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Tax Attorney and Insurance Agent Charged with Tax Fraud

Attorneydiction.com, – Tax attorneys and insurance agents tasked with promoting and selling tax evasion, were accused of sharing false data with insurance companies.

A federal grand jury in Charlotte, North Carolina today returned indictments charging two tax attorneys and an insurance agent with conspiring to defraud the United States and assist clients in filing fraudulent tax returns based on their promotion and operation of fraudulent tax havens.

On those charges, 2011 featured Michael Elliott Kohn and Catherine Elizabeth Chollet, both attorneys and St. Louis residents. Louis, Missouri, and David Shane Simmons, an insurance agent and broker from Jefferson, North Carolina, conspired to defraud the United States by promoting, marketing, and selling to customers a fraudulent tax scheme known to exist in the Gain Elimination Plan (“GEP”).

The suspect is believed to have organized the GEP to hide client income from the IRS by fraudulently transferring company fees through false reports and management fees. These fictitious fees and management fees are payable, in writing, to the limited partnership owned by the charity.

Apparently, Kohn and Chollet were accused of complicating royalties and administrative fees. In total, the suspects are estimated to have suffered tens of millions of dollars in tax losses to the IRS.

Kohn and Simmons were allegedly involved in an insurance company fraud scheme by providing false insurance data on behalf of their clients. False data must contain a false representation of the client’s income and insurance policy objectives.

In total, Kohn and Simmons are expected to lead insurance companies to issue more than $200 million worth of insurance policies based on fake application data. Simmons is said to have received large commissions for selling insurance policies, most of which were from Kohn and Chollet.

Simmons was also accused of filing fake personal tax returns for failing to disclose his business income and inflating his business expenses.

If convicted, Kohn, Chollet and Simmons face up to 5 years in prison each for conspiracy to defraud the United States and 3 years for each count of aiding and abetting to facilitate tax fraud.

Kohn and Simmons face a maximum of 20 years in prison for wire fraud, and Simmons faces a maximum of 3 years for multiple counts of filing a false individual tax return, if he is found guilty.

A federal district judge will decide on any sentence after considering the US Sentencing Guidelines and other areas of law. Assistant Deputy Attorney General Stuart Meter. Goldberg of the Department of Justice’s Tax Division, and US Attorney General Dena J. Judge for the Western District of North Carolina announced this.

The IRS criminal investigation is looking into the matter again. Attorneys Kevin Schneider and Todd Ellinwood of the Tax Division and Assistant United States Attorney. Caryn Finley of US Attorney for the Western District of North Carolina to hear back on the case.

An indictment is simply an accusation and all suspects are presumed innocent until a court finds them guilty beyond a reasonable doubt.***

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