Story Update: Former Washington, D.C. Lawyer Sentenced in Multi-Million Dollar Fraudulent Scheme

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Story Update: Former Washington, D.C. Lawyer Sentenced in Multi-Million Dollar Fraudulent Scheme

As an update to a story that we brought to you earlier this year, a former Washington, D.C. attorney was sentenced after being convicted for engaging in a $2 million investment fraud scheme.

Former Attorney Engaged in Fraud and Tax Crimes, Convicted

Documents from trial show that Brynee Baylor, a former D.C. attorney, pleaded guilty earlier this year to intentionally failing to file her 2010 individual income tax returns and paying the taxes that would have been associated with such filing. As a part of her guilty plea, she admitted that she would have paid approximately $79,000, if she had filed and paid her taxes, as legally required.

A Department of Justice press release indicates that Baylor was sentenced to serve 25 months in a federal prison. Additionally, she will be required to serve three years of supervised release after she finishes her federal prison stay. Lastly, Baylor was ordered to pay $2.2 million of restitution to her victims.

According to our original story earlier this year, a jury had already convicted Baylor of one count of conspiracy to commit securities fraud, one count of securities fraud, and five counts of first-degree fraud under the laws of the District of Columbia.

As a part of the activity that resulted in her conviction for securities fraud, Baylor conspired with a Pennsylvania man and the company that he owned to recruit certain investors into a fake trading program. Like many of the fraudulent investment scams that have come to light over the years, investors were promised hefty profits with relatively no potential downside.

Unsurprisingly, the Securities and Exchange Commission sued Baylor and a handful of others for committing fraud in connection with the fake trading program that she had helped establish. In the process of investigating those crimes, the IRS was brought in and it was determined that Baylor had failed to timely file certain tax returns.

See our Criminal Tax Law Q and A Library

Government Agencies Often Work Together to Secure Convictions

Although many do not engage in securities fraud, this story is a reminder that the IRS does not operate in a vacuum. Many Americans deal with different parts of the federal and state governments on a regular basis, whether we desire to or not. Additionally, our taxes may be open to scrutiny when we least expect it. For instance, couples engaged in a divorce may have their finances looked at as a part of the mediation or adjudication process, which can result in an IRS or state tax investigation. If you have failed to file a tax return in a timely manner or believe that a portion of your filed tax return may be incorrect, it is in your best interest to contact an experienced tax defense attorney as soon as possible.

See our Civil and Criminal Divorce Tax Law Q and A Library

Contact an Experienced Tax Attorney Today

The tax and accounting professionals at the Tax Law Offices of David W. Klasing have extensive experience representing taxpayers from all walks of life. Whether you are a business owner facing a sales and use tax audit or you have received notice that your individual return is being examined, our team of zealous advocates are standing by to help you develop a sound legal strategy that will keep your personal and financial interests at the forefront of importance. Do not lose sleep over the possibility of tax evasion or other tax-related charges from the IRS or state taxing authorities. Contact the Tax Law Offices of David W. Klasing today for a reduced-rate consultation.

Also, we’ve expanded our offices! In addition to our offices in Irvine and Los Angeles, the Tax Law Offices of David W. Klasing now have offices San Bernardino, Santa Barbara, Panorama City, Oxnard, San Diego, Bakersfield, San Jose, San Francisco, Oakland, and Sacramento.

 

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