Convictions of Mail Fraud, False Claims and Conspiracy; Use of Offshore Accounts

According to a DOJ Press Release, Curtis Morris and Richard Kellog Armstrong were convicted of "for mail fraud, filing false claims against the United States and conspiracy to file false claims against the United States."  "Morris was found guilty of three counts of mail fraud, seventeen counts of filing false claims against the United States and one count of conspiracy to defraud the United States. Armstrong was found guilty of one count of mail fraud, eight counts of filing false claims against the United States, three counts of engaging in monetary transactions in property derived from mail fraud and one count for conspiracy to defraud the United States.

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I suspect that Mr. Armstrong did not report the offshore bank accounts either on FBARs or 1040s, but do not know why he was not prosecuted for either violation (of course, there may not have been any or significant earnings on the accounts).

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Still, under the facts the FBAR reporting requirement would directly implicate his Fifth Amendment privilege and perhaps that was a consideration in not charging FBAR.

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View Jack Townsend's opinion in its entirety on the Federal Tax Crimes blog site.

For additional insight, explore Tax Crimes, authored by Jack Townsend and available at the LexisNexis® Store.

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