FOR IMMEDIATE RELEASE TAX

TUESDAY, OCTOBER 10, 2006 (202) 514-2007

WWW.USDOJ.GOV TDD (202) 514-1888

Promoters Sentenced to Prison for Tax

Fraud Scheme
WASHINGTON — A federal judge in San Diego sentenced Susan E. O’Brien, a
professional tax preparer who operated The O’Brien Group, to 10 years and five
months in prison. As part of the sentence, she will also serve a three-year term of
supervised release and pay restitution in the amount of $113,179.

Judge M. James Lorenz also sentenced co-defendants Robert Richard Evans and
William Dean Cook to prison terms of 78 and 24 months, respectively. Both Evans
and Cook will each serve a three-year term of supervised release.

“Dishonest tax professionals harm the good reputation of honest ones and cheat all
honest taxpayers,” said Eileen J. O’Connor, Assistant Attorney General for the
Department of Justice’s Tax Division. “People who prepare fraudulent returns or
peddle tax scams can expect to be prosecuted, convicted and sent to prison.”

In July 2003, O’Brien, Evans, Cook and five others were charged in a 78-count
indictment with various tax crimes related to tax years 1996-2002. According to the
indictment and trial evidence, O’Brien prepared numerous income tax returns that
claimed false business deductions and Evans promoted, sold and managed domestic
trusts that were used by clients to conceal income and assets from the IRS.

On May 2, 2006, after an eleven-week trial, the jury convicted O’Brien, Evans and
Cook of attempting to evade the taxes of a former client, Dr. Kevin Marie Scoggin,
for the years 1996 through 2000. Scoggin owned and operated Grand Animal
Hospital, a veterinary clinic in the San Diego area, where Cook worked as a
manager during the 1990s and early 2000s. Cook and Scoggin concealed Scoggin’s
income and assets by using one of Evans’ trusts and by holding offshore bank
accounts, maintaining bank accounts in nominee names and assigning income to
nominee entities.

“Honest return preparers and tax professionals assist taxpayers in filing their correct
tax information with the government. Blatant disregard for the law as well as for the
standards of this profession must be addressed and halted,” said Nancy Jardini,
Internal Revenue Service Chief, Criminal Investigation. “These sentences clearly
demonstrate the IRS and Department of Justice efforts to ensure tax professionals
are abiding by the law.”

The jury also convicted O’Brien and Evans of conspiracy to defraud the United
States and aiding and assisting in the filing of fraudulent tax returns. O’Brien also
was convicted of evading the payment of tax on her own income. U.S. District
Judge Lorenz found that the tax-evasion scheme resulted in a tax loss of more than
$1 million. Three employees and four clients of The O’Brien Group were convicted
of felony tax fraud charges as part of this prosecution. These defendants pleaded
guilty to tax fraud charges prior to trial and cooperated in the prosecution of
O’Brien, Evans and Cook.

###

06-685