A federal grand jury in Mississippi has indicted a Florida financial advisor, Stephen T. Mellinger III, for allegedly operating an illegal tax shelter, stealing client funds, and engaging in money laundering. The indictment, unsealed yesterday, details Mellinger’s alleged actions spanning several years.
Mellinger, a securities broker and insurance salesman, is accused of conspiring with others to defraud the IRS through the promotion of an illegal tax shelter. He allegedly advised clients to transfer money to a company he controlled, falsely claiming the transfers as “royalty” deductions on their tax returns.
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While clients received their money back, Mellinger allegedly pocketed over $3 million in fees from this scheme.
The indictment further alleges that Mellinger exploited a 2016 government seizure of funds from some of his clients, who were involved in a separate healthcare fraud scheme.
Mellinger reportedly conspired to steal a portion of these seized funds, which he then laundered, using some of the proceeds to purchase a home in Florida.
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Mellinger now faces multiple charges, including conspiracy to defraud the United States, aiding in the preparation of false tax returns, conspiracy to commit wire fraud, and money laundering. If convicted, he could face significant prison time.
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