- 7 -
filed on June 25, 1993. As of March 1995, petitioner’s unpaid
tax liabilities arising from that case had grown to approximately
$1 million, a sum which remained unpaid as of May 17, 2002.
IV. The Bankruptcy Scheme
The Bussells met with Sherman in 1991 to discuss the
Bussells’ outstanding tax and nontax liabilities. In late 1991
or early 1992, Sherman introduced the Bussells to Beaudry, and
the four of them met in petitioner’s livingroom and discussed
both the Bussells’ liabilities and aspects of petitioner’s
finances. During initial meetings with petitioner, Beaudry
suggested a two-step scheme to defraud her creditors. (In later
meetings with petitioner, as discussed infra, Beaudry expanded on
this suggestion as a method for petitioner also to accomplish her
objective of evading Federal income taxes on her income as well
as the income of entities that included at least BBL.) Under the
first step, the Bussells would change title to their assets and
form nominee corporations; i.e., corporations that ostensibly
would be owned by someone other than the Bussells but which in
fact would be owned by one or both of the Bussells. Those
corporations would then realize the income earned by the
dermatology practice in a fashion that would not allow that
income to be attributed to petitioner. Under the second step,
the Bussells would declare bankruptcy to discharge their
creditors’ claims. Beaudry finalized these suggestions in a
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011