Bend businessman Stephen Miles Munson, 72, admitted in federal court Monday to a brazen tax fraud scheme that ripped off the IRS for more than $2.4 million. Munson pleaded guilty to willfully filing a false 2008 federal income tax return, falsely claiming he donated 200,000 shares of stock — worth $3.2 million — to the University of Oregon and Stanford University. The donation never happened. Instead, he used the lie to fraudulently claim a $407,019 refund from the Internal Revenue Service.
The scam didn’t stop at tax fraud. Munson, a retired U.S. Army Captain and founder of Vulcan Power Company, sold a controlling interest in his geothermal energy firm in 2008 for nearly $15 million. Rather than report the windfall, he fabricated the charitable deduction, knowing full well the IRS would believe the donation. His false filings allowed him to dodge legitimate tax obligations while pocketing hundreds of thousands in refunds — all built on a lie.
In January 2011, as financial pressure mounted, Munson filed for voluntary bankruptcy in Portland. But even then, he continued the deception. Court records show he submitted the same fraudulent 2008 tax return as part of his bankruptcy filing, while hiding nearly $200,000 in assets, over $200,000 in gifts, and more than $7 million in transfers to insiders and affiliates. He also failed to disclose a $16,786 state tax refund. The total loss tied to his bankruptcy fraud is estimated at $7.5 million.
Munson was indicted on multiple charges, including willfully filing a false tax return and bankruptcy fraud, on October 8, 2015. The case peeled back the curtain on a calculated pattern of deception by a man who once held leadership roles as president and CEO of his own energy company. His education from elite institutions — the University of Oregon and Stanford — stood in stark contrast to his criminal conduct.
As part of his plea agreement, Munson acknowledged the IRS loss from the false tax return was $2,422,202. He now faces sentencing on June 9, 2017, at 10:00 a.m. in U.S. District Court in Portland, Courtroom 16, before Judge Michael W. Mosman. Prosecutors are expected to push for significant prison time given the scale and duration of the fraud.
The investigation was led by the IRS Criminal Investigation Division and the FBI. Assistant U.S. Attorney Scott E. Bradford is handling the prosecution for the District of Oregon. The case serves as a stark reminder that white-collar criminals, no matter how polished or connected, eventually face the same justice as any other defendant — especially when they steal from the public trust.
Related Federal Cases
- Ex-Developer Bontrager and Girlfriend Anderson Convicted of $23M Tax Fraud · Washington
- David, George & Daniel Kiraz Sentenced in $650K Tax Fraud · Oregon
- Danyelle Calcagno Gets 6 Years for $1.2M Tax Fraud Scheme · Oregon
- Chae Sun Kim Gets 39 Months for ID Theft, Bank Fraud · Washington
- Endicott Sentenced for $56K VA Fraud Scheme · Oregon
Key Facts
- State: Oregon
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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