A scheme to hide assets may start out with the primary goal of placing assets beyond your reach. The scheme may then develop the secondary goal of hiding assets from tax authorities/committing a tax fraud. To increase your chances of a successful asset search, you should therefore look for indicators of tax fraud. A good list of the indicators is published by the IRS at IRM 188.8.131.52, Fraud Handbook – Indicators of Fraud.
Just one indicator listed at the Fraud Handbook is “deposits into bank accounts under nominee names.” This means secretly depositing money into bank accounts titled in the names of intermediaries (i.e. nominees). “Red Flags & The IRS Search For Attorney Memmott’s Assets” analyzes the tax fraud case against the now-disbarred California attorney Orion Memmott. Prosecutors accused Mr. Memmott of hiding assets from the IRS by titling real estate & bank accounts in the names of nominees.
In USA v. Beverely, Docket No 17−cr−60093, prosecutors similarly accused Timothy J. Beverley of hiding assets from the IRS. Prosecutors claimed Mr. Beverley of Pompano Beach, Florida failed to report to the IRS $2.2 million he allegedly stole from his employer. Page 4 ¶14 (b) of Mr. Beverley’s superseding indictment said Mr. Beverley hid his stolen money in bank accounts titled in the names of nominees. Mr. Beverley supposedly committed the theft & alleged tax fraud while on supervised release from his earlier money laundering case. In the laundering case, prosecutors accused Mr. Beverley of hiding the illicit proceeds of a bank fraud. Mr. Beverley apparently hid the proceeds of the bank fraud by washing them through bank accounts belonging to the NASCAR team Mr. Beverley once owned—Tyler Jet Motorsports.
Copyright 2018 Fred L. Abrams