SALT LAKE CITY (AP) -- Five Utah men were charged Wednesday with conspiracy to commit mail and wire fraud and to defraud the IRS of more than $5 million.
From 1993 to 2002 the men allegedly marketed, promoted and sold a fraudulent trust scheme to over 300 clients through seminars, promotional materials and letters. The defendants claimed their trust scheme would eliminate or reduce individuals income tax liability, the indictment said.
The defendants are David J. Orr, of West Valley City; Michael N. Behunin, of Sandy; Todd R. Cannon, of Orem; Lanny R. White, of Orem; and Max C. Lloyd, of Sandy.
Behunin and Cannon are lawyers. White and Lloyd are certified public accountants.
Returned by a grand jury, the indictments allege the group claimed clients would reduce income tax liability by putting assets in trusts. According to the indictment, the defendants caused false income tax returns to be filed with the IRS that omitted all or most of their clients' taxes.
If found guilty, the defendants could spend five years in prison and pay a $250,000 fine.
(Copyright 2003 by The Associated Press. All Rights Reserved.)