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Tax attorneys, insurance agent scams more than $4 million through tax scheme, DOJ says

Tax attorneys, insurance agent scams more than $4 million through tax scheme, DOJ says
LOCAL BREAKING NEWS. THIS IS WYFF NEWS FOUR AT SIX. HE WOULD STILL BE ALIVE TODAY MONTHS AFTER A 13 YEAR OLD BOY DIED. THREE OF HIS FAMILY MEMBERS, INCLUDING HIS MOTHER, ARE NOW CHARGED IN HIS DEATH, HOLDING OUT HOPE. WE’RE DOWN THE STREET. YEAH. FOR WHAT? UP THE STREET. YELL FOR. BUT SHE WAS FINE. I’M CARLOS FLORES, THE FAMILY OF A MISSING 61 YEAR-OLD WOMAN SPEAKS EXCLUSIVELY TO WYFF NEWS FOUR ABOUT THE MOMENTS SHE VANISHED. CLOUDS RETURNED FOR OUR FRIDAY WITH A FEW ISOLATED SHOWERS. I’LL LET YOU KNOW WHEN THE 70S TURN BACK TO THE 80S AS. RIGHT NOW IN SPARTANBURG COUNTY, A MOTHER IS BEHIND BARS ACCUSED OF KILLING HER 13 YEAR OLD SON. THE MOTHER, ALONG WITH HER FATHER AND BROTHER, ALL FACE CHARGES IN CONNECTION WITH THE DEATH OF 13 YEAR-OLD. ROBERT FISH MARTIN PENIX WAS IN COURT FOR THEIR BOND HEARING. GOOD EVENING, NIGEL CARROLL. IT WAS A SOMBER MOMENT HERE IN COURT, AND I’D LIKE TO ADD THAT ROBERT’S UNCLE FREDDIE FISH, THE SECOND WAS SHAKING THE WHOLE TIME HE WAS SITTING IN THE COURTROOM, ROBERT WAS FOUND DEAD AT HIS HOME ON OCTOBER 8TH, 2022. AN AUTOPSY REVEALED THE CAUSE OF DEATH WAS MALNUTRITION, DEHYDRATION AND THE WITHHOLDING OF SEIZURE MEDICATION. ROBERT HAD A RARE, SEVERE FORM OF EPILEPSY, AND THE ATTORNEY WITH THE SOLICITOR’S OFFICE ARGUES ALL THREE ADULTS WERE RESPONSIBLE FOR ROBERT’S WELL-BEING, AND THEY FAILED HIM. SHE DIDN’T TAKE CARE OF HER SON, AND HE’S DEAD, AND HE DIDN’T HAVE TO BE. NOW, MALNUTRITION AND DEHYDRATION. I THINK I CAN STOP THERE, SINCE BOND MUST BE DENIED BY LAW. THANK YOU. BOND WAS DENIED FOR BOTH THE MOTHER HOPE FISH AND THE UNCLE FREDDIE FISH. THE SECOND, THE MOTHER FACES SEVERAL CHARGES, INCLUDING MURDER. THE JUDGE SET BAIL FOR $5,000 FOR THE GRANDFATHER. FREDDIE FISH SENIOR ALWAYS KEEP IN MIND THE AMERICAN PRINCIPLE OF INNOCENT UNTIL PROVEN GUILTY. IT NEEDS TO MEAN SOMETHING. PEOPLE GET ACCUSED OF CRIMES ALL THE TIME. THOSE CRIMES ARE OFTEN DISMISSED. THEY’RE OFTEN REDUCED. ATTORNEY STEVE HASKER IS ONLY REPRESENTING FREDDIE FISH TO SECOND AND FREDDIE FISH SENIOR. HE SAYS HIS CLIENTS INTEND TO PLEAD NOT GUILTY. THEY’RE NEXT COURT APPEARANCE IS SCHEDULED FOR JUNE 27TH AT 9 A.M. REPORTING IN SPARTANBURG, TANIQUA PENNIX WYFF NEWS FOUR. LET’S TURN TO WEATHER NOW. A LIVE LOOK FROM OUR LAKE HARTWELL SKYCAM. IT’S A VERY NICE DAY OUT THERE. BEAUTIFUL DAY TO BE OUT ON THE WATER. CHIEF METEOROLOGIST CHRIS JUSTUS IS HERE. AND CHRIS, A LOT OF SUNSHINE TODAY. IT’S BEEN BEAUTIFUL OUTSIDE AND TEMPERATURES HAVE BEEN ON THE WARM SIDE BACK TO WHERE WE SHOULD BE THIS TIME OF THE YEAR 76, IN GREENVILLE, WHICH IS RIGHT ON THE MONEY FOR OUR NORMAL, OUR AVERAGE HIGH TEMPERATURE. WE’VE GOT SOUTHERLY WINDS RIGHT NOW BACK TOWARD THE WEST. CHANGES LURK, THOUGH. THESE CLOUDS THAT ARE OVER GEORGIA ARE MOVING IN TONIGHT, AND WE MAY EVEN GET A FEW OF THESE RAIN SHOWERS BACK TOWARD ALABAMA. THOSE WILL TRY TO MAKE A RUN FOR OUR AREA TOMORROW. BRING IN SOME SHOWERS HERE OR THERE, BUT IT’S A WARM FRONT. IT’S ACTUALLY GOING TO WARM US UP EVENTUALLY ONCE IT PASSES BY. 77 IN LAWRENCE, 75 RIGHT NOW IN SPARTANBURG. GOOD EVENING. IT’S A BEAUTIFUL DAY OUTSIDE. AND THE NEXT 12 HOURS WILL BE NO DIFFERENT. WE’LL SEE. TEMPERATURES SIMMER ON DOWN TO THE LOWER 60S WITH INCREASING CLOUDS. WE SHOULD BE DRY ALL THIS EVENING, SO NO PROBLEMS THERE. COMING UP, I’LL MAP OUT THE SLIGHT CHANCE FOR SOME RAIN TOMORROW AND WHERE TEMPERATURES GO INTO THE WEEKEND. THANK YOU CHRIS. ONLY ON W WYFF NEWS FOUR. THE FAMILY OF A MISSING UNION COUNTY WOMAN IS SPEAKING OUT. 61 YEAR OLD LISA JOHNSON WAS LAST SEEN SUNDAY EVENING. CARLOS FLORES SPOKE EXCLUSIVELY WITH HER FAMILY. CARLOS, WHAT DID THEY HAVE TO SAY? WELL, CAROL, LISA JOHNSON HAS BEEN DESCRIBED AS THE BACKBONE OF HER FAMILY AND SOMEONE YOU CAN ALWAYS RELY ON. NOW HER FAMILY IS CALLING ON THE COMMUNITY TO HELP BRING HER HOME. THE GLUE THAT HAS KEPT THIS FAMILY TOGETHER. YOU KNOW, SOMETIMES WITH HER, WHATEVER. THAT’S THE MAIN REASON. LIKE, WE ALL KIND OF GOT TOGETHER SOMETIMES, YOU KNOW, SHE WAS KIND OF THE REASON WHY WE STARTED GOING TO CHURCH AND TRYING TO GET CLOSER TO GOD. AND EVERYTHING IS NOW MISSING. SHE WAS, YOU KNOW, CARING AND GIVING AND ANYBODY WHO CAME AROUND, YOU KNOW WHAT I’M SAYING? LIKE FAMILY MEMBERS OR WHATEVER. IF SHE HAD IT, SHE YOU KNOW WHAT I’M SAYING? SHE CAN GIVE IT TO HIM. SHE WAS 61 YEAR OLD. LISA JOHNSON WAS LAST SEEN LEAVING HER HOME SUNDAY EVENING. OFFICIALS SAY SHE WAS WEARING A BLACK JACKET WITH RED PAJAMA PANTS AND BLACK SHOES. BUT THAT FAITH SHE INSTILLED IN HER FAMILY IS KEEPING HOPE ALIVE TO BRING HER HOME. LIKE USUALLY, YOU KNOW, SAYING WHEN SHE LEAVE THE HOUSE OR WHATEVER, SHE WAS LIKE, YOU KNOW, IN THE FRONT YARD OR, YOU KNOW WHAT I’M SAYING? SHE’LL TAKE A WALK AND COME BACK. SO I AIN’T REALLY THINK TOO MUCH OF IT. BUT HER SON CHARLES, TWO, SAYS THIS TIME IT WAS DIFFERENT. WE’RE DOWN THE STREET. YEAH. FORD WENT UP THE STREET, YELL FOR. BUT SHE RESPOND. JOHNSON ALSO HAS EARLY STAGE DEMENTIA AND DIABETES. BUT AS TIME PASSES, THE FAMILY HAS BECOME THE GLUE FOR EACH OTHER AND I FEEL LIKE IF I KEEP MYSELF UP, I CAN, YOU KNOW, TRY TO KEEP THEM UP AS WELL WHILE THEY WAIT AND HOPE JOHNSON IS FOUND. COME HOME LIKE WE LOVE YOU. YOU KNOW WHAT I’M SAYING? LIKE WE MISSING YOU. WE LIKE. WE PRAYING FOR YOU. YOU KNOW WHAT I’M SAYING? AND YOU KNOW, JUST WISH SHE’LL COME HOME. OH, WE LOVE YOU. WE MISS YOU. WE KNOW YOU’RE SOMEWHERE OUT THERE. WE JUST WANT YOU TO COME HOME SAFE. AND WE’RE NOT GOING TO GIVE UP. NOW, OFFICIALS WITH THE UNION COUNTY SHERIFF’S OFFICE HAVE JUST GAVE US ENOUGH, GIVING US AN UPDATE AROUND TWO HOURS AGO. AND THEY TOLD US, THIS IS STILL AN ACTIVE SEARCH. THEY’RE HOPING TO LOCATE JOHNSON, AND THEY’RE ENCOURAGING THE COMMUNITY TO. IF YOU SEE HER, CONTACT THE UNION COUNTY SHERIFF’S OFFICE. RIGHT AWAY. DO NOT WAIT ANY LONGER. NO TIP IS TOO SMALL. THE SOONER THE BETTER. FOR NOW, LIVE IN UNION COUNTY. CARLOS FLORES, WYFF NEWS FOUR. CARLOS THANK YOU. IN LAWRENCE COUNTY, A MAN HAS BEEN SENTENCED TO LIFE IN PRISON AFTER A JURY FOUND HIM GUILTY OF MURDERING A WOMAN. HE WAS DOING HVAC WORK FOR THE DAY SHE DISAPPEARED. BILLIE JEAN CROSS’S BODY WAS FOUND IN THE WOODS IN ANDERSON COUNTY IN DECEMBER OF 2021, FOUR DAYS AFTER BEING REPORTED MISSING. WE’RE TOLD SHE WAS STRANGLED TO DEATH. TIMOTHY SPENCER WAS CHARGED WITH MURDER IN THE CASE. INVESTIGATORS SAID G-P-S RECORDS AND PHONE DATA SHOWED SPENCER TRAVELED FROM CROSS’S HOME TO THE SITE WHERE HER BODY WAS LOCATED. HE WAS FOUND GUILTY THURSDAY RIGHT NOW IN HENDERSON COUNTY, HEALTH OFFICIALS SAY MORE THAN TWO DOZEN CASES OF WHOOPING COUGH HAVE BEEN REPORTED, AND WE ARE TOLD MANY OF THE 27 CASES ARE AMONG SCHOOL AGED CHILDREN. WHOOPING COUGH, ALSO KNOWN AS PERTUSSIS, IS AN INFECTION THAT AFFECTS THE AIRWAYS AND LUNGS AND SPREADS WHEN SOMEONE COUGHS OR SNEEZES. FAMILIES ARE ENCOURAGED TO MAKE SURE THEIR VACCINATIONS ARE UP TO DATE. SOUTH CAROLINA’S SENATOR LINDSEY GRAHAM WAS IN GREENVILLE TODAY FOR A ROUNDTABLE DISCUSSION ON THE RECENTLY PASSED FOREIGN AID LAW. SENATOR GRAHAM FOCUSED ON UPDATING SOUTH CAROLINA FAITH LEADERS ABOUT HOW THE PACKAGE WILL HELP ISRAEL. THE LAW WILL GIVE ASSISTANCE TO UKRAINE AND TAIWAN AS WELL. GRAHAM TALKED ABOUT IRAN’S ATTACK ON ISRAEL EARLIER THIS MONTH, AND SAYS THAT ISRAEL IS FIGHTING FOR ITS EXISTENCE. SINCE 80 YEARS AGO. THE JEWISH PEOPLE WERE BEING ANNIHILATED BY THE NAZIS. WE COULD HAVE STOPPED HITLER A DOZEN TIMES, BUT NOBODY WANTED TO GET INVOLVED. WHAT HAVE I LEARNED FROM HISTORY? THE SOONER YOU CONFRONT EVIL, THE BETTER OFF YOU’LL BE. TODAY’S ROUNDTABLE WAS HELD AT MORNINGSIDE BAPTIST CHURCH ON PELHAM ROAD. MIKE PENCE RIGHTS HAVE BEEN TAKEN AWAY FROM ME. WE RESPECTED SCHOLAR HAS SAID THIS IS NO CASE. THERE IS NO CASE HERE. THIS IS JUST A POLITICAL WITCH HUNT. FORMER PRESIDENT DONALD TRUMP SAYS HE BELIEVES HIS HUSH MONEY TRIAL IS POLITICALLY MOTIVATED. TODAY, FORMER NATIONAL ENQUIRER PUBLISHER DAVID -- WAS BACK ON THE WITNESS STAND. -- TESTIFIED THAT HE WENT TO GREAT LENGTHS TO KEEP OTHERS FROM LEARNING ABOUT ALLEGED PAYMENTS REGARDING DONALD TRUMP’S AFFAIR. THE FORMER PRESIDENT HAS PLEADED NOT GUILTY TO 34 COUNTS OF FALSIFYING BUSINESS RECORDS. FOR MORE FROM THE COURTROOM, STAY TUNED TO NBC NIGHTLY NEWS. WITH LESTER HOLT COMING UP. AT 630. AND COMMITMENT 2024 COVERAGE. ANDERSON COUNTY IS LOOKING FOR ELECTION WORKERS AHEAD OF THE JUNE PRIMARIES. THE STATEWIDE PRIMARY WILL BE HELD ON TUESDAY, JUNE 11TH, WITH POSSIBLE RUNOFFS ON JUNE 25TH. COUNTY OFFICIALS SAY ELECTION WORKERS WILL BE RESPONSIBLE FOR SETTING UP POLLING STATIONS, CHECKING VOTER IDS, ISSUING BALLOTS AND ASSISTING VOTERS AS NEEDED. WE ARE TOLD TRAINING WILL BE PROVIDED YOU MUST BE A REGISTERED VOTER IN THE COUNTY OR AN ADJOINING COUNTY. MORE DETAILS CAN BE FOUND ON SC VOTES DOT GOV. RIGHT NOW, CYCLISTS ACROSS THE UPSTATE ARE GEARING UP FOR THE INAUGURAL GREENVILLE CYCLING CLASSIC PRESENTED BY PRISMA HEALTH. SKY4 IS LIVE OVER THE FESTIVITIES IN DOWNTOWN GREENVILLE. EVENTS HAVE BEEN TAKING PLACE THROUGHOUT THE AFTERNOON AND YOU CAN SEE SOME OF THE CYCLISTS RIGHT THERE. TURNING THAT CORNER AT 655, THE WOMEN’S PROFESSIONAL BICYCLE RACE WILL START. THEN AT 805, IT’S THE MEN’S TURN. THE EVENT WILL BE ON A ONE KILOMETER COURSE THAT FEATURES TIGHT TURNS LIKE THE ONE YOU JUST SAW A MOMENT AGO, AND THEN FAST STRAIGHTAWAYS LIKE YOU’RE LOOKING AT NOW AS IT WINDS ITS WAY THROUGH THE HEART OF DOWNTOWN. NOW SEVERAL ROADS ARE CLOSED FOR THIS EVENT. WE HAVE A LIST OF THOSE ROAD CLOSURES, AN
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Tax attorneys, insurance agent scams more than $4 million through tax scheme, DOJ says
Two tax attorneys and an insurance agent have been convicted of scamming millions through a tax scheme, according to the U.S. Department of Justice.(Video above: Evening headlines from WYFF News 4)The DOJ says according to court documents presented at trial, it showed that from 2011 to November 2022, Michael Elliott Kohn and Catherine Elizabeth Chollet, both attorneys and residents of St. Louis, Missouri, and David Shane Simmons, a licensed insurance agent and broker from Jefferson, North Carolina, promoted, marketed, and sold to clients a fraud tax scheme known as the "Gain Elimination Plan."According to the DOJ, Kohn and Chollet made up fake fees by concealing their clients' income from the IRS by raising business expenses through fake royalties and management fees. Those fees were paid to a limited partnership owned by a charity.Kohn and Chollet advised their clients that the Plan's partnership was required to get life insurance to cover the income that was given to the organization, according to the DOJ.Simmons earned more than $2.3 million in commissions from selling the insurance policies, giving more than $1 million to Kohn and Chollet, the DOJ says.According to the DOJ, Simmons also filed false personal tax returns that underreported his business income and raised his business expenses, loosing of more than $480,000 in taxes.The DOJ says Simmons, Kohn, and Chollet caused a tax loss to the IRS of more than $4 million in total.“Tax fraud is not just a crime against the government,” said U.S. Attorney King. “It’s a betrayal of trust to every honest taxpayer. Today’s guilty verdict sends a clear message that we will not tolerate tax fraudsters who promote and operate fraudulent tax schemes. Their conduct compromises the integrity of our tax system and burdens the rest of us with the weight of their deceit.”According to the DOJ, a sentencing has not been set for all three defendants, but they each face a maximum penalty of five years in prison for the conspiracy charge and a maximum penalty of three years in prison for each charge of aiding and assisting in the preparation of false tax returns.Simmons also faces a maximum sentence of three years in prison for each count of filing false personal tax returns, the DOJ says.“The defendants’ use of tax schemes was clearly intended to conceal income from the IRS,” said Special Agent in Charge Eakins. “Today’s verdict reinforces our commitment to every American taxpayer that IRS CI special agents will continue to identify and help bring to prosecution those who promote illegal schemes designed to evade the payment of taxes.”

Two tax attorneys and an insurance agent have been convicted of scamming millions through a tax scheme, according to the U.S. Department of Justice.

(Video above: Evening headlines from WYFF News 4)

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The DOJ says according to court documents presented at trial, it showed that from 2011 to November 2022, Michael Elliott Kohn and Catherine Elizabeth Chollet, both attorneys and residents of St. Louis, Missouri, and David Shane Simmons, a licensed insurance agent and broker from Jefferson, North Carolina, promoted, marketed, and sold to clients a fraud tax scheme known as the "Gain Elimination Plan."

According to the DOJ, Kohn and Chollet made up fake fees by concealing their clients' income from the IRS by raising business expenses through fake royalties and management fees. Those fees were paid to a limited partnership owned by a charity.

Kohn and Chollet advised their clients that the Plan's partnership was required to get life insurance to cover the income that was given to the organization, according to the DOJ.

Simmons earned more than $2.3 million in commissions from selling the insurance policies, giving more than $1 million to Kohn and Chollet, the DOJ says.

According to the DOJ, Simmons also filed false personal tax returns that underreported his business income and raised his business expenses, loosing of more than $480,000 in taxes.

The DOJ says Simmons, Kohn, and Chollet caused a tax loss to the IRS of more than $4 million in total.

“Tax fraud is not just a crime against the government,” said U.S. Attorney King. “It’s a betrayal of trust to every honest taxpayer. Today’s guilty verdict sends a clear message that we will not tolerate tax fraudsters who promote and operate fraudulent tax schemes. Their conduct compromises the integrity of our tax system and burdens the rest of us with the weight of their deceit.”

According to the DOJ, a sentencing has not been set for all three defendants, but they each face a maximum penalty of five years in prison for the conspiracy charge and a maximum penalty of three years in prison for each charge of aiding and assisting in the preparation of false tax returns.

Simmons also faces a maximum sentence of three years in prison for each count of filing false personal tax returns, the DOJ says.

“The defendants’ use of tax schemes was clearly intended to conceal income from the IRS,” said Special Agent in Charge Eakins. “Today’s verdict reinforces our commitment to every American taxpayer that IRS CI special agents will continue to identify and help bring to prosecution those who promote illegal schemes designed to evade the payment of taxes.”