Due to the lapse in appropriations, Department of Justice websites will not be regularly updated. The Department’s essential law enforcement and national security functions will continue. Please refer to the Department of Justice’s contingency plan for more information.

You are here

Justice News

Department of Justice
U.S. Attorney’s Office
District of New Hampshire

Thursday, May 15, 2014

Rindge Man Pleads Guilty To Tax Evasion

In Connection With Fraudulent Investment Operation

CONCORD, NEW HAMPSHIRE – Aaron E. Olson, 39, of Rindge, New Hampshire, pleaded guilty in United States District Court for the District of New Hampshire to four counts of tax evasion, announced United States Attorney John P. Kacavas.

Beginning in 2007 through 2010, Olson was the sole proprietor of an investment business that did business as AEO Associates (AEO).  In December of 2010, he formed KMO Associates LLC (KMO), an investment business that was registered in Massachusetts.  Olson ran both operations from an office in Jaffrey, New Hampshire.  Olson used AEO and later KMO to obtain approximately $27.8 million from individuals and organizations ostensibly to invest on their behalf.  Olson was not licensed as an investment broker in New Hampshire or in any other jurisdiction and he did not register AEO and KMO with the State of New Hampshire as  investment businesses.

            Olson used approximately $2.6 million of the investors’ money for his personal benefit and used some of the investors’ money to make fraudulent “earnings” payments to other investors.  To conceal this conduct, Olson sent investors fictitious earnings statements that falsely showed significant earnings in their accounts.

            Olson also filed false and fraudulent joint individual tax returns with the IRS in which he attempted to evade or defeat taxes he owed based on his income from the fraudulent investment operation.  Among other things, Olson failed to report the gross receipts and expenses associated with the operation of AEO and KMO and he failed to issue Forms 1099 with the Internal Revenue Service summarizing investors’ annual gains and losses.  In total, Olson fraudulently understated the income taxes he owed for the four years by more than $664,000.

Olson is facing a maximum sentence of five years in prison and a maximum fine of $250,000 on each charge.  Additionally, Olson may be ordered to pay restitution to the defrauded investors in lieu of paying the taxes he owes to the United States. He is scheduled to be sentenced in September 2014.

            This case is being investigated by the office of Criminal Investigations for the Internal Revenue Service in conjunction with the New Hampshire Bureau of Securities Regulation and is being prosecuted by Assistant United States Attorney Mark S. Zuckerman.

Updated April 13, 2015