Hammond, LA – Michael Thiel, 66, a Louisiana criminal defense attorney, learned today that even lawyers aren’t above the law. Thiel was sentenced to 30 months in federal prison for a calculated decade-long scheme to evade paying approximately $1 million in income and employment taxes, the Department of Justice announced.
The scheme, spanning from 2003 through 2013, wasn’t a simple oversight. Thiel, operating a practice in Hammond, deliberately failed to file tax returns or make required payments despite a clear ability to do so. Instead, he hid his income and assets, utilizing a network of trusts and front individuals. The Thiel Family Trust, established in 2001 with Thiel as the sole beneficiary, fiduciary, and trustee, was the cornerstone of the deception. Two additional trusts, created in 2008 and nominally held by family members, further obscured his financial dealings.
The brazenness of Thiel’s actions extended to his personal residence. In January 2007, he used nominees to purchase a $435,000 property, then concocted a sham lease agreement to mask his ownership and shield it from IRS collection efforts. Over seven years, between January 2007 and January 2014, Thiel funneled $416,283 into the nominee account, directly funding the mortgage payments on the house – money sourced from the hidden trusts and other accounts deliberately kept in other people’s names.
“As a result of today’s sentence, criminal defense attorney Michael Thiel’s decade-long effort to evade paying his income and employment taxes is over, and he will begin serving time in prison,” stated Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Each April, the vast majority of Americans follow the tax law and pay their fair share. They have the right to expect that taxpayers who spurn these obligations will be held fully to account — no matter their profession, wealth or position in the community.”
IRS Criminal Investigation (IRS-CI) Chief Richard Weber was equally blunt. “Today’s sentencing of Michael Thiel is a strong reminder that payment of individual and business taxes is an obligation, not a choice,” Weber said. “When Mr. Thiel made the decision to evade paying taxes for himself and his business, he also made the decision to cheat his employees and other honest taxpayers. Investigation of employment tax fraud is a priority for the special agents of IRS-CI as our system of taxation depends on everybody paying their fair share.”
Beyond the prison sentence, Thiel was ordered to serve two years of supervised release and pay restitution to the IRS totaling $998,352. He pleaded guilty in December 2016 to evading federal income and employment taxes. The investigation was led by IRS-CI special agents, with prosecution handled by Assistant Chief Todd A. Ellinwood and Trial Attorney Michael Hatzimichalis of the Tax Division. This case serves as a stark warning: no amount of legal maneuvering can shield you from the consequences of tax fraud.
Related Federal Cases
- Mail Carrier Gets Over Nine Years for Tax Fraud Scheme · Alabama
- Baton Rouge Attorney Michael Thiel Pleads Guilty to Tax Evasion · Louisiana
- Rivera Gets Four Years for $2.7M Tax Refund Heist · Louisiana
- Hot Springs Man Gets 27 Months for PPP & UI Fraud · Arkansas
- Doctor Pleads Guilty to Fraudulent Tax Return Scheme · Louisiana
Key Facts
- State: Louisiana
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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