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SALT LAKE CITY — A St. George financial adviser who sold fraudulent tax-avoidance and investment strategies to clients totaling more than $10.8 million is going to prison.
A federal judge this week sentenced Henry Brock to six years behind bars after he earlier pleaded guilty to tax evasion, securities fraud and wire fraud. The judge also ordered Brock to pay $12 million in restitution.
Brock promised investors that he could provide a way for them to avoid paying taxes on IRA withdrawals, which would otherwise be subject to penalties and taxes, according to federal authorities. He issued tax forms to clients falsely representing that they were investors in his business, which served to offset their tax liabilities.
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St. George financial adviser headed to prison for $10.8M fraud
A St. George financial adviser has admitted in federal court to selling fraudulent tax-avoidance and investment strategies to clients totaling more than $10.8 million.As a result, Brock caused clients to file false income tax returns claiming $3.8 million in bogus business losses and resulting in a tax loss of more than $1.1 million.
Brock used $196,323 of one client’s money for his own personal and business expenses, authorities said.
