Embezzlement Convict Failed to Report $5.3 Million in Income

The IRS proved that a wire fraud convict had more than $5.3 million in unreported embezzlement income from transfers he directed as trustee and fiduciary of two retirement plans, the US Tax Court said Thursday.

Matthew Hutcheson, who was sentenced to more than 17 years in a California prison, used assets from his G Fiduciary Retirement Income Security Plan (G Fid) and the Retirement Security Plan and Trust (RSPT) in order to pay for personal expenses, renovations for his family’s new home, and to acquire a resort and golf course, according to the Tax Court.

“It is well established that ...