Around and around it goes. A Florida financial advisor rolled the dice on fraudulent tax shelters, filing false income tax returns, and money laundering—and he appears to be heading for a reckoning.
Stephen Mellinger is a securities broker who has unfortunately recently been indicted by a federal grand jury in Mississippi. Being in a position to advise and direct the monies of clients, Mr. Mellinger appears to have taken full advantage of his role—and then some.
As far back as 2013, Mr. Mellinger and a small cadre of accomplices developed a scheme to defraud the IRS by cycling money from the accounts of clients through an illegal tax shelter. Mr. Mellinger would then return the money to the client accounts less a percentage so that his client could claim it as a deduction on their tax return. Mr. Mellinger easily earned about $3 million by cycling money through his tax shelter according to the indictment.
By 2016, Mr. Mellinger sought in on a healthcare fraud being conducted by some of his clients against healthcare benefit programs, notably TRICARE, the Department of Defense program. When his clients flowed their ill-gotten proceeds from the healthcare fraud through Mr. Mellinger’s tax shelter, he skimmed some of the funds and laundered them, eventually using the proceeds to buy Florida real estate.
The long-term series of alleged tax frauds led to charges against Mr. Mellinger that include conspiracy to commit wire fraud, conspiracy to commit money laundering, money laundering, preparation of false tax returns, and conspiracy to defraud the U.S. If convicted on the charges, he could receive a maximum of almost 70 years in prison.
The indictment was brought after an IRS criminal tax investigation and represents the moment when charges landed against the defendant. Hopefully, Mr. Mellinger has retained high-caliber criminal tax defense attorneys to defend him against these allegations. His future largely depends on the skill of the defense counsel and creating a case that can challenge the significant charges returned by the grand jury.
If you are involved in tax fraud such as offshore shelters, money laundering, or employment tax fraud—consider the likelihood that eventually, allegations like those facing Mr. Mellinger will be coming your way. The faster you get advice from an experienced criminal defense tax lawyer, the greater your options in trying to avoid the loss of your business and liberty for years to come.
Concerned about tax shelters and compliance? Speak with our tax legal group today
Serving local and international clients from offices in Chicago and Cleveland, the legal team at Robert J. Fedor, Esq., LLC delivers strategic representation and guidance with compliance questions, tax litigation, or criminal tax defense. Call 440-250-9709 or contact us online today.
