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US Attorneys Office Press Release - Sioux Falls

Mitchell Man Pleads Guilty to Conspiracy to Defraud the US

February 23, 2007
Sioux Falls, South Dakota

United States Attorney Marty J. Jackley announced that Kerwin Miller from Mitchell, South Dakota, appeared before U.S. District Judge Charles B. Kornmann in Pierre on Friday, February 23, 2007, and pled guilty to an indictment that charged Miller with conspiracy to defraud the United States by impeding, impairing, obstructing and defeating the lawful government function of the Internal Revenue Service in the ascertainment, computations, assessment and collection of income taxes and to file false tax returns. The maximum penalty upon conviction is five years incarceration and a fine of $250,000. Miller was a representative of Aegis Corporation and sold individuals in South Dakota and elsewhere packages of management companies and trusts for the purpose of defrauding the United States by attempting to fraudulently conceal assets and income from the IRS by placing the individual’s assets and income in these management companies and trusts thereby illegally reducing the income tax liability. As part of the conspiracy, Miller and individuals who purchased the packages agreed to claim false amounts of income on the individuals’ federal income tax returns omitting material amounts of income passed through the asset management companies and trusts. Further, Miller caused the preparation of papers for offshore banking transactions for individuals using these trusts. In addition to these acts, Miller and other individuals sent correspondence to several IRS officials to obstruct IRS audits and inquiries. The investigation was conducted by the Criminal Investigation Division of the Internal Revenue Service and was prosecuted by Assistant United States Attorney David L. Zuercher. A presentence investigation was ordered and a sentencing date was set for July 16, 2007. The defendant was released on bond pending sentencing.