Vadnais Heights Investment Advisor Guilty of Tax Evasion

Published On: 31st October 2014

From the internet

He pleaded guilty to tax evasion, stating that he did spend his clients’ money on personal items instead of investing their funds.

The 43-year-old investment advisor committed these acts for tax years 2010 and 2011, according to documents that were filed in court. The investor would deposit the client investments, as well as funds from his father, into an account for Trust Financial Group. It turned out this was the man’s personal bank account. He then spent the money on himself, misappropriating assets that totaled well over $1 million.

The attorney’s office said that when the investor was confronted by his clients, he lied to them about the existence of their investments. The man also failed to file his personal income tax returns for tax years 2005, 2007, 2010, and 2011. A federal lien was filed against him for nearly $500,000.

The man will now have to pay restitution for the investment frauds to his father and his victims. He has also agreed to pay the IRS $1.2 million in restitution.

A special agent with the IRS Criminal Investigation St. Paul Field Office said that the IRS enforces U.S. tax laws, but they take special interest in the cases where someone takes what belongs to others for their own personal benefit. Those who violate the tax system are investigated by the Department of Justice and the IRS Criminal Investigation Division and the IRS does pursue individuals aggressively when they believe that those individuals owe money.

In another case, a Twin Cities man is facing multiple federal charges because it is believed that he cheated investors out of their money.

At the height of the recession, the man had taken individuals around St. Paul by bus and promised them that they could make a lot of money if they bought foreclosed properties. However, federal prosecutors say that the only one making money was the man because he would coax cash out of the investors.

One victim lost over $100,000 after investing in the man’s company. Prosecutors claim that the man lied to the investors and then used their money for his own purposes. He would then make payments to other investors in a way that is similar to a Ponzi scheme.

The man is already in prison for making terroristic threats and stalking individuals that he put on a hit list because he said they had something to do with his very painful divorce. So far in the investment scheme, there are over two dozen victims that have come forward to claim that they lost money before he was sent to prison for the threats and stalking. If he is convicted of the new charges, he could be sentenced to another prison term that would be served after his current term expires.

http://minnesota.cbslocal.com/2014/09/10/vadnais-heights-investment-advisor-pleads-guilty-to-tax-evasion/