Thomas Huling, Ponzi Scheme and Tax Evasion, Rhode Island 2023

Thomas Huling, Ponzi Scheme and Tax Evasion, Rhode Island 2023

PROVIDENCE, RHODE ISLAND - A Rhode Island man was sentenced to eight years in prison for running a decade-long Ponzi scheme to defraud investors and to evade his taxes, announced United States Attorney Zachary A. Cunha and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.

Thomas Huling, formerly of West Warwick, orchestrated a scheme to defraud investors by promoting several investment projects, including high-yielding bond trading platforms, a car emissions reduction technology and an online advertising and marketing company. He solicited funds for these investments by representing, among other things, that the investments would achieve quick and substantial returns with little or no risk. However, in reality, Huling diverted investor money to fund a lavish lifestyle that included high-end vehicles, membership and golf fees at multiple country clubs, gambling, clothing, restaurants, vacations and travel, as well as improvements to his residence.

To conceal his personal use of the funds, Huling created and used multiple shell companies, opened over 50 bank accounts and engaged in convoluted financial transactions between accounts. When concerned investors contacted Huling about the status of their investments, he lulled them with false excuses and promises, and at other times avoided their calls. To appease certain early investors, Huling used money raised from new investors to pay them off.

While Huling was defrauding his investors, he was also evading his taxes. Between 2009 and April 2018, Huling reported no taxable income, paid no income taxes and for certain years filed fraudulent individual and corporate income tax returns. To hide his income, Huling used nominee bank accounts and paid for personal expenses using cash and corporate debit cards. He also falsified the books and records of his companies by recording sham loans, titled personal assets in the name of shell companies and made false statements to IRS special agents.

In addition to his prison sentence, U.S. District Court Judge Mary S. McElroy ordered Huling to serve three years of supervised release and to pay restitution to the United States and victims of the fraud in an amount to be determined later.

The IRS Criminal Investigation and the FBI investigated the case. With his sentence, Huling will face the consequences of his decade-long scheme that not only destroyed the trust of his investors but also evaded taxes owed to the government.

Defendant: Thomas Huling

Criminal Charges: Running a decade-long Ponzi scheme to defraud investors and to evade his taxes

City and State: Providence, Rhode Island

Exact Date: 2023 (no specific date given in the source)

Sentence: Eight years in prison, three years of supervised release, and restitution to be determined

Source: https://www.justice.gov/usao-ri/pr/rhode-island-man-sentenced-eight-years-prison-defrauding-investors-and-tax-evasion