Incline Village Man Charged With Tax Offenses
Reno, Nev. – An Incline Village man was charged by the Federal Grand Jury today with presenting false claims to the IRS for over $100,000 in tax refunds and for failing to pay taxes on over $500,000 in income, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
PAUL S. JENSEN, of Incline Village, Nevada, was indicted on three counts of False Claims and three counts of Tax Evasion, all felony offenses. According to the Indictment, in April 2001 and April 2002, JENSEN submitted claims to the IRS requesting tax refunds for the years 1997 through 1999 totaling about $117,956. The claims were supported by statements that he and his spouse had no reportable income for those years, when in fact they had income totaling about $534,206. JENSEN is also charged with failing to make an income tax return and failing to pay income tax he owed for the years 2000 through 2002, even though he had received taxable income during those years of about $507,006.
During those years, the Indictment alleges that JENSEN committed the following "affirmative acts of evasion" in order to mislead or conceal his true and correct income and tax owed to the IRS:
- Created and used nominee offshore entities and bank accounts;
- Caused the distribution of funds from his personal IRA to the nominee entities;
- Transferred funds held by the offshore entity to a Swiss bank account and to a private attorney in Colorado;
- Created an International Academy of Lymphology auxiliary church and bank account in its name for which he had sole signatory authority;
- Claimed tax exempt status as a Minister of the "Church";
- Filed a vow of poverty with the Washoe County Recorder's Office in Reno;
- Transferred the deed to his residence in Incline Village, Nevada, and the title of his personal motor vehicles into nominee trusts;
- Requested that his former employer, Polar Air Cargo, pay his wages directly to the International Academy of Lymphology.
If convicted, JENSEN faces up to five years in prison and a $250,000 fine on each count. He is free on a personal recognizance bond and will be scheduled for an arraignment on the charges in the near future.
The case is being investigated by Special Agents with IRS Criminal Investigation and prosecuted by Assistant United States Attorney Paul L. Pugliese.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.