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Arizona man sentenced to prison after failing to report almost $10m offshore investment income

12/10/2018 News Team

An Arizona man, who formerly resided in Pagosa Springs, Colorado, was sentenced in the US District Court for the District of Colorado to eighteen months in prison for filing a false tax return, and failing to report almost $10 million in investment income from offshore bank accounts.

According to court documents, William Whittington, 68, failed to report $9.7 million in investment income generated through two offshore bank accounts in Liechtenstein between 2003 and 2010.

He also filed a false individual income tax return in 2010, on which he underreported income received from his offshore accounts and through the payment of his personal expenses.

From 2010 to 2012, he directed the Springs Resort & Spa, in Pagosa Springs, Colorado, a business which was then managed by Mr Whittington and his family, to pay over $1 million of his personal expenses. The total additional tax due for those three years based on Whittington’s is $364,994.00. Combined with the tax loss from his unreported investment income, his fraudulent activities resulted in a $1.8 million tax loss.

Mr Whittington, a competitive race car driver, was previously sentenced to prison in 1987 for evading income tax and importing multiple tons of marijuana. 

In addition to the imprisonment, U.S. District Court Judge Robert E. Blackburn ordered Mr Whittington to serve one year of supervised release. He also paid approximately $1.8 million in restitution to the Internal Revenue Service as a condition of his plea agreement.

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