The Brief
- Federal prosecutors charged four Texas residents with promoting a fraudulent trust shelter that hid over $1.5 billion in income and caused $200 million in tax losses.
- Promoters allegedly charged fees exceeding $100,000 for sham trusts, with one defendant using $2 million in investor funds to buy a Rolls-Royce and yacht.
- The four defendants face conspiracy, tax evasion, and wire fraud charges carrying sentences ranging from 3 to 20 years per count if convicted.
DALLAS – Four Texas residents have been indicted on federal conspiracy and tax charges for promoting an illegal tax shelter scheme that hid more than $1.5 billion in income and caused an estimated tax loss of over $200 million, federal officials announced Friday.
Four Texans indicted in $1.5B tax scheme
What we know:
A federal grand jury in Dallas returned the indictment on Sept. 22 against Duncan John MacDonald, Sarah Duren, Richard Ronald Cayce, and Thomas Weickgenant, according to U.S. Attorney for the Northern District of Texas Ryan Raybould.
Prosecutors allege the defendants sold clients a fraudulent trust scheme for fees that often exceeded $100,000. They allegedly falsely promised clients they could assign income to sham trusts to defer taxes indefinitely while retaining full control over their assets. Clients were also allegedly advised to backdate trusts and file amended tax returns seeking prior-year refunds.…