Accounting News

Tuesday, March 20, 2012
Tax Scam Mastermind Guilty

Ronald L. Brekke has been found guilty of conspiracy and wire fraud. He helped almost 1,000 people file fraudulent claims for $14 million. Most of the people filing for the refunds were Canadians. Most of the fraudulent claims were caught before being paid out but they think two percent did get through.

Brekke committed what is called 1099 OID fraud. It is the false belief that you can get a refund for interest expected from financial instruments that won't mature for at least year. He told his clients that US citizens were entitled to a refund to pay off debts.

It is not surprising that people were caught committing the fraud. They were claiming refunds of $350,000 and more. These amounts will always trigger audits. Brekke is now facing up to 65 years in prison.

The Accounting Aisle can help you only pay what you owe on your taxes. If you are looking for someone to break they law you will  have to look up Brekke in Federal prison.