Source: United States Attorneys General
A Colorado dentist pleaded guilty today to six counts of tax evasion related to his use of an illegal tax shelter.
According to court documents and statements made in court, since 2014, Ryan Ulibarri owned and operated Ulibarri Family Dentistry in Fort Collins, Colorado. In 2016, Ulibarri purchased an abusive-trust tax shelter for $50,000. The tax shelter involved concealing income and creating false tax deductions through the use of a so-called business trust, family trust, charitable trust and a private family foundation, all of which Ulibarri created and controlled. From 2017 through 2022, Ulibarri used this tax shelter to conceal from the IRS over $3.5 million in income he earned from his dental practice.
To set up the tax shelter, Ulibarri, as the purported trustee, signed trust instruments purporting to create the three trusts and foundation, and he opened bank accounts in the name of each. He further recruited friends to falsely sign his trust instruments as the purported creators of the trusts. Ulibarri then transferred majority ownership of his dental practice to the business trust. Ulibarri did this despite having been warned by attorneys and CPAs that, in Colorado, a trust could not own a dental practice.
He then transferred over $3 million he earned from his dental practice into the bank accounts of the various trusts and foundation to create the illusion that the funds belonged to those entities. In reality, Ulibarri retained complete control over the funds and used the funds to pay for personal expenses including his home mortgage, credit card bills, boats and professional baseball season tickets. Finally, he filed false tax returns for himself, his dental practice, the trusts and foundation that falsely reported the income he earned from his dental practice as income of the trusts. On those tax returns Ulibarri also claimed fraudulent deductions for his personal living expenses which he disguised as trust expenses and charitable donations.
In total, Ulibarri is alleged to have caused a tax loss to the IRS of over $1 million.
Ulibarri is scheduled to be sentenced on June 17. He faces a maximum penalty of five years in prison for each count of tax evasion as well as a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and Special Agent in Charge Amanda Prestegard of IRS Criminal Investigation’s Denver Field Office made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Amanda R. Scott and Lauren K. Pope and Assistant Chief Andrew J. Kameros of the Tax Division are prosecuting the case.