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California tax crimes: Family inherited tax evasion problems

On Behalf of | Sep 11, 2013 | Tax Crimes |

When the founder of International Investment Advisors LLC passed away in 2001, he was worth approximately $24 million. What his family may not have realized at the time was that over half of that fortune was held in overseas bank accounts and taxes had not been paid on that money. Now, the son of the financier and three more of his family members were charged with tax crimes and conspiracy.

California readers may be interested to know that the son has now taken a plea bargain that will include restitution of nearly $600,000. The restitution is to be paid at sentencing, which has yet to be scheduled. He has also agreed to testify against a family adviser and says he regrets his part in the conspiracy. According to reports, the family adviser helped hide the money overseas and through bogus mortgages.

Even the U.S. Attorney in Manhattan that is on the case acknowledges that the family inherited this mess. The family adviser’s trial has not yet been set, but he has pleaded not guilty to the charges against him. The disposition of the cases against the other three family members is not known at this time.

It is one thing to be one of the minds behind a scheme, but to have inherited the issue is another thing entirely. It may have been difficult enough for this man’s son to lose his father, but to then find out that he was to stand trial for tax crimes could have been devastating. This man chose to take a plea bargain rather than go through what could have been an expensive and lengthy trial that may have put him prison. There was no indication as to whether his plea bargain includes time behind bars, but it is more than likely less than he would have spent had to been convicted at trial. When anyone in California find they are faced with charges such as this, every scenario has to be considered before making a decision on how to proceed.

Source: Bloomberg, Seggerman Pleads Guilty to Conspiracy in Tax Evasion Case, Christie Smythe, Aug. 28, 2013


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