Charles Bolton, an investment adviser from Memphis, Tennessee, was sentenced to 15 months in prison and a fine of $3 million by New York City Federal Court for conspiring to defraud the U.S. Internal Revenue Service (IRS) with fraudulent tax shelters marketed by accounting firm Ernst & Young (E&Y).
It was alleged that Bolton implemented two fraudulent tax shelters between 1999 and 2002 through his multiple companies throughout the states.
The purported tax shelters which Bolton marketed, allowed wealthy individuals to evade paying taxes to the IRS by paying a percentage of their income to Bolton’s Contingent Deferred Swap (“CDS”) and CDS Add-On.
On a similar case in which Bolton also has connections to:
In July 2003, E&Y agreed to pay $15 million to settle further IRS investigations into their aggressive tax shelters, and their “Value Ideas Produce Extraordinary Results” or VIPER program.