Bellevue Tycoon Hazelrigg Indicted for Tax Fraud and SSN Misuse

A former Bellevue-based developer and lender has been indicted for alleged tax evasion and social security number fraud, according to the Department of Justice USAO in Washington.

THOMAS R. HAZELRIGG, III, 67, of Rancho Mirage, California, is accused of spending millions on a lavish lifestyle, including private aircraft, high-end properties, and luxury items while failing to pay his taxes.

The detailed indictment by the grand jury last week alleges that Hazelrigg agreed to pay $533,454 in taxes for 1989-1991 but failed to do so. It also claims he evaded payment of his taxes owed for 1994 and funneled income from his businesses into secret accounts between 1997 and 2007.

According to the indictment, Hazelrigg used these accounts to finance a Bellevue penthouse, expensive artwork, high roller casino trips, country club memberships, private jet leasing, and race horses. The charges also include two counts of Social Security number misuse for opening bank accounts using his deceased father’s number.

Each count of tax evasion and social security number misuse carries a potential prison sentence of up to five years. Hazelrigg is set to appear in U.S. District Court in Seattle today at 1:30 p.m.

The investigation was conducted by the Internal Revenue Service Criminal Investigation (IRS-CI), and the case is being prosecuted by Assistant United States Attorneys Susan Loitz and Robert Westinghouse.