Colorado man sentenced for helping South Dakota men evade income tax

SIOUX FALLS, SD (Dakota News Now) — Men who work with the IRS and helped a South Dakota man and his son evade income tax have been sentenced to probation and fined.

Loren Brown and Randy Garriss worked corruptly within the IRS to allow two South Dakota men to evade income tax, according to a statement from the United States Department of Justice.

Brown helped South Dakota men Theodore Nelson and his son Steven Nelson open 25 bogus trusts. Brown gave them the forms they needed to create the bogus trusts. These trusts were designed to make it difficult for the IRS to determine how much the men owed in federal income tax. Garriss acted as a signatory to the South Dakota bank accounts associated with the Nelson Trusts and performed most of their actions on behalf of the Nelsons’ tax evasion.

The Nelsons named John Sheridan and Loren Brown as trustees and successor trustees of the trusts until Sheridan’s death in 2011. In 2011, Garriss joined the plot as trustee of the Nelsons’ trusts.

“One of the 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. “Randy Garriss’ guilty verdict for his agreement to conspire against and obstruct 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 evaders to justice. ”

Loren Brown, 86, was sentenced to three years probation, a fine of $3,000 and a special contribution to the Federal Fund for Victims of Crime in the amount of $100. Brown was indicted by a federal grand jury on July 17, 2017. He pleaded guilty on August 10, 2020.

Randy Garriss received charges that carry a maximum sentence of five years in federal prison and/or a $250,000 fine, three years of supervised release and a special contribution of up to $200 to the Federal Death Fund. assistance to victims of crime.

This case was investigated by the IRS Criminal Investigation. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case. A pre-sentence hearing has been ordered and a sentencing date has been set for September 12, 2022.

Garriss was released on bail pending sentencing.

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