A Mississippi grand jury indicted a Florida man on charges of stealing customers’ funds and profiting from illegal tax avoidance.
According to court documents and the Department of Justice, Stephen T. Mellinger III was a trusted financial advisor with many clients across the United States. He is currently the subject of a private indictment accusing the tax professional of setting up an illegal tax shelter, siphoning off client funds and laundering money.
Florida man charged with illegal tax haven
The RS Criminal Investigation Service and the Defense Criminal Investigation Service are investigating the case. Acting Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Todd W. Gee, United States Attorney for the Southern District of Mississippi, whose team announced the indictment of Mellinger III.
The case against the individual dates back to 2013, when Mellinger III allegedly set up a tax shelter with an accomplice. The fraud was offered to customers as a deduction on their tax returns if they sent money to a company owned by the defendants.
The co-conspirators then “deducted the fees charged for the services and refunded the funds to bank accounts controlled by the customers,” according to the unsealed indictment. Even though tax shelter customers received refunds, Mellinger claimed the money was transferred to the company as a deduction on their tax returns and instructed them to show the deduction as a “loyalty” payment. has been done. Mellinger is said to have earned more than $3 million in fees from the shelter. ”
The grand jury’s decision is in addition to a 2016 federal allegation that Mr. Mellinger tried to seize funds from some of his clients. These individuals were the embodiment of a scam to defraud TRICARE by making false claims to U.S. Department of Defense health benefits programs.
The Justice Department further alleges that Mr. Mellinger stole funds from these parties under investigation, seized some assets, and viewed their plight as an opportunity to recover funds during the government’s review. There is.
After initially laundering the money, he used this stolen money to buy a house in Delray Beach, Florida.
He is currently charged with conspiracy to defraud the United States, aiding and abetting the preparation of false tax returns, conspiracy to commit wire fraud, conspiracy to commit money laundering, and money laundering.
Image: Pexel.
