A federal grand jury has indicted Drs. David Leon Fredrick and Patricia Lynn Hough alleging that they conspired to defraud the Internal Revenue Service (IRS) through a series of offshore accounts, using the funds buy homes in Florida, North Carolina and an airplane among other things.
The couple allegedly tried to conceal millions of dollars in assets and income in offshore bank accounts at UBS and other foreign banks, the Department of Justice (DOJ) and the IRS announced Thursday.
The indictment alleges that the couple conspired with a Swiss citizen, Beda Singenberger, who is also under indictment, and a UBS banker to defraud the IRS. The couple carried out the conspiracy by creating and using nominee entities and undeclared bank accounts in their names and the names of the nominee entities at UBS among other foreign banks to conceal assets from the IRS. Among the assets and income were proceeds from real estate associated with medical schools in Saba, Netherland Antilles, where they served on the Board of Directors, and shares they owned in the medical school on Nevis, West Indies. The real estate was sold for more than $33 million, all of which was deposited into one of their undeclared accounts in the name of a nominee entity.
The pair were indicted by a federal grand jury in Fort Myers.
To read the press release, click here.