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.
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.
The backstory:
According to the indictment, Weickgenant, who filed false tax returns for clients, obstructed IRS audits by instructing clients not to speak with agents and advising at least one client to ignore a federal court order enforcing an IRS summons.
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