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Tax Shelter Promoters Convicted of Conspiracy, Tax Evasion
A federal jury in Grand Rapids, Mich., convicted three tax shelter promoters, Peter J. Peggs of Prides Crossing, Mass., Robert D. Larsen of Winter Park, Colo., and Craig M. Stone, formerly of Fort Pierce, Fla., of conspiracy to defraud the United States and tax evasion.
According to the indictment, the defendants promoted, marketed, sold, and administered a fraudulent tax shelter scheme, selling sham ‘Loss of Income’ insurance policies to wealthy U.S. taxpayers. The scheme involved concealing facts and documents from the IRS, resulting in over $12 million in premiums being collected.
The jury found Peggs and Larsen guilty of tax evasion for misleading the IRS during its audit of Oskar René Poch’s tax returns for the years 1999 and 2000. They also lied to the IRS during its audit of Poch’s tax returns in 2002 and 2003.
Peggs and Larsen allegedly made material misrepresentations about the facts underlying the scheme to Poch’s attorney, who was preparing to contest the IRS audit determination in U.S. Tax Court.
Another individual, Bruce M. Cohen of Louisville, Ky., was convicted in federal courts in both Ohio and Kentucky in connection with his participation in this conspiracy. Cohen is currently serving a 37-month prison sentence for his conduct.
No sentencing date has been scheduled for Peggs, Larsen, and Stone. The conspiracy and tax evasion convictions carry a maximum punishment of five years in prison and a fine of up to $250,000.
The Justice Department and Internal Revenue Service announced the convictions, stating that the government will continue to unravel schemes promoted and used by taxpayers to evade their federal tax obligations.
Key Facts
- State: Federal
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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