Allegedly Conspired to Repatriate More Than $18 Million in Untaxed Money Held in Foreign Bank Accounts
federal grand jury sitting in Houston, Texas returned an indictment
today charging a Houston attorney with one count of conspiracy to
defraud the United States and three counts of tax evasion, announced
Principal Deputy Assistant Attorney General Richard E. Zuckerman of the
Department of Justice’s Tax Division and U.S. Attorney Ryan K. Patrick
for the Southern District of Texas.
According to the indictment, Jack Stephen Pursley, also known as Steve
Pursley, conspired with another individual to repatriate more than $18
million in untaxed earnings from the co-conspirator’s business bank
account located in the Isle of Man. Knowing that his co-conspirator had
never paid taxes on these funds, Pursley allegedly designed and
implemented a scheme whereby the untaxed funds were made to appear to be
stock purchases in United States corporations owned and controlled by
Pursley and his co-conspirator.
The indictment alleges that Pursley received more than $4.8 million and
an ownership interest in the co-conspirator’s ongoing business for his
role in the fraudulent scheme. The indictment further alleges that for
tax years 2009 and 2010 Pursley evaded the assessment of and failed to
pay the incomes taxes due on this money by, amongst other means,
withdrawing the funds as purported non-taxable loans or returns of
capital. Pursley allegedly used the money he received to purchase
personal assets, including a vacation home in Vail, Colorado and
property in Houston.
If convicted, Pursley faces a statutory maximum sentence of five years
in prison for the conspiracy count, and five years in prison for each
count of tax evasion. He also faces a period of supervised release,
monetary penalties, and restitution.
An indictment merely alleges that a crime has been committed. A
defendant is presumed innocent until proven guilty beyond a reasonable
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney
Patrick commended special agents of IRS-Criminal Investigation, who
investigated the case, and Senior Litigation Counsel Nanette Davis,
Trial Attorney Grace Albinson, and Trial Attorney Sean Beaty of the Tax
Division, who are prosecuting this case.