Tax Crime Junkies

Episode 5: The Tragic End of a Career: How One Man’s Retirement was Derailed by Tax Fraud

Today’s episode reveals the curious case of Larry Couchet, a once well-respected CPA in Ohio whose retirement was derailed by tax fraud. Larry was the president and majority shareholder of an accounting firm in Ohio and had a great reputation in his community. He was 59, nearing retirement, and all was well until he began helping his clients file false personal income tax returns. This went on from 2006 to 2010 until the IRS got involved. In May of 2014, the IRS charged four members of the Field Group, Larry’s clients, and by extension indicted Larry as well. In spite of being charged for tax crimes and sentenced with 12 months and one day in prison along with a lengthy supervised release and fines, Larry is back practicing as a CPA after reinstatement to practice. 
 
Talking Points: 
Larry Couchet and his career prior to getting involved in tax fraud
The amount of records Larry gained access to through Cadillac Ranch Restaurants 
The warehouse jointly owned between Larry and his client JHF Property Holdings
The discrepancies in the Field Groups accounting books 
The previous criminal records of several of Larry’s clients
Larry’s cooperation with the investigation and self-sacrifice of his accounting license 
The confusing nature of this case, mainly why would Larry knowingly commit these tax frauds when they were of no benefit to him?
The question of whether this is a case of negligence or purposeful crime
How Larry returned to practicing as a CPA in spite of having been imprisoned for tax crimes
Quotes
“You cannot write off your federal taxes on your federal income tax returns.” (10:03-10:09 | Dom)
“You simply can't put a wall between what you know and preparing the tax return. It's not possible.” (11:34-11:42 | Tom)
“I find it hard to believe personally that somebody would intentionally commit tax evasion or tax crimes for no benefit to themselves. It's just in my mind, it doesn't add up.” (19:06-19:21 | Tom)
“The best option for any tax professional who notices their client has outright crooked books or suspicious transactions is simply withdraw from working with that client. You don't have to report it to the IRS. All you have to do is let the client know of what errors you've spotted on their returns or documents. Keep a record of what you advise them and move on.” (35:46-36:26 | Tom) 
 
 
Podcast production and show notes provided by HiveCast.fm

Episode 4: Greed and Deceit: The Moral Failures of an Accountant Turned Criminal

Today’s episode unveils the moral failures of an accountant turned criminal. Paul Henri Harleman was a contract bookkeeper in Hawaii who used his personal relationships to defraud his clients out of over 1.2 million dollars over a four year period. Paul started off with a fantastic reputation as a guy well trusted by his clients. It all changed when he became greedy and decided to deceive his clients, many of which were small business owners and nonprofit organizations. He opened up an LLC called Pacific Media Group, named as such because it was similar to the name of one of his client’s vendors. This allowed him to charge his client’s credit card and divert the money into his LLC’s bank account. Once his initial scheme was successful, Paul was emboldened to take it even further, committing 6 counts of wire fraud and 8 counts of money laundering before finally being arrested.
 
Talking Points:
The story of Paul Henri Harleman and how he used his intimate knowledge of his clients’ businesses and accounts to defraud them for years undetected
Paul’s payroll scheme through his LLC
Similar cases of bookkeepers abusing their relationships with clients
Common fraud schemes used to steal from small businesses
Internal control measures small business owners can implement to protect themselves from fraud
The value of an audit trail and creating deterrents 
Why small businesses need to establish a Code of Ethics for all employees to be trained on
An example of one of Paul’s actual emails to the judge assigned to his case
The conclusion of Paul’s story, his final charges and sentencing 
Podcast production and show notes provided by HiveCast.fm

Episode 3: From Log Homes to Lockup: The Unbelievable Tale of Martin Birk

Today’s episode reveals the unbelievable tale of Martin Birk, a Colorado businessman who went from log home salesperson to tax protester, and ultimately was sentenced to 15 years in prison. Birk started off as an honest businessman, filing his taxes each year, and running a thriving log homes business. When he took a business class at a local college, he got the wrong idea from something said by one of his professors about making sure tax laws apply to your specific income. He interpreted this as an indictment of the entire U.S. tax system and started to get involved with some really shady tax protester organizations like We The People. 
 
Talking Points: 
How Birk went from businessman to tax defier
Form 31.75 and Birk’s reactions to being subsequently ignored by the IRS
Tax Protester Organizations like We The People and the dangerous messages they spread
Birk’s threatening letters to the IRS in retaliation to them pulling $16,000 from his account and the subsequent SFR enacted by the IRS 
The initial charges and sentencing that causes Birk to flee Colorado for Florida with a car full of illegally obtained weapons
Evidence photos of the small militia Birk acquired
The Doctrine of Fugitive Disentitlement and how it revoked his chance for appeal
Birk’s ultimate sentence of 15 years in prison and how it more than doubled his initial sentence
Podcast production and show notes provided by HiveCast.fm
 
 

Episode 2: The Chrisley Con: How a Lavish Lifestyle and Fake Loans Led to Tax Fraud and Bankruptcy

Today’s episode reveals that Julie and Todd Chrisley, a couple with a successful TV show, lived a lavish lifestyle using loans they took out illegally from banks. They defrauded banks by creating fake documents and claiming to have money in other banks. They spent about 36 million dollars on luxury trips, hotels, wear, and apartments. Whenever a loan was due, they would defraud another bank and use the loan to pay back the previous one. Todd eventually filed for bankruptcy, walking away from about 20 million dollars in loans. Additionally, the couple failed to pay taxes owed from 2009 and 2013-2016 by registering their company under different names and creating false documents.
 
Talking Points:
Asset Management real estate firm between couple and third party Mark Braddock to manage and sold foreclosed properties and earned millions
Created fabricated bank documents as early as 2007 to obtain loans from community banks
Emails obtained by the FBI revealed their fraudulent activities
We also discuss the legality of Income Shifting
The Chrisley’s received their pay from their asset management company
They split the money and sent it to Chrisley and Company to avoid taxes
The assignment of income doctrine holds that a taxpayer may not avoid tax by assigning the right to income to another
Misuse of Funds
Chrisleys spent money on travel, properties, clothes, and luxury items
Repeated loan frauds to pay back loans due
Targeted Georgian community banks because it made the loan frauds easier
Chrisley’s had financial difficulties and became insolvent
Todd filed for bankruptcy and walked away from 20 million dollars total loans
Mark and the Chrisleys ended their partnership right before the lawsuit in 2012
SODDI Defense
Chrisleys claimed Mark Braddock was responsible for all the fraud that’s coming up in court
Mark got immunity for cooperating with the FBI and IRS
Emails showed Todd gave express instructions to Mark to use the accountant's stationary and signature
Todd and Julie's company, 7Cs Productions
Todd and Julie's control over the company
The couple's tax default in 2009
Listing Julie as the sole owner to evade IRS liens
 
False tax filings and evasion
Filing as married filing separately
False tax filings in 2011-2013
Collection status and Todd's bankruptcy proceedings
Hiring accountant Tarantino
Fabrication of documents and further tax evasion
Warning from Tarantino about IRS investigation
Fabrication of documents to make Julie's mother the sole owner of 7Cs Productions
Creation of new bank account for 7Cs to evade taxes
Todd's audacious claim on radio interview
Continued borrowing and false representations
The Chrisleys' borrowing activities
Loan taken out in March 2017
False statements to IRS Revenue Officer
Filing of false tax returns by Tarantino

Episode 1: An Introduction to Tax Crime Junkies. Ernst & Young Fined 100M for Cheating on Ethics Exams

Join us today as we dive deep into the Ernst & Young case that is costing them 100m dollars! We unpack the court case and how CPAs at Ernst & Young were cheating on their exams for over a decade! We also introduce ourselves, our vision, and what we hope to accomplish through the launching of this podcast! Tune in now!
 
Talking Points:
CPA Exams
Ethics
Cover-Ups
Crimes Committed
Advice on how to avoid this 
Houston Astros Cheating Connection
Integrity in our business
Much More