Nevada Author Sentenced for Promoting Tax Fraud Scheme
Reno, Nev. - A former Reno dentist who turned to a career in financial consulting, has been sentenced to three years probation and six months of home detention with electronic monitoring for his guilty plea to conspiring to defraud the IRS, announced Daniel G. Bogden, United States Attorney for the District of Nevada, Eileen J. O'Connor, Assistant Attorney General for the Department of Justice Tax Division, and Nancy Jardini, Chief of Internal Revenue Service Criminal Investigation. U.S. District Judge David W. Hagen imposed the sentence today against LAWRENCE TURPEN, of Reno. TURPEN pleaded guilty on July 14, 2004, to the felony offense of conspiring to defraud the IRS.
TURPEN became a full-time financial consultant specializing in international investing and tax planning beginning in approximately 1987, after retiring from a career in dentistry. He solicited clients at speaking engagements; through his book, "How And Why Americans Go Offshore"; and through a website advertising his products and services.
To impede the IRS from assessing and collecting his clients' individual and business income taxes, LAWRENCE TURPEN advised them to conceal their personal or domestic business income in offshore entities located in countries that did not provide financial information to the United States.
TURPEN helped his clients structure sham business transactions to make it appear as if their personal or domestic business income had been earned by the offshore entities. He also told clients not to report their ownership interests in the offshore entities and to use nominees or administrators to further conceal the true ownership and control. TURPEN also helped his clients repatriate the untaxed money by advising them to create fictitious loans from their offshore entities to pay for personal purchases, including cars and homes. He also counseled his clients to have the offshore entities pay for personal vacations or give untaxed "educational grants" to their children.
LAWRENCE TURPEN was also ordered to pay a $10,000 fine, serve 300 hours of community work service, and must cooperate with the IRS concerning the back taxes that he owes.
The case was prosecuted by U.S. Department of Justice Tax Division Trial Attorneys Caryn D. Mark and Edmund P. Power, and investigated by Special Agents of Internal Revenue Service Criminal Investigation.