Posted: Aug 11, 2012 10:01 PM by Alyse Rzemek
DENVER (AP) - An Arizona man involved in a $22 million Colorado-based tax scam has been sentenced to nine years in federal prison followed by three years of supervised release.
The U.S. Attorney's Office in Denver says 77-year-old Richard Kellogg Armstrong, of Prescott, Ariz., was convicted in April of scheming with 43-year-old Elizabeth Curtis Morris to prepare tax returns for at least 20 clients who claimed fraudulent deductions to get large refunds. Morris is scheduled to be sentenced Nov. 16.
Prosecutors say Armstrong, who was one of Morris' tax clients, received more than $1.6 million from bogus returns and hid the proceeds in offshore bank accounts while recruiting for and promoting the scheme.
The Denver Post reports Armstrong must pay the IRS $1.7 million in restitution and forfeit two homes and an aircraft.