Executive pleads guilty to $200M tax fraud
A Michigan executive has entered a guilty plea in an Oregon court to charges that he participated in defrauding the U.S. government of more than $200 million in tax revenue.
John Parrott, entered his plea Thursday. Parrott is the former general counsel of Mt. Pleasant, Mich.-based GeoStar Corp., the parent of ClassicStar LLC.
ClassicStar offered wealthy individuals a way to reduce or eliminate income taxes by investing in a thoroughbred horse breeding program. Investors in the program claimed false tax deductions of more than $500 million, depriving the federal government of more than $200 million in tax revenue, according to the U.S. government.
Parrott faces a maximum sentence of five years in prison. Several other executives with the horse breeding program have pled guilty and await sentencing.
Filed under: term by Forest