Investigation of Fraudulent Tax Shelter – Gain Elimination Plan (GEP) 

The White Law Group is investigating potential claims involving the Gain Elimination Plan (GEP). 

According to the Justice Department, a federal grand jury in Charlotte, North Carolina reportedly charged two tax attorneys and a broker/insurance agent with conspiring to defraud the United States and helping clients file false tax returns based on their promotion and operation of a fraudulent tax shelter called the Gain Elimination Plan (GEP). 

According to the indictment, from 2011 to the present two attorneys and residents of St. Louis, Missouri, and David Shane Simmons, a licensed insurance agent and broker based out of Jefferson, North Carolina, allegedly conspired to defraud the United States by promoting, marketing, and selling to clients a fraudulent tax scheme known as the Gain Elimination Plan (“GEP”).  

The defendants allegedly designed the GEP to conceal clients’ income from the IRS by fraudulently inflating business expenses through fictitious royalties and management fees. These fictitious royalties and management fees allegedly were paid, on paper, to a limited partnership largely owned by a charitable organization. The two attorneys allegedly fabricated the royalties and management fees. In total, the defendants allegedly caused a tax loss to the IRS of tens of millions of dollars. 

The attorneys also allegedly engaged in a scheme to defraud an insurance company by providing false information on insurance applications on behalf of their clients. The false information allegedly included fraudulent representations concerning the clients’ financials and the purpose of the insurance policies, according to the charges. 

The insurance company purportedly issued more than $200 million in insurance policies based on false application information. Simmons allegedly earned large commissions for selling the insurance policies, many of which he split with the two other Defendents. Simmons also allegedly filed false personal tax returns by underreporting his business income and inflating his business expenses. 

Recovery of Investment Losses 

The White Law Group is investigating potential claims involving the Gain Elimination Plan (GEP).

If you have suffered losses investing in the Gain Elimination Plan you may be able to file a complaint against your brokerage firm. Please contact the securities attorneys at The White Law Group at 1-888-637-5510 for a free consultation.      

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.    

Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.     

With over 40 years of securities law experience, including experience working at FINRA and the SEC, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions attempt to recover their investment losses.    For more information, please visit our website, whitesecuritieslaw.com.