Feds: Banker Did Not Report Income
A California banker is facing a stiff prison sentence after not declaring a six-figure income derived from a prime bank scheme.
Mary J. Clagg, 60, of Fresno, was indicted on federal income tax charges stemming from the scheme. She has pleaded not guilty.
According to the government, from approximately January 1999 to December 2002, CLAGG received commissions from Resource Development International (RDI), a scheme that raised nearly $98 million. RDI was in fact a fraudulent investment scheme that offered and sold unregistered prime bank securities, mainly targeting people seeking to invest retirement funds. Instead, investors’ funds were misappropriated and dispensed for personal and unauthorized business uses. Tens of millions of dollars were diverted from the RDI bank account to offshore accounts in the Bank of Nevis, West Indies.
Over about three years, more than $802,000 was deposited into Clagg’s Bank of Nevis account. From approximately November 1999 to June 2003, CLAGG repatriated thousands of dollars from her Bank of Nevis account into the United States and failed to declare on her tax returns the more than $634,000 of income derived from paid commissions received to her Bank of Nevis account.
She faces up to three years in prison and a fine of up to $250,000 for each count.
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Tags: Banker Did Not Report Income, Mary J. Clagg
