Colorado Man Pleads Guilty to $45 Million Tax Evasion Scheme

A Colorado man pleaded guilty to conspiring to defraud the United States, tax evasion related to promoting an illegal tax shelter, and wire fraud related to operating a fraudulent investment scheme, the Justice Department’s Tax Division announced Friday.

Timothy McPhee of Estes Park promoted a fraudulent tax shelter involving trusts and a private foundation, instructing clients to funnel income through the trusts to evade paying nearly all federal income taxes. The tax shelter caused a $45 million loss to the US in unpaid taxes. McPhee also used the scheme to conceal over $5 million of his own income and evade ...