SEPTEMBER 29, 2022:
A federal judge in South Dakota has determined the penalty for a 68 year old Burgaw, North Carolina, man convicted of Conspiracy to Defraud the United States and Attempts to Interfere with Administration of Internal Revenue Laws.
Randy L. Garriss was sentenced to three years on Count one, and 12 months and a day on Count two, in federal prison, to be served concurrently. Garriss was also sentenced to three years of supervised release on Count one and one year of supervised release on Count two, also to be served concurrently. A special assessment to the Federal Crime Victims Fund was ordered in the amount of $200.
The conviction stemmed from incidents beginning in April of 2004 when Theodore Nelson and his son, Steven Nelson, created over 25 sham trusts to hide their income and assets from the Internal Revenue Service (IRS), thus evading the assessment and payment of federal income taxes. The Nelsons used forms created by Garriss’ co-defendant Loren Brown. The trusts were designed, in part, to make it difficult for the IRS to determine the Nelsons’ federal income tax liability. The Nelsons appointed John Sheridan and Loren Brown as trustees and successor trustees for the trusts until Sheridan’s death in 2011. Garriss then took over after Sheridan passed away. In this manner, the Nelsons were able to put many layers between themselves and their assets/income. Garriss’ and Brown’s agreement to act as successor trustees helped the Nelsons hide their income and assets from the IRS.
The Nelsons reside in Letcher, South Dakota. Garriss and Brown acted as signors for South Dakota bank accounts associated with the Nelson trusts and performed most of their actions on behalf of the Nelsons’ tax evasion in South Dakota. Among other acts, Garriss and Brown corruptly endeavored to obstruct and impede the due administration of the internal revenue laws by mailing to the IRS a Protest and Demand for Administrative Review on behalf of the Nelsons. Garriss signed on his own behalf and that of Brown as trustees for Steve Nelson and the Nelsons’ trusts. The letter was received by the IRS on January 5, 2016.
This case was investigated by the IRS Criminal Investigation. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Garriss has been allowed to self-report by October 17, 2022.
JUNE 2022:
An 86 year old man from Longmont, Colorado, man convicted of Impeding the Internal Revenue Service has received his punishment from a federal judge in South Dakota.
Loren Brown was sentenced to three years of probation, a $3,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
The conviction stemmed from incidents beginning in April of 2004 when Theodore Nelson and his son, Steven Nelson, created over 25 sham trusts to hide their income and assets from the Internal Revenue Service, thus evading the assessment and payment of federal income taxes. The Nelsons used forms created by Brown. The trusts were designed, in part, to make it difficult for the IRS to determine the Nelsons’ federal income tax liability. The Nelsons appointed John Sheridan and Loren Brown as trustees and successor trustees for the trusts until Sheridan’s death in 2011. In this manner, the Nelsons were able to put many layers between themselves and their assets/income. Brown’s agreement to act as successor trustee helped the Nelsons hide their income and assets from the IRS.
The Nelsons reside in Letcher, South Dakota. Loren Brown and his co-defendant, Randy L. Garriss, acted as signors for South Dakota bank accounts associated with Nelson trusts and performed most of their actions on behalf of the Nelsons’ tax evasion in South Dakota. Among other acts, Brown and Garriss corruptly endeavored to obstruct and impede the due administration of the internal revenue laws by mailing to the IRS a Protest and Demand for Administrative Review on behalf of the Nelsons. Garriss signed on his own behalf and that of Brown as trustees for Steve Nelson and the Nelsons’ trusts. The letter was received by the IRS on January 5, 2016.
This case was investigated by IRS Criminal Investigation.
JUNE 2022:
A federal jury in South Dakota has found Randy L. Garriss, age 68, of Lamar, Colorado, guilty of Conspiracy to Defraud the United States and Attempts to Interfere with Administration of Internal Revenue Laws.
The charges carry a maximum penalty of five years in federal prison and/or a $250,000 fine, three years of supervised release, and up to a $200 special assessment to the Federal Crime Victims Fund.
The convictions stemmed from incidents beginning in April of 2004 when Theodore Nelson and his son, Steven Nelson, created over 25 sham trusts to hide their income and assets from the Internal Revenue Service, thus evading the assessment and payment of federal income taxes. The trusts were designed to make it difficult for the IRS to determine the Nelsons’ federal income tax liability. The Nelsons appointed John Sheridan and Loren Brown as trustees and successor trustees for the trusts until Sheridan’s death in 2011. In this manner, the Nelsons were able to put many layers between themselves and their assets and income. In 2011, Garriss joined the conspiracy as a trustee for the Nelsons’ trusts. Garriss’ actions as trustee helped the Nelsons hide their income and assets from the IRS. Among other acts, Garriss also corruptly endeavored to obstruct and impede the due administration of the internal revenue laws by mailing anti-tax documents to the IRS on behalf of the Nelsons. Garriss signed on his own behalf and that of Brown as trustees for Steve Nelson and the Nelsons’ trusts.
“One of IRS Criminal Investigation’s highest priorities is to combat abusive tax avoidance schemes and the individuals who promote them,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation. “The guilty verdict of Randy Garriss for his agreement to conspire against and impede the IRS with Ted Nelson, Steve Nelson, and Loren Brown shows how IRS Criminal Investigation will work with the U.S. Attorney’s Office to bring tax cheats to justice.”
This case was investigated by IRS Criminal Investigation.
A presentence investigation was ordered and a sentencing date was set for September 12, 2022. The defendant was released on bond until sentencing.
Comments