GRIMY TIMES – In a dramatic turn of events, four individuals have been charged for their roles in an alleged nationwide abusive-trust tax shelter scheme, according to documents filed by the Department of Justice (DOJ) in Colorado. Larry Conner and Timothy McPhee, who had previously faced charges for conspiring with others to defraud the IRS, are now joined by Marcia Predmore, Roderick Prescott, and Suzanne Thompson.
The grand jury’s superseding indictment accuses Predmore, Prescott, Thompson, and Weldon Wulstein of collaborating with Conner and McPhee from February 2018 to September 2023 to promote and execute the fraudulent scheme. Thompson and Wulstein are also charged with aiding in the preparation of false tax returns for clients utilizing the shelter.
According to the indictment, the scheme was designed to assist business owners in evading federal income taxes by assigning their business income to sham trusts and a fictitious ‘private family foundation.’ Conner and McPhee are alleged to have directed clients to use these structures while retaining control over the funds. The tax returns prepared for these clients reportedly failed to report the assigned income.
Prescott, through his company The Stewardship Institute, is accused of promoting the foundation as part of the scheme, instructing clients on how to misuse its funds for personal gain and presenting it as a charitable donation. Thompson’s firm, The CFO Agency, and Wulstein’s Wulstein Financial Services are implicated in providing financial statements and false tax returns.
Each defendant faces significant penalties if convicted: five years in prison for conspiracy to defraud the United States, three years for each false tax return, and up to five years for tax evasion. The sentencing will be decided by a federal district court judge after considering various factors.
The Justice Department’s Tax Division has announced the charges, with IRS Criminal Investigation leading the investigation. If convicted, these co-conspirators will face the full weight of the law.
Related Federal Cases
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Key Facts
- State: Colorado
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: Official Source ↗
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