Episode 2: The Chrisley Con: How a Lavish Lifestyle and Fake Loans Led to Tax Fraud and Bankruptcy
Manage episode 398423213 series 3550302
Today’s episode reveals that Julie and Todd Chrisley, a couple with a successful TV show, lived a lavish lifestyle using loans they took out illegally from banks. They defrauded banks by creating fake documents and claiming to have money in other banks. They spent about 36 million dollars on luxury trips, hotels, wear, and apartments. Whenever a loan was due, they would defraud another bank and use the loan to pay back the previous one. Todd eventually filed for bankruptcy, walking away from about 20 million dollars in loans. Additionally, the couple failed to pay taxes owed from 2009 and 2013-2016 by registering their company under different names and creating false documents.
Talking Points:
Asset Management real estate firm between couple and third party Mark Braddock to manage and sold foreclosed properties and earned millions
Created fabricated bank documents as early as 2007 to obtain loans from community banks
Emails obtained by the FBI revealed their fraudulent activities
We also discuss the legality of Income Shifting
The Chrisley’s received their pay from their asset management company
They split the money and sent it to Chrisley and Company to avoid taxes
The assignment of income doctrine holds that a taxpayer may not avoid tax by assigning the right to income to another
Misuse of Funds
Chrisleys spent money on travel, properties, clothes, and luxury items
Repeated loan frauds to pay back loans due
Targeted Georgian community banks because it made the loan frauds easier
Chrisley’s had financial difficulties and became insolvent
Todd filed for bankruptcy and walked away from 20 million dollars total loans
Mark and the Chrisleys ended their partnership right before the lawsuit in 2012
SODDI Defense
Chrisleys claimed Mark Braddock was responsible for all the fraud that’s coming up in court
Mark got immunity for cooperating with the FBI and IRS
Emails showed Todd gave express instructions to Mark to use the accountant's stationary and signature
Todd and Julie's company, 7Cs Productions
Todd and Julie's control over the company
The couple's tax default in 2009
Listing Julie as the sole owner to evade IRS liens
False tax filings and evasion
Filing as married filing separately
False tax filings in 2011-2013
Collection status and Todd's bankruptcy proceedings
Hiring accountant Tarantino
Fabrication of documents and further tax evasion
Warning from Tarantino about IRS investigation
Fabrication of documents to make Julie's mother the sole owner of 7Cs Productions
Creation of new bank account for 7Cs to evade taxes
Todd's audacious claim on radio interview
Continued borrowing and false representations
The Chrisleys' borrowing activities
Loan taken out in March 2017
False statements to IRS Revenue Officer
Filing of false tax returns by Tarantino
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