A Bountiful man has been indicted by a federal grand jury in connection with the use of offshore bank accounts to defraud the Internal Revenue Service.
Lonnie D. Crockett, 52, Bountiful, and Daniel Bullock, 49, an orthopedic surgeon from Mount Shasta, Calif., face a nine-count indictment alleging they participated in a conspiracy to conceal from the IRS "millions of dollars in taxable income earned by defendant Bullock and other clients of defendant Crockett" through the use of various domestic and offshore bank accounts.
The charges also say Bullock filed false income tax returns, with Crockett's assistance, between 1996 and 1999.
According to the indictment, in December 1995 Bullock began using a tax evasion scheme, allegedly marketed by Crockett, in which his income was cycled through domestic and foreign bank accounts in a manner intended to conceal the funds from the IRS.
The scheme used false invoices, code names, and other means to conceal the movement of funds, according to the indictment. When the funds returned to Bullock, they were not reported as income to the IRS but were used, among other things, for tuition, credit card and car payments.
Crockett allegedly earned 10 percent of the funds passed through the offshore bank accounts, according to the indictment. The case is part of an IRS nationwide crackdown on abusive and sham trusts.
Crockett, a consultant, was convicted in Utah in 1996 of aiding and assisting in the filing of false tax returns and is on probation. If convicted, both Bullock and Crockett could spend up to 17 years in prison.