Attorney found guilty in tax shelter scheme

A Utah attorney has been been found guilty by a federal jury of tax fraud charges in a tax shelter scheme that involved hiding more than $20 million in taxes.

After hearing two weeks' worth of testimony, a jury on Tuesday found Dennis B. Evanson of Sandy guilty on tax and fraud charges. The jury found co-defendant Wayne F. DeMeester, an investment broker from Washington, not guilty on all counts.

Evanson, along with five others, was indicted in November 2005 of conspiring to defraud the United States along with counts of mail and wire fraud.

According to federal prosecutors, the scheme used false documents to show financial losses to offset their clients' incomes from 1996 to 2005. About $60 million was hidden in offshore bank accounts, allowing their clients to avoid more than $20 million in taxes.

"The federal prosecution of Mr. Evanson and other defendants in this case is a part of our efforts to target individuals who promote illegal tax shelters that divert significant revenue from the U.S. Treasury," said U.S. Attorney for Utah Brett Tolman. "We don't believe these criminals should be allowed to profit from their illegal promotions."

Evanson faces a maximum sentence of 100 years in prison and $250,000 in fines. According to the U.S. Department of Justice, Evanson also faces forfeiture action of $4.3 million, five pieces of real property in Utah and Montana and several vehicles. He is scheduled to be sentenced May 13.

In addition to Evanson's conviction, four other members of the tax scheme have pleaded guilty in plea deals with the government.

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