Houston Attorney Sentenced to Prison for Offshore Tax Evasion Scheme

Conspired to Secretly Bring to the US More Than $18 Million in Untaxed Money Held in Foreign Banks

A Houston, Texas, attorney was sentenced to 24 months in prison for conspiring to defraud the United States and tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ryan K. Patrick for the Southern District of Texas.

In September 2019, a jury convicted Jack Stephen Pursley, also known as Steve Pursley, of conspiring with a client to repatriate more than $18 million in untaxed income that the client had earned through his company, Southeastern Shipping.  According to the evidence presented at trial, Pursley knew that the client had never paid taxes on these funds so Pursley designed and implemented a scheme to transfer the untaxed funds from Southeastern Shipping’s business bank account, located in the Isle of Man, to the United States.  Pursley helped to conceal the movement of funds from the Internal Revenue Service (IRS) by disguising the transfers as stock purchases in United States corporations owned and controlled by Pursley and his client.

Pursley received more than $4.8 million and a 25% ownership interest in the co-conspirator’s ongoing business for his role in the fraudulent scheme.  In 2009 and 2010, Pursley evaded the assessment of and failed to pay the taxes he owed on these payments by, among other means, withdrawing the funds as purported non-taxable loans and returns of capital.  Pursley used the money he garnered from the fraudulent scheme for personal investments, and to purchase personal assets, including a vacation home in Vail, Colorado, and property in Houston, Texas.

In addition to the term of imprisonment, U.S. District Judge Lynn N. Hughes ordered Pursley to serve 2 years of supervised release and to pay approximately $1,788,753 in restitution to the United States.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Patrick commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Sean Beaty, Grace Albinson, and Jack Morgan of the Tax Division, who prosecuted the case.

Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.

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    The executive summary of a report by the Department of Justice’s Office of Professional Responsibility (OPR) was released today to affected victims.  The summary, which is available on the Justice Department website, provides the essential details about the findings of OPR’s investigation into the U.S. Attorney’s Office for the Southern District of Florida’s resolution of its 2006–2008 federal criminal investigation of Jeffrey Epstein and its interactions with victims during the investigation. 
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  • Statement By Department Of Justice Spokesperson Kerri Kupec On The Execution Of William Emmett Lecroy Jr.
    In Crime News
    Department of Justice Spokesperson Kerri Kupec has issued the following statement.
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  • Justice Department Files Lawsuit Against Father & Son Moving & Storage in Billerica, Massachusetts, for Unlawfully Auctioning Off Belongings of Deployed Servicemember
    In Crime News
    The Justice Department today filed a lawsuit in the District of Massachusetts alleging that PRTaylor Enterprises LLC, a company doing business as Father & Son Moving & Storage (Father & Son), violated the Servicemembers Civil Relief Act (SCRA) by failing to obtain a court order before auctioning off the entire contents of a U.S. Air Force Technical Sergeant’s two storage units while he was deployed overseas.
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  • Justice Department Announces Civil Investigation into Louisiana’s Prisoner Release Practices
    In Crime News
    The Justice Department announced today that it has opened a statewide civil investigation into Louisiana’s prisoner release practices.
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  • Environment and Natural Resources Division Distributes Memorandum Summarizing Enforcement Policies and Priorities
    In Crime News
    On Friday, the Environment and Natural Resources Division publicly distributed a memorandum summarizing important principles and priorities for environmental enforcement. The memorandum, issued Jan. 14 by outgoing Assistant Attorney General Jeffrey Bossert Clark, emphasizes that robust enforcement of our nation's environmental laws remains one of the division’s highest priorities. It emphasizes that, when engaged in criminal and civil enforcement, it is important that the division continue to enhance the fair and impartial application of the law.
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  • Department Of Justice And U.S. Patent And Trademark Office To Host Public Workshop On Promoting Innovation In The Life Science Sector
    In Crime News
    The Justice Department’s Antitrust Division (DOJ) and the U.S. Patent and Trademark Office (USPTO) will host a virtual public workshop on Sept. 23rd and 24th, 2020 to discuss the importance of intellectual property rights and pro-competitive collaborations for life sciences companies, research institutions, and American consumers. 
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  • Termination of PRC-Funded Propaganda Programs
    In Crime Control and Security News
    Michael R. Pompeo, [Read More…]
  • Indiana Man Pleads Guilty to Distributing Pesticides
    In Crime News
    An Indiana man who distributed unregistered pesticides to the tenants and managers of an apartment building he owned has pleaded guilty to three counts of violating the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA).
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  • The Department of Justice Files Sexual Harassment Lawsuit Against Owner of Rental Properties in Elizabeth, New Jersey
    In Crime News
    The Department of Justice announced today that it has filed a lawsuit alleging that the owner of rental properties in Elizabeth, New Jersey violated the Fair Housing Act by subjecting tenants to sexual harassment. 
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  • Sanctioning Supporters of Iran’s Petroleum and Petrochemical Sectors
    In Crime Control and Security News
    Michael R. Pompeo, [Read More…]
  • Federal Jury Convicts Illinois Man for Bombing the Dar al-Farooq Islamic Center
    In Crime News
    Yesterday, a federal jury returned a guilty verdict against Micheal Hari, 49, for his role in the bombing of the Dar al-Farooq Islamic Center in Bloomington, Minnesota, on Aug. 5, 2017. The announcement was made by U.S. Attorney for the District of Minnesota Erica H. MacDonald, Assistant Attorney General Eric S. Dreiband of the Department of Justice’s Civil Rights Division, and Special Agent in Charge of the FBI's Minneapolis Division Michael Paul.
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  • Deutsche Bank Agrees to Pay over $130 Million to Resolve Foreign Corrupt Practices Act and Fraud Case
    In Crime News
    Deutsche Bank Aktiengesellschaft (Deutsche Bank or the Company) has agreed to pay more than $130 million to resolve the government’s investigation into violations of the Foreign Corrupt Practices Act (FCPA) and a separate investigation into a commodities fraud scheme.
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