Episode 2: The Chrisley Con: How a Lavish Lifestyle and Fake Loans Led to Tax Fraud and Bankruptcy

Tax Crime Junkies

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