A Las Vegas accountant awaiting trial in an alleged multimillion-dollar tax scheme was indicted by a federal grand jury Tuesday with two of his clients in another conspiracy to hide money from the Internal Revenue Service.
Wendell L. Waite, 72, and the clients, James B. McCord, 75, and Darlene T. McCord, 69, have been summoned to make initial appearances on the latest charges in federal court on Sept. 19.
They are accused in the 20-count indictment of conspiring between September 2004 and September 2008 to evade hundreds of thousands of dollars in taxes and penalties the McCords owed the IRS.
The McCords conducted bank transactions aimed at hiding roughly $2.7 million in income from the IRS during those years, the indictment alleges.
In addition to tax evasion, all three defendants are facing charges of conspiring to defraud the United States and aiding and assisting in the preparation of false tax returns. The McCords also are charged with filing false tax returns.
From 2002 to 2006, Waite was associated with a Nevada company called Asset Protection Group, which was set up to help people conceal assets from the IRS and other creditors, according to the indictment.
Waite and two other men, including former Colorado lawyer William S. Reed, were indicted in July 2011 in massive tax scheme prosecutors alleged took in more than $63 million between 2003 and 2006.
Reed, 61, the mastermind of the scheme, pleaded guilty last year to conspiracy to defraud the United States, aggravated identity theft and attempted tax evasion. He agreed to pay $40 million in restitution and is to be sentenced next month.
Waite is to be tried in the scheme in January.
Reed, whose license to practice law in Colorado was suspended in 1997 for engaging in misrepresentations and dishonesty, authored the book “Bulletproof Asset Protection.”
Prosecutors alleged Reed and his co-defendants enriched themselves as far back as 1998 through the sale of services and products that would help people conceal income from the IRS.
Reed formed the Nevada company, Asset Protection Group, which operated in Las Vegas between 1999 and 2006.
Asset Protection Group sold a business opportunity training program to at least 1,000 people for about $10,000 each, prosecutors alleged.
Those who bought the program became consultants and sold the service to clients who wanted to hide assets. In turn, the consultants received a portion of the fees paid by the clients.