KDVR – A resident of Ests Park passed on Thursday To the charges associated with his plan, which lasted for years, which defrauded the United States government with millions of dollars.
On Friday, the US Department of Justice announced that Timothy Makfee acknowledged that he was guilty of conspiring to defraud the United States, tax evasion and fraud in wires. The first two charges are related to its promotion and use of an illegal tax shelter, while the third is related to its operation of a fake investment scheme.
The administration said that from 2018 to 2023, it encouraged me to use a crushing tax shelter for taxpayers throughout the country. The Ministry of Justice said that the tax shelter in McVy consists of three boxes, confidence and a private family institution. The administration also said that McPhee will teach customers who bought the tax shelter how they could use funds to evade payment of federal income taxes on almost all of their income.
The administration said it was able to instruct customer to fraud and tax evasion, and as a result, customers paid taxes on about 2 % of their income.
In his call, Mcific said that he gave directives to customers who know that he contradicts directly with the directives of the Tax Authority, and that he “deliberately ignored warnings from accountants and lawyers that the tax shelter was fraudulent and illegal.”
The Ministry of Justice said that the tax shelter caused the United States to lose about 45 million dollars of unpaid federal income taxes.
It was also claimed that McVA used the tax shelter to hide more than $ 5 million from the tax authority he obtained between 2016 and 2021.
The Ministry of Justice also said that McPhee promoted and operated the fraudulent investment scheme between January 2023 and May 2024 called the “cash flow fund for the return on investment”. He told investors that the fund was an opportunity to earn 3 % monthly batches on major investments. He told investors that the third party borrower will participate in the trading of foreign currencies and will generate monthly returns.
The Ministry of Justice said that due to this plan, investors sent McPhee more than $ 8 million, which was placed in bank accounts he controlled.
“In fact, however, McPhee did not send investor money to the borrower as he promised,” the Ministry of Justice confirmed in a press statement. “Instead, use investor money to make 3 % monthly payments for investors. The investor’s money was spent on his personal expenses and investments, including by sending more than two million dollars of investor money to a bank account that he carries in the name of one of his funds.”
McPhee is scheduled to be sentenced on October 23 and faces a maximum of five years in prison for conspiracy against the United States, and a maximum of five years in prison due to tax evasion, and the maximum of 20 years in prison for fraud in wires.