Thomas Selgas, Tax Evasion, Texas 2020

Thomas Selgas, a Texas inventor, and his attorney, John O. Green, a former member of the Idaho legislature, were sentenced yesterday in a federal court in Dallas, Texas, for their roles in a conspiracy to defraud the United States and evade income taxes.

Selgas was sentenced to 18 months in prison, while Green received a six-month sentence. In addition to the prison terms, U.S. District Judge Karen Gren Scholer ordered Selgas to serve three years of supervised release and to pay approximately $1,323,776.92 in restitution to the United States. Green was also ordered to serve three years of supervised release and to pay approximately $679,501.50 in restitution to the United States.

The conspiracy, which was uncovered by the IRS, involved Selgas and Green using Green’s Interest on Lawyers Trust Account (IOLTA) to conceal Selgas’s income from the IRS. Selgas deposited proceeds from the sale of gold coins and other income into Green’s IOLTA between 2007 and 2017, and then used the account to pay his personal expenses, including credit card bills.

The scheme also involved filing a false tax return on behalf of MyMail Ltd., an intellectual property development and licensing partnership co-founded by Selgas. The return omitted a substantial portion of the partnership’s actual income, further evading taxes owed to the United States.

Selgas and Green were convicted by a jury in Federal District Court in Dallas on January 15, 2020, after a trial that highlighted the complex scheme they had concocted to evade their tax obligations.

The investigation into the pair’s activities was led by the IRS, with assistance from the U.S. Attorney’s Office for the Northern District of Texas. The case was prosecuted by Trial Attorneys Robert Kemins and Mitchell Galloway of the Tax Division.

With the sentencing of Selgas and Green, the U.S. government has taken a significant step in holding accountable those who attempt to cheat the system and avoid paying their fair share of taxes.

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