A Las Vegas man was sentenced this week to 22 months in prison for evading more than $3 million in taxes for his so-called “asset protection” business and concealing $1 million in assets, the Department of Justice announced.
Richard Neiswonger, 67, previously pleaded guilty to one count of conspiracy to defraud the United States, two counts of mail fraud and one count of conspiracy to commit wire fraud.
U.S. District Judge Jennifer Dorsey sentenced Neiswonger on Thursday and ordered him to pay about $3.2 million in restitution to the IRS.
Prosecutors said that from 1999 to mid-2006, an imprisoned Neiswonger and his business partner formed Asset Protection Group Inc.
Neiswonger, his partner and a certified public accountant conspired to promote false and misleading business information. Consumers would purchase an “asset protection” program for roughly $9,800 and become “consultants,” who would sell “asset protection” services to clients who wished to conceal assets from potential litigants and creditors, as well as government agencies, according to a Justice Department news release.
The service allowed clients to place funds in bank accounts in the name of nominee entities that could never be traced back to the clients themselves.
More than 70 clients using the system had collective IRS liabilities totaling about $14 million, the release stated.