A financial services consultant based in Memphis pleaded guilty in New York to conspiracy to defraud the IRS in connection with tax shelters marketed by the accounting firm Ernst & Young.
According to the information filed in Manhattan federal court and statements made during the guilty plea, 46-year-old Charles Bolton, from 1998 to 2002, was involved with an E&Y group, known initially as “VIPER” for “Value Ideas Produce Extraordinary Results,” and later as “SISG” for “Strategic Individual Solutions Group,” that designed, marketed and implemented high-fee tax strategies, including tax shelters that purported to eliminate, reduce or defer taxes on significant income or gains. The shelters purported to allow wealthy individuals to pay a percentage of their income in fees to E&Y, Bolton’s companies, and other participants in the transactions, rather than paying taxes to the IRS.
The two shelters the Bolton companies implemented, known as Contingent Deferred Swap and CDS Add-On, involved financial trades that were implemented and overseen by the Bolton companies and other entities. Bolton himself made millions of dollars from his involvement in the shelter transactions and ownership of the related companies.
Bolton faces up to five years in prison and will be sentenced in April.
No related posts.