Men Convicted Of Conspiring To Obstruct The IRS
RENO, Nev. – Two men have been convicted by a federal jury in Reno of conspiring to defraud the United States by obstructing the IRS in its assessment and collection of income taxes, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Bret Ogilvie, 50, of Reno, Nev., and Linwood Tracy, 73, of Fallon, Nev., who were indicted in November 2012, were convicted on Wednesday, Dec. 4, 2013, of one count of conspiracy to defraud. Ogilvie was also convicted of one count of corrupt interference with tax administration and five counts of presenting false claims to the IRS. The trial began on Monday, Dec. 2, 2013, and was presided over by U.S. District Judge Larry R. Hicks.
According to the court records, from about Feb. 22 to Nov. 18, 2008, Ogilvie and Tracy conspired to impede and obstruct the IRS in their collection of income taxes by a number of means, including threatening to sue the IRS for $10 million if the IRS did not remove a tax lien on Ogilvie’s residence, by contacting businesses and telling them not to comply with IRS levies against Ogilvie, by setting up a corporation and transferring compensation that Ogilvie earned through his plumbing company to the corporate bank account in an attempt to evade taxes, by threatening to sue employees of the IRS, and by filing a frivolous lawsuit against IRS personnel in Washoe County. Between Dec. 8 and Dec. 10, 2008, and on March 30, 2011, Ogilvie also presented false claims to the IRS for income tax refunds the tax years 2006 through 2010 totaling approximately $3.9 million. Ogilvie made the claims by preparing and causing to be prepared an IRS form indicating he held a Power of Attorney for the Bret Ogilvie Trust.
The defendants face up to five years in prison and a $250,000 fine on the conspiracy charge. Ogilvie also faces up to three years in prison on the interference charge and up to five years in prison on each false claims count, as well as fines of $250,000 on each count. Tracy and Ogilvie are scheduled to be sentenced in Reno on March 3 and March 24, 2013, respectively.
The case was investigated by IRS Criminal Investigation, and is being prosecuted by Assistant U.S. Attorneys Ronald C. Rachow and Michael W. Large.
This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.