Local Insurance Salesman Pleads Guilty to Fraud and Tax Charges
St. Louis, MO – PAUL PARKER pled guilty to charges involving a scheme to defraud four clients by using their investment funds to pay his expenses and gamble. He also admitted that he willfully failed to file tax returns during the scheme, in part to avoid reporting his income from the fraud.
According to court documents, Parker held an account in the name of American Investors, Inc. for the purported purpose of receiving funds from clients to purchase life insurance annuities. Rather than purchase annuities on his clients’ behalf, however, Parker spent their money on personal expenses and gambling. In the course of the scheme, Parker also used monies contributed by later clients to fund repayments to prior clients. In total, Parker took in approximately $259,168 through false and fraudulent pretenses, resulting in a loss to investors of approximately $209,168. Parker also admitted to failing to file federal income tax returns for three years from 2010 to 2012.
Parker, St. Louis, Missouri, pled guilty to one felony count of mail fraud and three counts of failure to file a tax return before United States District Judge Rodney W. Sippel. Sentencing has been set for July 16, 2015.
Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000; each count of failure to file tax returns carries a maximum penalty of one year in prison and/or fines up to $25,000.
This was investigated by Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Richard Finneran is handling the case for the U.S. Attorney’s Office.