake, was found guilty of developing a scheme to file 63 false tax returns that claimed fraudulently inflated tax refunds on behalf of unwitting taxpayer clients.
According to court documents and statements made in court, Gensmer hired two tax return preparers, including one based in Anchorage, Alaska, to whom he knowingly emailed false information, including fraudulent business losses and charitable contributions. The return preparers relied on the information provided by Gensmer and prepared and electronically filed false returns for each of his clients.
Gensmer charged his clients a commission of approximately 30% for each fraudulent refund. In total, Gensmer caused a tax loss to the IRS of approximately $6.7 million. As part of his scheme, Gensmer also provided “audit protection services” to clients who were audited by the IRS for the fraudulent tax returns he helped prepare. During these audits, Gensmer submitted false documents to the IRS.
In addition to his prison sentence, U.S. District Judge John R. Tunheim for the District of Minnesota ordered Gensmer to serve three years of supervised release and to pay $4,716,732.35 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Tax Division and U.S. Attorney Andrew M. Luger for the District of Minnesota made the announcement. IRS Criminal Investigation investigated the case. Trial Attorney Dominick Giovanniello and former Trial Attorney Ahmed Almudallal of the Tax Division prosecuted the case.
Gensmer’s scheme lasted from 2012 to 2018. His actions have resulted in significant financial losses for the IRS and the American taxpayer. This case serves as a reminder of the importance of honesty and integrity in financial dealings.
Key Facts
- State: Minnesota
- Category: Tax Fraud
- Source: DOJ Press Release â†â€â€
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