BOISE — Five peoples' attempts to defraud the Internal Revenue Service ended when a federal grand jury handed down indictments regarding the four-year conspiracy.
The U.S. Department of Justice recently said Boise residents Gary A. DeMott, Marilu Koehn, Terry M. Roark and Ava J. Gambler, along with accountant Mike B. Powell of Utah, were charged with eight felonies stemming from their participation in the Idaho Sovereignty Association.
The indictment — which is a charge that is not necessarily evidence — claims DeMott and the others helped clients evade taxes through the use of phony common-law trusts and land patents.
The charge also alleges that DeMott and Powell, along with the other defendants, helped clients prepare false tax returns, claimed that most or all of the clients' income was not taxable and demanded refunds of prior-year taxes. DeMott has said publicly that he has not filed a tax return in 30 years. He also was charged with failing to file his tax returns from 1996-1999.
DeMott is not licensed to practice law, and the indictment alleges that DeMott falsely told clients he could represent them in state and federal courts. The Justice Department said he twice tried to do so.
The tax fraud scheme operated in Idaho, Utah, Oregon, Wyoming and Colorado, according to Justice Department officials. It resulted in more than $1 million in false refund claims.