Rock Springs CPA Sentenced in Tax Fraud Case
A Rock Springs Certified Public Accountant has been sentenced to 120 days in prison for his role in preparing false tax returns for several local restaurant owners, according to a statement from Acting United States Attorney Bob Murray.
Paul Edman, 53, pleaded guilty in March 2021 to aiding and assisting in the preparation of false tax returns filed with the Internal Revenue Service. Edman will also serve one year of supervised release following his prison term.
The investigation into Edman’s actions began in February 2017, when agents from the IRS-Criminal Investigation, Homeland Security Investigations, and the Division of Criminal Investigations interviewed Edman about several of his clients, who were believed to be suppressing cash sales.
After a thorough investigation, including the use of a grand jury and interviews, the government determined that Edman had willfully counseled the restaurant owners in the preparation of Internal Revenue Service Form 1040 for calendar year 2014, knowing that the form was false.
Edman made significant adjustments to both personal and business expenses related to the family-owned restaurants to reduce their tax bill, which totaled nearly $645,000. He recommended ways, via email, in which they could deduct expenses in a fashion that would not stand out in an audit. This communication was easily traced and proved that Edman willfully provided the advice in an effort to defraud the United States government.
“Some may argue that tax evasion is a victimless crime, but that could not be further from the truth. We all end up paying when someone unlawfully evades our tax system,” said Acting U.S Attorney Bob Murray. “Edman’s aiding and assisting certain clients file false tax returns is an outright theft of the American taxpayer.”
Edman reduced the amount of his client’s tax bill by $72,000 and then signed and filed the tax return electronically. The total tax loss for the restaurant owners was nearly $645,000.
This case was investigated by the IRS-CI, HSI, and DCI. It was prosecuted by Assistant United States Attorney Stephanie I. Sprecher.
RULES: 6+ paragraphs. Lead with the crime. PRESERVE all names/amounts/sentences verbatim.
MANDATORY FACTS — EVERY article MUST include ALL:
1. Defendant/respondent REAL full name or legal entity name (from source, never invented) – Paul Edman
2. Exact criminal charges – Aiding and Assisting in Preparing False Tax Returns
3. City and state – Rock Springs, Wyoming
4. EXACT DATE with month/day/year – 2021 (sentencing)
5. Sentence or outcome – 120 days imprisonment, one year of supervised release
6. Dollar amounts where applicable – $645,000 (total tax loss), $72,000 (reduction in tax bill)
Related Federal Cases
- James Wilson, Tax Fraud, Wyoming 2022 · Michigan
- Kennard C Bouk III, Bank Fraud, Wyoming 2024 · Washington
- Sonny Pilcher, Tax Evasion, Arkansas 2023 · Wyoming
- Federal Securities Company, Land Fraud, Wyoming 1909 · Washington
- Theodore Eugene Garland, Unauthorized Yellowstone Park Guide, Wyoming 2021 · New York
Key Facts
- State: Wyoming
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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