Wednesday, November 11, 2009

Woman Indicted For Using Mortgage Company to Defraud IRS

Shelley Lee Milless, 38, Chaska, Minnesota, pleaded guilty in federal court to preventing the Internal Revenue Service (IRS) from collecting more than $900,000 in employment taxes from her ex-husband's mortgage brokerage company. Milless pleaded guilty before United States District Court Judge Paul Magnusonto one count of conspiracy to impair and impede the lawful functioning of the IRS. Milless was charged on October 30, 2009.

In her plea agreement, Milless admitted conspiring with her then-husband, Timothy Lynn Beliveau, 41, Mound, Minnesota, to impede the IRS from collecting $901,985.94 in income tax, Federal Insurance Contributions Act tax, and Medicare tax collected from employees of American Alliance Mortgage Group between October 1, 2002, and September 30, 2005. Instead, Milless used those funds for her personal benefit.

To prevent the IRS from collecting the taxes, Milless incorporated a shell company, American Alliance Mortgage Realty & Title, to which the assets of Alliance Mortgage Group were transferred. Milless knew the transfer had no business purpose other than to deplete American Alliance Mortgage Group of its assets, thereby impairing the ability of the IRS to collect the taxes owed.

For her crime, Milless faces a potential maximum penalty of five years in federal prison. Judge Magnuson will determine her sentence at a future date.

Milless' former husband, Timothy Lynn Beliveau, was indicted last month on 12 criminal counts, including mail fraud and willful failure to account for and pay over the same taxes Milless impaired the IRS from collecting.

The case against Milless is the result of an investigation by the IRS-Criminal Investigation Division and the U.S. Postal Inspection Service. It is being prosecuted by Assistant U.S. Attorney David J. MacLaughlin.

mortgage fraud