A man from Frisco has recently been indicted by a Sherman, Texas, federal grand jury on charges of tax evasion and corruptly obstructing the IRS. The indictment alleges that he attempted to evade federal income taxes using methods including an abusive-trust tax shelter.
Previously in September, a federal grand jury in Denver charged him with conspiring against the United States by promoting the same abusive-trust tax shelter nationally with others.
The indictment states that Larry Conner, the accused from Frisco, did not pay income taxes as reported on his personal tax returns from 2001 to 2014. Conner is said to have tried to hinder the IRS from collecting these unpaid taxes by creating fake trusts, hiding over $5 million in income earned from 2016 to 2021, and concealing other assets from the IRS.
Conner allegedly used trust documents to create five trusts and opened bank accounts for each, using them for personal expenses. The indictment claims he transferred most of his income to these sham trusts and filed individual tax returns that did not include this income.
Furthermore, the indictment asserts that in 2018, Conner submitted a misleading form to the IRS to settle part of his tax debt. On this form, he is accused of understating his assets, leaving out several bank accounts, and falsely claiming he was not involved in business activities.
The earlier indictment in Denver accused Conner of nationally promoting the same abusive-trust tax shelter he reportedly used to dodge his taxes, as per the recent charges. Conner is alleged to have sold this tax shelter to clients, charging them about $25,000 to $50,000 each, leading to tens of millions of dollars in federal income taxes not paid.
If found guilty, Conner faces up to five years in prison for each count of tax evasion and three years for corrupt obstruction of the IRS. The final sentencing will be determined by a federal district court judge, considering the U.S. Sentencing Guidelines and other legal factors.
