News: Criminal Tax Investigation

2025 CRIMINAL TAX INVESTIGATION AND SENTENCING CASES

Court Orders Florida Tax Return Preparer to Shut Down Tax Preparation Business: IRS alleged that AHS prepared customers’ returns that fraudulently claimed false or inflated residential energy credits, false fuel tax credits, fictious business losses.

Credit Suisse Services AG Pleads Guilty to IRS Tax Crimes, Signs a Separate Non-Prosecution Agreement Related to Tax Crimes in Singapore, and Agrees to Pay IRS $510M: On May 5, 2025, the U.S. Department of Justice announced that Credit Suisse Services AG pleaded guilty to conspiring with U.S. taxpayers to hide over $4 billion in offshore bank accounts, evading taxes from 2000 to 2015. The bank admitted to violating a 2014 plea agreement by continuing to assist tax evasion post-2014, particularly through undeclared accounts in Switzerland, Singapore, and Hong Kong. Methods included using coded accounts, nominee entities, and falsified IRS forms to conceal assets and income. Criminal tax Investigation into offshore account is ongoing.

California Man Pleads Guilty to Operating an Illegal Gambling Business, Tax Evasion, and Money Laundering: Chris King, a Santa Monica, California resident, pleaded guilty to operating an illegal gambling business, tax evasion, and money laundering. King ran an illegal bookmaking operation in Los Angeles County using a Costa Rica-based sports betting website, violating California and federal laws. Between 2019 and 2022, he concealed $13,586,493 in income from the IRS, including over $5 million in 2022 alone, causing a $3,804,218 tax loss. He laundered profits through real estate projects, gold, and financial accounts. King faces up to five years in prison for each count of tax evasion, illegal gambling, and unlawful internet gambling, and 10 years for money laundering. He agreed to a $10 million forfeiture and is scheduled for sentencing on September 9, 2025.

Accountant Pleads Guilty to $8M Tax Fraud: A Colorado accountant, Rodney Ermel, pleaded guilty to conspiring to defraud the U.S. and tax evasion. He collaborated with client Joseph LaForte and others to hide over $20 million in income through fraudulent accounting, including fake loans and deductions, underreporting taxable income from 2016-2018. This caused an $8 million loss to the U.S. Ermel is the fourth defendant to plead guilty in this tax scheme. Sentencing is set for September 3. The case is being investigated by the FBI, IRS, and FDIC.

Miami Return Preparer Agrees to Injunction and Disgorgement: A Miami tax return preparer, Nia Daniel, was barred by the U.S. District Court for the Southern District of Florida from preparing tax returns, owning any tax preparation business, or assisting in tax preparation until at least January 27, 2028. The court also ordered her to disgorge $446,000 in ill-gotten gains from her business, Nia Help Service LLC. Daniel consented to the injunction and disgorgement. The complaint alleged she prepared over 2,000 returns from 2020-2024, understating tax liabilities and inflating refunds by falsifying business expenses, claiming ineligible Work Opportunity Tax Credits, and fraudulently claiming other credits like the American Opportunity and Residential Energy Credits, often without clients’ knowledge. This caused a tax revenue loss of over $500,000 in 2023 alone

Payroll Services Company Owner Sentenced to Prison: Matthew Brown, a Florida payroll services company owner, was sentenced to 50 months in prison for failing to pay over $20 million in taxes withheld from employees’ wages and filing a false tax return. Operating Elite Payroll in Martin County, Brown withheld Social Security, Medicare, and federal income taxes but did not remit them to the IRS between 2014 and 2022. He used the funds to amass luxury goods, including 27 Ferraris. Brown was ordered to serve two years of supervised release, pay $22,401,585 in restitution, and a $200,000 fine. The case was investigated by IRS Criminal Investigation and prosecuted by the Justice Department’s Tax Division and the Southern District of Florida U.S. Attorney’s Office.

Defense Contractor’s Longtime Associate Pleads Guilty to Conspiracy to Defraud the United States: Thomas G. Ehr, a 63-year-old associate of a former defense contractor, pleaded guilty to conspiring to defraud the United States. From 2009 to 2022, Ehr worked for a contractor who owned 50% of a company supplying jet fuel to U.S. troops in Afghanistan and the Middle East. Ehr helped conceal the contractor’s ownership by falsely claiming the contractor’s wife founded the company, enabling the contractor to evade taxes on over $350 million in income, causing a $128 million tax loss to the U.S. Additionally, Ehr failed to file tax returns from 2010 to 2015 and pay taxes from 2010 to 2023, resulting in a $700,000 tax loss. He is the sixth defendant to plead guilty in this case and faces up to five years in prison for conspiracy and one year for tax charges, with sentencing pending.

Maryland Attorney Pleads Guilty to Not Paying Employment Taxes: J. McCollum Jr., a Maryland attorney, pleaded guilty to not paying employment taxes withheld from his law firm’s employees. From 1998 to 2024, McCollum, the sole owner of his College Park-based firm, operated under various names while controlling payroll and finances. He withheld Social Security, Medicare, and federal income taxes but frequently failed to remit them to the IRS over 24 years. Despite IRS collection efforts, including notices and levies, McCollum evaded payment, notably by transferring his business to a new entity in 2020. The case is prosecuted by the Justice Department’s Tax Division.