Roth & Company, PC Tax Update Blog

Tax Update Blog: Permalink

« Previous · Tax Update Blog Home · Next »

'Aegis' founder going away for 18 years.

October 03, 2008

Michael Vallone, the lead defendant in the Aegis offshore trust tax scheme, was sentenced to 223 months in federal prison yesterday. Mr. Vallone, 48, of Orland Park, Illinois, got this extraordinarly-long tax sentence for a nationwide scheme described in the Department of Justice press release:

Michael A. Vallone of Orland Park, Ill., was one of the founders and the executive
director of The Aegis Company, now defunct and formerly based in south suburban Palos Hills, which marketed and sold trust packages to some 650 wealthy taxpayer clients throughout the United States. Vallone and five co-defendants were convicted in May of participating in a nearly decade-long scheme to market and sell sham domestic and foreign trusts through a network of promoters, sub-promoters, managers, attorneys and accountants. Vallone and the others essentially diverted income from businesses into sham trusts for clients, hiding hundreds of millions of dollars in income for those clients and resulting in a $60 million tax loss to the United States, making the case one of the largest of its kind...

Mr. Vallone may have the unwelcome opportunity of being reunited with some of his clients who have gotten prison time for their use of Aegis services.

If somebody says they can make your taxes go away using trusts, keep in mind how well that worked out for Mr. Vallone.

Link: Tax Update Aegis coverage.

      Bookmark: del.icio.usDiggreddit

Email:  •  Phone: (515) 244-0266
All content © Roth & Company, P.C.  •  Powered by Movable Type  •  Site by Sekimori Design