Wonder if ‘The Money Man’ can talk his way out of this one …

Vernon Newson called himself the "The Money Man," but he specialized in suckering those seeking his tax advice into making some bad decisions.

This past week, a jury at U.S. District Court sent The Money Man to the federal can.
Newson's road to the penitentiary was blazed by a generation of 1040 return hustlers and self-styled IRS tax protesters who have been attracted to Southern Nevada like fleas to a German shepherd's back. Their unabashed confidence is as jaw-dropping as their activities are shady, but year after year they continue to take advantage of the unsophisticated.

They boldly saunter forth, publishing books, creating websites and taking to the radio airwaves with commercials and appearances on talk shows. While the incarcerated Irwin Schiff is the unquestioned king of the anti-tax crowd, The Money Man Newson deserves props in the confidence department. He could teach graduate courses on the art of talking a good game.

Those checking him out online would gain few clues as to his true motives -- jacking up tax returns to generate the highest refund, and in doing so landing the highest fee for himself. Newson was listed as the owner of a check cashing service on the manta.com website. His Money Man business was listed as a tax preparation service on the wealthadvisor.com site.

By 2011, IRS Criminal Investigation agents listed him as a target for criminal prosecution and ran an undercover agent into his East Las Vegas office. A transcript indicates the agent had little difficulty getting The Money Man to talk.

After reading the record, I am left to wonder whether it might have been tougher to get Newson to shut up. It became clear to authorities that The Money Man possessed enough information on tax law to be dangerous.

"I have never ran into anybody that will do what I do," he told the undercover agent in one recording. "They don't take the time, because they're running 50 million people through here so (they) don't have time to be personal with you. In my opinion, if I'm not personal with you, how can I do the best job for you?"

He even instructed the undercover agent on job opportunities in the field.

"So this is a different approach, but as far as learning the basics, H&R Block has a school they do in the summer," he said. " ... But then you need to become your own person after you do that."

One capable of crafting tax refunds out of thin air.

Newson was slammed with a 25-count indictment in August, accusing him of filing false tax returns, obstructing tax laws and presenting a fraudulent claim.

At trial, the fast-talking Money Man found himself in a truly uncomfortable predicament. As he sat next to his attorney, Assistant Federal Public Defender Richard Boulware, the undercover tape played the defendant's voice as he rapped about his role in the tax-return racket. He assured the undercover agent that his experience made him a safer bet for clients.

"The way I describe it to people ... you have an attorney, and you have a public defender. Both of them function in the same capacity. ... But if your life was on the line, which one do you want? Both of them can function in the same capacity, but you're going to get a certain level of quality. ... This person doing it for free. You don't mean nothing, you're a case number."

Can you say, "awkward"?

Following the conviction, IRS Special Agent in Charge Paul Camacho said, "Mr. Newson was in the business of just making stuff up and putting it on tax returns for the sole purpose of creating larger deductions."

His fees depended on it.

The loquacious Newson is scheduled for sentencing Feb. 29. Presumably, his federal public defender will be at his side.

We'll see what The Money Man has to say for himself then.

John L. Smith's column appears Sunday, Tuesday, Wednesday and Friday. E-mail
him at Smith@reviewjournal.com or call
(702) 383-0295. He also blogs at
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