Don P. Gooch, 64, and Gerard F. Scott, 38, were yesterday found guilty of conspiring to defraud the Internal Revenue Service out of more than $8 million, according to Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The duo was convicted on five counts following a three-day trial, including conspiracy and making false claims. U.S. District Judge Donald Nugent will sentence them on October 24th. Gooch, from East Cleveland, and Scott, whose last known address is in the same city, were both involved in the elaborate scheme.
Scott, using the Gerard Frank Scott Trust, filed false Forms 1099-INT with the IRS, claiming that the trust had paid millions of dollars in interest income to Gooch, his wife, and two other trusts they had purportedly set up. This deception led to $17,000,000 in taxes being withheld falsely.
Based on these falsified forms, false income tax returns were filed for Gooch, Scott’s wife, and the two other trusts, resulting in refunds totaling approximately $8,033,930. The conspirators initially succeeded in depositing over $2.5 million into accounts they controlled.
Scott and his wife used these funds to purchase a variety of luxury items, including gold and silver coins worth $100,000, a Range Rover for $93,000, and a Porsche for $164,000, among other expenditures. Scott also attempted to purchase a home in Aurora valued at $487,000.
This case was prosecuted by Assistant United States Attorneys John M. Siegel and Justin J. Roberts, following an investigation by the Internal Revenue Service – Criminal Investigation.
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Key Facts
- State: Ohio
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime|Organized Crime
- Source: Official Source ↗
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