A Florida attorney has been sentenced to eight years in prison for his involvement in a fraudulent tax scheme.
The scheme, known as “The Ultimate Tax Plan,” purported to offer high-income clients a means to reduce their taxes through false charitable deductions, according to a U.S. Department of Justice press release.
Michael L. Meyer, an attorney from Davie, Florida, along with his accomplices Rao Garuda and Cullen Fischel, capitalized on his legal and accounting expertise to promote the deceptive scheme from 2013 to 2021. By fabricating documentation and misleading clients into believing they could claim charitable donations for assets they retained control over, Meyer orchestrated a sophisticated operation that drew the attention of both law enforcement and the IRS.
The DOJ said Meyer prepared boilerplate transaction paperwork that made it appear clients had donated valuable property to charities Meyer controlled. “In fact, the clients retained complete control and use over the donated assets,” DOJ said. “Meyer wrongfully advised clients they could legally access their donated assets for their own personal use through tax-free loans and execute an “exit strategy” to buy back their donations at a significantly discounted rate. In some instances, Meyer backdated documents so that clients could claim purported donations on their prior years’ tax returns.”
Despite warnings from various sources, including the IRS, Meyer persisted in his illegal activities, even going as far as creating new entities to continue promoting his fraudulent scheme after previous legal interventions. The Justice Department’s civil suit against Meyer in 2018 marked a turning point, leading to a permanent injunction against his involvement in the Ultimate Tax Plan. However, Meyer’s attempts to obstruct justice by falsifying documents only exacerbated his legal troubles.
The financial ramifications of Meyer’s actions were staggering, with earnings exceeding $10 million, which he used to finance a lavish lifestyle, including his purchase of a multi-million-dollar estate and a luxury vehicle collection that included Lamborghinis, Rolls Royces, Mercedes Benzes, a Bentley and a Ferrari.
In addition to his prison sentence, Meyer has been ordered to serve three years of supervised release, with restitution yet to be determined. Meanwhile, his associates, Garuda and Fischel, await sentencing in the Northern District of Ohio.
