US Citizen Pleads Guilty to Tax Conspiracy

The Department of Justice and Internal Revenue Service-Criminal Investigation announce a guilty plea by Aaron Cohen of Encino, California. Mr. Cohen pleaded guilty in the U.S. District Court for the Central District of California to conspiracy to defraud the United States.

Mr. Cohen, who is a U.S. citizen, held bank accounts at two international banks headquartered in Tel Aviv, Israel, identified in court documents as Bank A and Bank B. One of Mr. Cohen's accounts was maintained at a Cayman Island branch of Bank A. The accounts were undeclared and held in the names of nominees to keep them secret from the U.S. Government. Mr. Cohen used the undeclared account in the Cayman Islands as collateral for back-to-back loans obtained from a Los Angeles branch of Bank A. Mr. Cohen's Cayman Island funds were not identified in the loan records kept at the Los Angeles branch of Bank A, concealing the fact that he was borrowing his own money, paying tax-deductible interest on the loans, and no reporting the interest earned in the Cayman Island on is income tax returns.

The full announcement from the Department of Justice can be found at

No Comments

Leave a comment
Comment Information

Contact the Law Office of Williams & Associates

For more information about our tax law services, or to discuss your tax matter, call our Sacramento office at (916) 488-8501 or toll free at (800) 684-7147. You may also send us an inquiry via email.

Contact the Firm

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Office Location:

3600 American River Drive, Suite 135
Sacramento, CA 95864

Toll Free: 800-684-7147
Phone: 916-488-8501
Fax: 916-488-8196
Sacramento Law Office Map