Louis Joseph Vadino, 75, of Ramona and formerly of Lake Forest, California, was convicted by a federal jury yesterday on charges of tax evasion and lying to the IRS after a years-long scheme to hide $2.1 million in property proceeds and flee the country using a fake passport. The verdict caps a sprawling federal case that exposed Vadino’s elaborate efforts to vanish while dodging more than a decade of tax obligations.
From 2002 to 2006, the IRS attempted to audit Vadino, who had purchased five residential properties in Lake Forest under a shell company between 1999 and 2002. He and his three adult daughters, along with his mother, lived in the homes. In fall 2006, Vadino directed one daughter to refinance three properties and sold a fourth, funneling $2.1 million in proceeds to a Greek bank account he controlled—all to evade tax liability on his 1999 income.
Vadino escalated his evasion tactics from 2006 to 2011, concealing assets, lying to IRS Criminal Investigation agents, placing property in others’ names, and leveraging offshore accounts to shield his wealth. When his court date arrived, he cut off his court-issued ankle monitor and vanished. In October 2014, he applied for a U.S. passport under someone else’s identity in a desperate bid to escape.
He was captured in December 2014 and has remained in federal custody since. At trial, prosecutors revealed how Vadino used family members and shell corporations to launder money and mislead investigators. U.S. Attorney Eileen M. Decker stated, “This defendant went to great lengths to hide income from the IRS and to attempt to escape justice. This case demonstrates the dedication of the IRS and the Department of Justice to ensuring that tax evaders face serious consequences for their actions.”
Acting Special Agent in Charge Anthony J. Orlando of IRS Criminal Investigation added, “Mr. Vadino hid assets from the IRS by placing funds and property in the names of family members and shell corporations, and funneling loan proceeds from those properties to an offshore bank account. Using intricate schemes and offshore bank accounts to commit tax evasion is a dangerous shell game played by swindlers like Mr. Vadino. Unfortunately for them, they don’t realize the odds are heavily stacked against them.”
Vadino has already pleaded guilty to failing to appear, conspiracy, two counts of passport fraud, and two counts of aggravated identity theft. Sentencing is set for February 6, 2017, before U.S. District Judge Andrew Guilford, where he faces a statutory maximum of 44 years and a mandatory minimum of two years in federal prison. Steven Ness, 44, of Long Beach, is also charged in connection with providing his father’s identity for the false passport; his case remains pending. The investigation was led by IRS Criminal Investigation, and the prosecution was handled by Assistant U.S. Attorneys Greg Staples and Daniel Ahn of the Santa Ana Branch.
RELATED: Louis Joseph Vadino Convicted in $2.1M Tax Evasion Scheme
Related Federal Cases
- Louis Joseph Vadino Convicted in $2.1M Tax Evasion Scheme · California
- Tax Fixer Gets 18 Months for $1.2M Fraud Scheme · Alaska
- Bellevue Tycoon Hazelrigg Indicted for Tax Fraud and SSN Misuse · Washington
- Clarence Hicks Indicted in Identity Fraud Tax Scam · Alabama
- Stockton Woman Faces 21 Fraud Counts in Unemployment and Tax Scams · California
Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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