SALT LAKE CITY, March 18 (UPI) -- Two men entered guilty pleas in Salt Lake City Thursday to carrying out a bogus trust scheme to fool the Internal Revenue Service.
Attorney Todd R. Cannon and Dr. Lance B. Hatch each pleaded guilty to a felony charge of conspiracy. Cannon pleaded guilty to a charge of conspiracy to commit mail and wire fraud and to defraud the IRS. Hatch pleaded guilty to a charge of conspiracy to defraud the IRS.
Both face up to five years in prison and a $250,000 fine. Sentencing has not yet been scheduled.
In his plea, Cannon admitted telling prospective customers and others the trust scheme was legal when, in fact, he knew that it was illegal. He also admitted to letting his fellow conspirators fraudulently use and invest almost $1 million of client funds.
Cannon also admitted his actions cost the Treasury almost $3 million in lost tax revenue.
Hatch, a chiropractor, was charged with promoting and selling the trust scheme to 300 clients.
