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TAMPA — Two Tampa business executives, Duane Crithfield, 65, and Stephen Donaldson Sr., 67, have been indicted with one count of conspiracy to defraud the United States, according to a release from the U.S. Attorney's Office for the Middle District of Florida.
If convicted, each faces up to five years in federal prison and a fine of up to $250,000.
According to the indictment, between 2001 and March 2008, Crithfied, Donaldson and others carried out a fraudulent offshore tax strategy, which they called the Business Protection Plan. They carried out the scheme through offshore entities Foster & Dunhill, Offshore Trust Service, Fidelity Insurance Company, and Citadel Insurance Company.
The two men allegedly set up the plan so their affluent clients could claim business expense deductions based on sham insurance premium payments made to the offshore entities. The insurance premiums were not based on actual business risks, but merely allowed clients to deduct them from their corporate income tax returns. According to the release, after claiming the deduction, clients would get about 83-85% of the premium back.
The case will be prosecuted by Jay G. Trezevant and Matthew J. Mueller, assistant U.S. attorneys.
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