James W. Millegan, aka JW Millegan, 65, of McMinnville, Oregon, was sentenced to 51 months in federal prison and three years’ supervised release. Millegan was also ordered to pay more than $2.5 million in restitution to the IRS and more than $1.4 million to 12 former clients.
“Tax evasion is a crime of greed that trivializes the duty all Americans share to pay their taxes. We take these crimes seriously and will continue working with our partners at the IRS to hold criminal tax evaders accountable,” said Ethan Knight, Chief of the Economic Crimes Unit for the U.S. Attorney’s Office.
“It’s been said that the difference between tax avoidance and tax evasion…is the thickness of a prison wall. Mr. Millegan is learning that firsthand today,” said Bret Kressin, Special Agent in Charge of the IRS Criminal Investigation (IRS:CI) Seattle Field Office. “While everyone is entitled to use legal means to reduce their tax liabilities, Mr. Millegan actively attempted to evade his taxes for many years. Instead of paying his fair share, Mr. Millegan lived lavishly at the expense of honest taxpayers. Today, he is answering for those crimes.”
According to court documents, Millegan owned and operated J.W. Millegan, Inc. (JWMI), a small, commission-based securities broker-dealer business that served clients in the Portland and Salem, Oregon metropolitan areas. From 1996 to 2016, the firm was Millegan’s only significant source of income. Millegan closed JWMI at the end of 2016, in part because a Financial Industry Regulatory Authority (FINRA) arbitration panel determined he had churned the investment accounts of several clients and fined him $450,000. Millegan filed for Chapter 13 bankruptcy almost immediately.
Over a seven-year period from July 2009 through September 2016 while operating JWMI, Millegan evaded payment of $2.5 million in income taxes due from 2006 through 2015. Millegan filed tax returns each year reflecting his true income, which sometimes exceeded $1 million, and the taxes he owed on that income, which typically ranged from $125,000 to $350,000. Despite these returns, Millegan usually paid almost no taxes when due.
Millegan was described as a prolific spender by personal assistants hired to pay his bills. He used the proceeds of his tax evasion to fund an extravagant lifestyle that included a $4.5 million home in Portland’s Dunthorpe neighborhood, a $1.3 million beach house in Gleneden Beach, Oregon, Rolls Royce and Bentley automobiles for everyday use, equestrian expenses like stabling and lessons, and an attempt to establish Wallace Bridge, a world-class equestrian competition center and resort near Sheridan, Oregon.
“This case highlights the consequences of tax evasion and the importance of paying one’s fair share of taxes,” said U.S. Attorney for the District of Oregon. “The IRS and our office will continue to work together to hold those who engage in tax evasion accountable for their crimes.”
The case was investigated by the IRS-Criminal Investigation and the Federal Bureau of Investigation.
The case was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Related Federal Cases
- Letitia James, Tariff Evasion, New York 2023 · Connecticut
- Winston Bontrager and Pauline Anderson Convicted of Tax Evasion, Se… · New Mexico
- Daniel James Junk, Federal Charges, Oregon 2023 · Oregon
- James Pavlounis, Social Security Disability Benefits Fraud, New Roc… · New York
- Letitia James Cracks Down on Cashless Ban, New York NY, 2024 · Washington
Key Facts
- State: Oregon
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News