The top tax crooks of 2022

January 16, 2023 9:00 AM

Crime is nothing if not consistent. Cue the IRS Criminal Investigation division's top 10 cases for 2022, where tax evasion, Ponzi pyramids, COVID fraud and lavish lifestyles again headed the pack of scams.

The CI division's top 10 cases comprise the agency's most prominent and high-profile investigations of the past 12 months, demonstrating "that no one — not attorneys, not reality television stars, not law enforcement officers — is above the law," said IRS-CI chief Jim Lee in a statement.

Will they never learn? Apparently not, and here's what they all tried, from number 10 to the tip-top worst.

10. That’s a relief

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Elias Eldabbagh of the District of Columbia was sentenced to 10 years in prison for trying to steal $31 million in COVID-19 relief funds. He managed to rip off almost $2.4 million from the Paycheck Protection Program and Economic Injury Disaster Loan programs using a stolen identity fraud.

He blew the haul on a Tesla and personal expenses from hotels to attorney fees and converted hundreds of thousands of dollars into crypto. He had to surrender the Tesla and the contents of 21 bank accounts, as well as liquidate his cryptocurrency.

9. Universal suffering

Las Vegas tax preparer King Isaac Umoren got 13 years and three months in prison for filing false returns, aggravated ID theft, wire fraud, money laundering and impersonating an FBI agent. He was also ordered to pay nearly $9.7 million in restitution to Uncle Sam and the other victims of his schemes.

He owned and operated Universal Tax Services, where he prepared and filed federal returns for clients that included false deductions and fictitious businesses — and where he used the names and PTINs of other Universal employees without their knowledge. He made clients use a refund anticipation check program that he used to sneak fees out of the refunds, and even drove to one client's house posing as an FBI agent with a badge and tac gear.

8. Deputy dog

Judge's gavel and block with LAWSUIT inscription

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Christopher Burnell, a former sheriff's deputy in California, was sentenced to 168 months in prison and ordered to cough up nearly $7.6 million in restitution after he claimed to have accumulated tens of millions of dollars from lawsuits.

Over seven years he encouraged victims to invest with him, promising returns as high as 100%. Burnell spent the cash on gambling and luxury items, including private jet trips, designer merchandise and cars. He reported none of the money he received from victims in 2011 or 2012 on his income tax returns and only reported income from gambling winnings in 2011 and 2012 — estimated at more than $1 million — all of which was offset by gambling losses.

7. Third time’s the charm

Serial tax fraudster Michael Dexter Little was sentenced in Florida to 19 years and six months in prison and ordered to forfeit at least $12.3 million after filing, from 2019 to 2021, bogus returns claiming massive fuel tax credits. He filed the false returns in his own name and in the names of conspirators and ID-theft victims, netting at least $12.3 million in fraudulent refunds (they tried to get their hands on at least $27 million more).

Little and his conspirators laundered their loot and used a lot of it to purchase real estate and other assets. He was previously convicted of tax fraud, by the way, in 1999 and 2003.

6. Last show of the series

The husband-and-wife stars of "Chrisley Knows Best" were found guilty of tax evasion and conspiracy to defraud the IRS: Todd Chrisley got 12 years in prison with three years of supervised release for eight federal felonies; his wife Julie Chrisley was sentenced to seven years in prison and three years of supervised release for 10 federal felonies. Their accountant, Peter Tarantino, was sentenced to three years in prison and three years of supervised release for three federal felonies.

To dodge paying half a million dollars in delinquent taxes owed by Todd Chrisley, the couple opened and operated corporate bank accounts only in Julie's name. Once the IRS requested information about the accounts, the Chrisleys transferred ownership of the corporate bank account to a relative. The couple also failed to file returns or pay any taxes during the 2013 to 2016 tax years, and they were found guilty of other crimes, including conspiracy to defraud banks out of more than $30 million in fraudulent loans.

5. Going coast to coast

Fraud conspirator Mehef Bey was sentenced to 11 years, Iran Backstrom to eight years and Eurich Griffin III to 57 months after they promoted a nationwide tax fraud to more than 200 participants in at least 19 states — and caused more than $64 million in false refund claims. Bey and Backstrom were also hit with three years of supervised release and ordered to pay some $26 million in restitution to the feds. Griffin was required to pay more than $1.6 million.

4. Ran out of luck

David Bunevacz, a former decathlete for the Philippines and former UCLA decathlete, was sentenced to 210 months (17 1/2 years) in prison for fraudulently raising more than $45 million from investors who were told their funds would be used to finance companies marketing cannabis vape pens — a scam that stretched back more than a decade.

Bunevacz stole most of the money to pay for a luxurious house, trips to Vegas, jewelry, designer handbags, a birthday party for his daughter and horses. He raised more than $45 million from at least 100 victims, causing losses of some $35.27 million. He also got socked with having to pay back more than $35,267,851 in restitution.

3. Twilight zone

Photovoltaic panels at a solar power park, operated by Hellenic Petroleum SA, in Kozani, Greece, on Wednesday, April 6, 2022. The Kozani PV Park is the largest project of renewable energy sources in Greece. Photographer: Konstantinos Tsakalidis/Bloomberg

Konstantinos Tsakalidis/Bloomberg

Paulette Carpoff, COO of DC Solar, was sentenced to 11 years and 3 months in prison for her role in the biggest criminal fraud in the history of the Eastern District of California. She controlled Ponzi-like payments that hid the company's lack of third-party lease revenue and used phony engineering reports to fool investors into thinking DC was a success.

In November 2021, her husband Jeff Carpoff was sentenced to 30 years in prison and ordered to pay $790.6 million in restitution for conspiracy to commit wire fraud and money laundering — but he did make No. 2 on 2021's IRS Top 10.

2. Midnight at the Oasis

Michael J. DaCorta of Sarasota, Florida, was sentenced to 23 years in prison for conspiracy to commit wire fraud and mail fraud, money laundering and filing a false income tax return. For nearly eight years, he ran the investment company Oasis International Group, where he and his co-conspirators persuaded at least 700 victims to invest in Oasis, causing losses of more than $80 million. DaCorta and his conspirators then used the balance of the money to make Ponzi-style payments to perpetuate the scheme and to fund lavish lifestyles, which included luxury cars, multimillion dollar homes, trips and more.

DaCorta underreported income on his 2017 federal income tax return, claiming negative income and receiving a refund. He also had to hand back almost $2.82 million.

1. Stormy, indeed

Michael Avenatti

Louis Lanzano/Photographer: Louis Lanzano/Bloo

Lawyer Michael Avenatti was sentenced to 14 years in prison for defrauding four of his clients out of millions and obstructing IRS attempts to collect payroll taxes from his coffee business. He must also pay $10.8 million in restitution to his clients and to the IRS.

The 14-year sentence will be served consecutively to sentences Avenatti is already serving: He's in a California prison after being convicted of stealing from Stormy Daniels, the adult film actress he represented in her legal fight with former President Donald Trump. The seemingly tireless lawyer was also convicted for trying to extort millions of dollars from Nike.