Colorado man sentenced for obstructing tax administration | USAO-SD

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United States Attorney Alison J. Ramsdell announced that a Longmont, Colorado man convicted of obstructing the Internal Revenue Service was sentenced on June 21, 2022 by U.S. District Judge Lawrence L. Piersol.

Loren Brown, 86, was sentenced to three years probation, a fine of $3,000 and a special contribution to the Federal Fund for Victims of Crime in the amount of $100.

Brown was indicted by a federal grand jury on July 17, 2017. He pleaded guilty on August 10, 2020.

The conviction stems from incidents that occurred in April 2004 when Theodore Nelson and his son, Steven Nelson, created more than 25 shell trusts to hide their income and assets from the Internal Revenue Service (IRS), thereby avoiding assessment and payment of federal income taxes. . The Nelsons used forms created by Brown. The trusts were designed, in part, to make it difficult for the IRS to determine the Nelsons’ federal income tax. The Nelsons appointed John Sheridan and Loren Brown as trustees and successor trustees of the trusts until Sheridan’s death in 2011. In this way, the Nelsons were able to put many layers between themselves and their assets/income. Brown’s agreement to act as successor trustee helped the Nelsons hide their income and assets from the IRS.

The Nelsons reside in Letcher, South Dakota. Loren Brown and his co-defendant, Randy L. Garriss, acted as signatories for South Dakota bank accounts associated with Nelson’s trusts and carried out most of their actions on behalf of the Nelsons’ tax evasion in South Dakota.

Among other acts, Brown and Garriss corruptly attempted to obstruct and obstruct the proper administration of domestic tax laws by sending the IRS a protest and request for administrative review on behalf of the Nelsons. Garriss signed on his own behalf and that of Brown as trustees of Steve Nelson and the Nelsons’ trusts. The letter was received by the IRS on January 5, 2016.

This case was investigated by the IRS Criminal Investigation. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.

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