Florida Lawyer Gets 8-Year Prison Term for Fraudulent Charity Tax Scam

By Annie Stephan Apr 12, 2024 12:05 AM EDT

Florida Lawyer Sentenced for Major Tax Fraud

The legal profession found itself under a cloud as a Florida attorney, Michael L. Meyer, faced an eight-year sentence after conspiring to defraud the United States. Meyer, from Davie, Florida, was also convicted of tax evasion stemming from his promotion of a fraudulent tax shelter that promised illegitimate charitable deductions.

Florida Lawyer Gets 8-Year Prison Term for Fraudulent Charity Tax Scam — (Photo : Freepik/ fabrikasimf)

Years Spanning Illicit Activity

Conversations and court documents revealed a span from at least 2013 through 2021, during which Meyer utilized his legal and accounting expertise deceitfully. His tax shelter, dubbed "The Ultimate Tax Plan," was presented by Meyer and accomplices Rao Garuda and Cullen Fischel as a lawful method for affluent clients to slash their tax burdens. Assurances of legitimate donations underpinned these claims.

Deceptive Donation Schemes Unraveled

Under this scheme, Meyer's clients appeared to donate valuable property to charities. Yet, they fully controlled and utilized the so-called donated assets. With Meyer's guidance, clients were misled to believe they could reclaim access to these assets through tax-exempt loans and eventually repurchase their donations at a fraction of the value, everything executed under a veneer of legality.

Ignoring Warnings and Continuing Deception

Meyer persisted despite stern warnings from the IRS about its illegality. The IRS audits branded the Ultimate Tax Plan an economic sham, resulting in Meyer's acknowledgment and agreement to dismantle the fictitious charities. Nevertheless, undeterred, Meyer established new "charities" to perpetuate his scheme.

Counteracting Legal Challenges with Fraud

When the Justice Department stepped in in April 2018 with a civil suit to end Meyer's nefarious activities, Meyer countered by instructing his clients to submit false records to the authorities. Moreover, when the Justice Department personally directed document requests to Meyer, he responded with falsified, retroactively altered documents.

Penalties for Meyer's Multimillion-Dollar Gain

Meyer's substantial profit from this scheme exceeded $10 million, bankrolling a lavish lifestyle, including a grand estate and a fleet of luxury cars featuring brands such as Lamborghini and Ferrari. The sentencing also entails three years of supervised release following Meyer's imprisonment, with a future determination on restitution.

Both Rao Garuda and Cullen Fischel, Meyer's partners in the scheme, had already pleaded guilty to conspiracy to defraud the United States. Their sentencing in the Northern District of Ohio was poised for mid-April.

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Enforcement and Prosecution Efforts

The case, representing a collaboration of efforts from various legal offices and divisions, was thoroughly investigated by IRS Criminal Investigation. The legal team responsible for the prosecution included Assistant Chief Michael Boteler and Trial Attorneys Andrew Ascencio and Michael Jones from the Tax Division.

Implications of the Fraudulent Scheme

This incident marks a poignant reminder of the consequences of subverting the tax system. It also serves as a stark warning to legal professionals about the severe penalties accompanying unethical practices. While Meyer prepares for his term behind bars, the legal community and tax authorities remain vigilant against such fraudulent operations.

The culmination of this case arrives as a clear message from the Justice Department and IRS: tax fraud, particularly at such a significant scale, will not be tolerated. With the fate of Meyer's co-conspirators soon to be determined, the repercussions of this fraudulent scheme continue to unfold.