On May 14, 2019, a federal jury in Las Vegas, Nevada, convicted Craig P. Orrock, a former attorney and former Internal Revenue Service (IRS) employee, of tax evasion and obstructing the internal revenue laws.
According to court documents and evidence presented at trial, starting in the early 1990s, Orrock, evaded the payment of his federal income taxes and obstructed IRS efforts to collect those taxes. Specifically, it was alleged that Orrock claimed false theft loss deductions, filed false amended tax returns, and filed a false offer in compromise with the IRS.
Further, Orrock filed federal individual income tax returns for the years 1993 through 2015, but failed to pay the income taxes reported as due. He attempted to prevent the IRS from collecting the reported income taxes through the use of nominee entities, bank accounts and trusts to hide his income and assets from IRS collection officers.
Orrock attempted to evade the assessment of a large part of the income tax he owed for 2007, by concealing from the IRS both the ownership of real estate he held through a nominee known as Arville Properties LLC as well as the proceeds from the sale of the property.
From 1993 through 2015, Orrock evaded the payment of over $500,000 in federal income taxes.
Orrock faces up to five years in prison on each of the first two counts and up to three years in prison on the third count, as well as a period of supervised release, restitution and monetary penalties. Sentencing is scheduled for Aug. 26.