The co-defendant in a $22 million Colorado-based tax-scam was sentenced Friday to nine years in federal prison.
Richard Kellogg Armstrong, 77, of Prescott, Ariz., was found guilty in April of a scheme with Curtis Morris, 43, of Elizabeth, Colo., to prepare more than 50 tax returns for at least 20 clients who claimed fraudulent deductions to get large refunds, the U.S. Attorney’s Office in Denver said.
Morris is scheduled to be sentenced on Nov. 16.
Prosecutors said Armstrong was one of Morris’ tax clients, who received more than $1.6 million from bogus tax returns and hid the proceeds in offshore bank accounts while serving as a promoter and recruiter for the scheme.
U.S. District Court Judge Robert E. Blackburn also sentenced Armstrong to three years of supervised release.
Armstrong’s restitution to the Internal Revenue Service is nearly $1.7 million, as well as forfeiting two residences and an aircraft.
“The sentence in this case demonstrates that those who defy the tax laws by preparing or filing false and frivolous tax returns will be prosecuted and punished for their conduct,” Kathryn Keneally, assistant attorney general for the Justice Department’s Tax Division, said in a statement.
IRS criminal investigations chief Richard Weber stated, “Today’s sentencing of Mr. Armstrong again emphasizes that the Internal Revenue Service and Department of Justice will continue their aggressive pursuit of those who would attempt to defraud America’s tax system.”
