More than 2,000 false income and trust tax returns later, a Nevada man has been sentenced to four-and-a-half years in prison.
R. Scot Stokes, of Henderson, Nev., was sentenced to 54 months for conspiring to defraud the United States and conspiring to commit mail and wire fraud, in connection with the promotion of a tax and investment fraud scheme, the Department of Justice and the Internal Revenue Service announced.
Stokes will serve three years of supervised release upon the completion of jail time.
In February 2005, he pleaded guilty to conspiracy and admitted that the filing of false returns had resulted in a loss of federal tax revenue between $7 million and $10 million. Piled on to that admission, Stokes said that he participated in fraudulent investment schemes that caused customers to lose between $2.5 million and $5 million.
He is one of 11 individuals who have pleaded guilty in this case, including four attorneys and one CPA.
According to papers filed with the court, Stokes admitted that between 1994 and 2004, he and his conspirators -- under the business names Advanta Strategies, World Contractual Services and CornerStone West -- marketed and sold a fraudulent trust scheme to over 300 clients through domestic and offshore seminars, promotional material and opinion letters.
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