A significant case involving tax evasion and conspiracy has unfolded as Thomas G. Ehr, a former associate of a defense contractor, has pled guilty to defrauding the United States government.
The court documents reveal details of the illegal activities that spanned from 2009 to approximately 2022, leading to substantial losses for the U.S. taxpayer.
Ehr’s Role in Concealing Ownership of Business Supplying Jet Fuel
According to the court proceedings, Ehr worked closely with a defense contractor who co-owned a business supplying jet fuel to U.S. military personnel in Afghanistan and the Middle East.
Ehr was tasked with managing entertainment projects funded through this business, which included various ventures in music television.
Over time, Ehr became involved in other investments tied to the contractor, including a multi-million-dollar real estate project in Mexico and a major fuel infrastructure project.
Although Ehr was aware of the defense contractor’s substantial financial interest in the business, he conspired to hide the contractor’s ownership and control.
In an attempt to obstruct the IRS’s efforts to assess and collect taxes, Ehr falsely claimed that the contractor’s wife had founded the company.
Tax Evasion and Concealment of Profits
By engaging in this conspiracy, Ehr helped the contractor evade taxes on a staggering $350 million in income, leading to an estimated tax loss of $128 million for the U.S. government.
Moreover, Ehr himself failed to file tax returns for several years, from 2010 to 2015, and neglected to make required tax payments.
This personal negligence caused a tax loss of over $700,000.
Multiple Defendants Plead Guilty in Connection with the Scheme
Ehr is the latest individual to plead guilty in connection with the defense contractor’s activities.
Several others, including Charles Squires, James Robar, Ronald Thomas, Zack Friedman, and Robert Dooner, have previously pleaded guilty to similar charges of tax evasion.
These guilty pleas highlight the extensive nature of the conspiracy.
Sentencing and Possible Penalties
Ehr now faces serious consequences. He sould receive up to five years in prison for the conspiracy charge and an additional year for the tax evasion charge. Beyond prison time, Ehr will also face restitution, supervised release, and possible monetary penalties.
A federal district court judge will determine his sentence after evaluating various statutory factors and the U.S. Sentencing Guidelines.
Ongoing Investigations and International Cooperation
This case has attracted the attention of multiple investigative bodies, including the IRS Criminal Investigation Division and the Special Inspector General for Afghanistan Reconstruction.
Assistance has also come from His Majesty’s Revenue & Customs in the United Kingdom and the Joint Chiefs of Global Tax Enforcement, a collaboration involving taxing authorities from Australia, Canada, the Netherlands, the U.K., and the U.S.
The Justice Department’s Tax Division, along with U.S. Attorney’s Office for the District of Columbia, continues to prosecute the case.