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California Businessman Indicted for IRS Fraud and Money Laundering Conspiracy

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California Businessman Indicted for IRS Fraud and Money Laundering Conspiracy

According to a Department of Justice press release, a federal grand jury in Salt Lake City recently returned an indictment charging a California businessman with conspiracy to defraud the IRS, conspiracy to commit money laundering, and money laundering. This case highlights the potentially severe consequences that can arise from engaging in tax crimes. Individuals and businesses who believe they may have fallen out of tax compliance or have knowingly filed a false tax return should consult with an experienced attorney as soon as possible to navigate the road to compliance.

Businessman Accused of Concealing Millions in Taxable Fraud Proceeds

Court records reveal that from 2013 to 2020, Grigor Termendjian of Los Angeles allegedly conspired to defraud the IRS by concealing $38 million of taxable fraud proceeds, which he and others are accused of having laundered through international and domestic bank accounts. The funds involved in the money laundering transactions were allegedly proceeds from a scheme orchestrated in Utah by Termendjian's brother, Levon Termendzhyan, Jacob Kingston, and others.

The indictment alleges that Termendjian and his co-conspirators sought to disguise control of the $38 million by engaging in financial transactions that had no legitimate business purpose. They are accused of creating bogus loan agreements, falsely characterizing the transfer of fraud proceeds as share purchases or investments and using shell accounts to conceal and disguise the nature, location, source, ownership, and control of the money. Some of the transactions allegedly involved withdrawing funds to purchase cashier's checks. On one occasion, Termendjian allegedly withdrew over $41 million to purchase two cashier's checks that he held for several months outside of the U.S. financial system.

Knowing When to Seek the Help of a Seasoned Tax Attorney

The charges brought against Termendjian underscore the importance of seeking guidance from seasoned legal tax counsel at the first sign of trouble. Engaging in financial fraud, tax evasion, or money laundering can result in severe legal consequences, including substantial fines, asset forfeiture, and lengthy prison sentences albeit this firm focuses on criminal tax defense and does not typically represent those facing white collar crime unless part of a larger defense team.

If you find yourself implicated in tax fraud, filing a false tax return, or any other tax crime, it is essential to seek the counsel of an experienced tax attorney. A knowledgeable and seasoned tax attorney can help you understand the complexities of the legal system, develop a strategic tax defense, and work towards resolving your legal issues while minimizing the potential consequences of potentially serious charges.

If you have failed to file a tax return for one or more years or have taken a position on a tax return that could not be supported upon an IRS or state tax authority audit, eggshell audit, reverse eggshell audit, or criminal tax investigation, it is in your best interest to contact an experienced tax defense attorney to determine your best route back into federal or state tax compliance without facing criminal prosecution.

Note: As long as a taxpayer that has willfully committed tax crimes (potentially including non-filed foreign information returns coupled with affirmative evasion of U.S. income tax on offshore income) self-reports the tax fraud (including a pattern of non-filed returns) through a domestic or offshore voluntary disclosure before the IRS has started an audit or criminal tax investigation / prosecution, the taxpayer can ordinarily be successfully brought back into tax compliance and receive a nearly guaranteed pass on criminal tax prosecution and simultaneously often receive a break on the civil penalties that would otherwise apply. 

It is imperative that you hire an experienced and reputable criminal tax defense attorney to take you through the voluntary disclosure process. Only an Attorney has the Attorney Client Privilege and Work Product Privileges that will prevent the very professional that you hire from being potentially being forced to become a witness against you, especially where they prepared the returns that need to be amended, in a subsequent criminal tax audit, investigation or prosecution.

Moreover, only an Attorney can enter you into a voluntary disclosure without engaging in the unauthorized practice of law (a crime in itself). Only an Attorney trained in Criminal Tax Defense fully understands the risks and rewards involved in voluntary disclosures and how to protect you if you do not qualify for a voluntary disclosure.

As uniquely qualified and extensively experienced Criminal Tax Defense Tax Attorneys, KovelCPAs and EAs, our firm provides a one stop shop to efficiently achieve the optimal and predictable results that simultaneously protect your liberty and your net worth. See our Testimonials to see what our clients have to say about us!

We Are Here for You

Regardless of your business or estate needs, the professionals at the Tax Law Offices of David W. Klasing are here for you. We are open for business and our team will help ensure that your business is too. Contact the Law Offices of David W. Klasing today to discuss your business with one of our professionals.

In addition to our main office in Irvine, the Tax Law Offices of David W. Klasing has unstaffed (conference room only) satellite offices in Los Angeles, San Bernardino, Santa Barbara, Panorama City, Oxnard, San Diego, Bakersfield, San Jose, San Francisco, Oakland, Carlsbad and Sacramento.

Our office technology allows clients to meet virtually via GoToMeeting. With end-to-end encryption, strong passwords, and top-rated reliability, no one is messing with your meeting. To schedule a reduced rate initial consultation via GoToMeeting follow this link. Call our office and request a GoToMeeting if you are an existing client. 

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