Four individuals have been charged in connection with an alleged nationwide abusive-trust tax shelter scheme, as reported in a superseding indictment returned by a federal grand jury in Denver. The indictment alleges that Marcia Predmore, Roderick Prescott, Suzanne Thompson, and Weldon Wulstein conspired with Larry Conner and Timothy McPhee to defraud the IRS by promoting, selling, and implementing the scheme.
According to the indictment, the defendants were involved in a scheme that aimed to help business owners avoid paying federal income taxes on their business income. Larry Conner and Timothy McPhee allegedly instructed clients to assign their income to sham trusts and a private family foundation to create the illusion that the income did not belong to them, ultimately evading taxes. Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, highlighted the seriousness of the charges.
The indictment further alleges that Roderick Prescott, through his business, The Stewardship Institute, played a key role in promoting the private family foundation as part of the tax shelter scheme. Prescott allegedly advised clients on how to use the funds donated to their foundations for personal use while disguising the transactions as charitable.
Suzanne Thompson and Weldon Wulstein were charged with assisting in the preparation of false income tax returns for clients using the abusive-trust tax shelter. Thompson operated a bookkeeping firm called The CFO Agency, while Wulstein operated a return preparation firm called Wulstein Financial Services. The indictment claims that Thompson's firm prepared financial statements for clients utilizing the scheme, which were then sent to Wulstein for the preparation of false tax returns.
If convicted, each defendant faces significant penalties, including up to five years in prison for conspiring to defraud the United States. Additionally, Conner, McPhee, Thompson, and Wulstein could face up to three years in prison for each count of assisting in the preparation of a false tax return, while McPhee and Predmore face a maximum of five years in prison for each count of tax evasion.
The investigation is being led by IRS Criminal Investigation, with Trial Attorneys Amanda R. Scott and Lauren K. Pope, along with Senior Litigation Counsel Corey J. Smith of the Tax Division, prosecuting the case. It is important to note that an indictment is merely an allegation, and all defendants are presumed innocent until proven guilty in a court of law.