A federal grand jury has indicted Todd and Julie Chrisley, the stars of the reality television show Chrisley Knows Best, on multiple counts of conspiracy, Bank fraud, wire fraud, and tax evasion. The Chrisleys’ accountant, Peter Tarantino, has also been indicted on tax-related offenses.

“Todd and Julie Chrisley are charged not only with defrauding a number of banks by fraudulently obtaining millions of dollars in loans, but also with allegedly cheating taxpayers by actively evading paying federal taxes on the money they earned,” said U.S. Attorney Byung J. “BJay” Pak. “Celebrities face the same justice that everyone does.  These are serious federal charges and they will have their day in court.”

“The tax charges in this indictment serves notice that the Internal Revenue Service has zero tolerance for individuals who attempt to shirk their tax responsibilities. This action is also part of a much larger and coordinated effort by the IRS and Department of Justice to aggressively find and crack down on individuals who try to conspire with others to hide their income and then lie to federal agents when confronted. Honest and law abiding taxpayers are fed up with the likes of those who use deceit and fraud to line their pockets at their expense,” said Thomas J. Holloman, III, Special Agent in Charge of the Atlanta Field Office.

Below are some of the facts alleged in the grand jury indictment. The Defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.

Background

Defendants were a married couple who, at one point, resided in the state of Georgia, and at a later point, in the state of Tennessee.

Peter Tarantino (“the CPA”) was a Certified Public Accountant and owner of CPA Tarantino, an accounting firm based in Roswell, Georgia.

Beginning in 2015, Defendants engaged the services of the CPA to work as their accountant.

From 2008 through 2012, Defendants controlled a Georgia company named “Chrisley Asset Management,” which earned millions of dollars in commissions and fees from managing foreclosed properties that were later sold to third parties.

Beginning in 2013, Defendants controlled a company named “7C’s Productions.”

Beginning in approximately 2014, Defendants, together with various family members, starred in the reality television show Chrisley Knows Best and appeared on other television and radio programs.

Over the years, various entertainment and production companies paid millions of dollars to Defendants, the vast majority of which was deposited into 7C’s Productions bank accounts.

The tax returns

Between 2009 and 2012, Defendants filed their tax returns as follows:

2009: Defendants filed as married filing separately. Defendant Wife reported a tax due of $701,249 and Defendant Husband reported a tax owing $400,000.

2010 – 2013: Defendants filed as married filing jointly, showing taxes owed of $0, $50,073, and $23,959, respectively.

The tax debt

Defendants did not timely submit tax payments to the IRS when filing their 2009, 2011, 2012, 2013, 2014, or 2015 tax returns.

The IRS placed Defendants in collection status for unpaid federal income taxes. These collection actions were stayed from the time that Defendant entered bankruptcy proceedings in 2012 until the bankruptcy action was discharged in 2015.

Afterwards, IRS Revenue Officers filed liens or levies in counties in which Defendants lived or owned property in attempts to collect the back taxes owed.

Grand jury charges

Count One & Two
Conspiracy to Commit Bank Fraud and Bank Fraud
(18 U.S.C. § 1349, 18 U.S.C. § 1344 and § 2)

From at least as early as 2007 through approximately 2012, Defendants allegedly conspired to defraud numerous banks by providing the banks with false information such as personal financial statements containing false information, and fabricated bank statements when applying for and receiving millions of dollars in loans.

After fraudulently obtaining these loans, the Defendants allegedly used much of the proceeds for their own personal benefit.

Count Seven & Eight
Wire Fraud Conspiracy and Wire Fraud
(18 U.S.C. § 1349, 18 U.S.C. § 1343 and § 2)

In 2014, two years after the alleged bank fraud scheme ended, Defendants allegedly used fabricated bank statements and a fabricated credit report that had been physically cut and taped or glued together when applying for and obtaining a lease for a home in California.

Count Nine
Conspiracy to Defraud the United States
(18 U.S.C. § 371)

The Defendants, knowing that they owed hundreds of thousands of dollars to the IRS for the 2009 tax year, sought to hide their income from the IRS by directing third parties to send millions of dollars to 7C’s Productions.

During the IRS collections process, Defendant removed her name off of a newly created 7C’s Productions bank account, and sought to hide future income from the IRS.

Throughout the conspiracy, Defendants made large personal expenditures while knowing they had significant tax liabilities and while claiming to the IRS that they had financial difficulties preventing them from paying those tax liabilities.

Count Ten
Tax Evasion
(26 U.S.C. § 7201 and 18 U.S.C. § 2)

From 2010 through 2018 Defendants aided and abetted by each other and another individual, willfully attempted to evade and defeat the payment of income tax due and owing to the United States of America for the 2009 tax year by committing the following affirmative acts, among others: (a) using a nominee business entity to conceal income, (b) using nominee bank accounts to conceal income and pay expenses, and (c) providing false information to IRS employees.

Count Eleven & Twelve
Aiding the Filing of False Tax Return
(26 U.S.C. § 7206(2))

The CPA did willfully aid and assist in, and procure, counsel, and advise the preparation and presentation to the IRS, a U.S. Corporate Tax Return, Form 1120S, for 7C’s Productions. That document was false and fraudulent as to material matters in that it omitted revenue generated by 7C’s Productions as well as distributions to its owners, whereas the CPA then and there knew that 7C’s Productions had in fact generated revenue and had made distributions to its owners during the 2015 and 2016 tax years.

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