A Puerto Rican chiropractor pleaded guilty today to filing a false tax return related to his use of an illegal tax shelter.
According to court documents and statements made in court, Stuart Bernsen, formerly of Westmont, Illinois, was the former CEO and co-founder of a company that managed a network of over 50 chiropractic clinics across the Midwest. Bernsen paid to establish an illegal tax shelter, which he used to conceal income through a series of abusive trusts and a fraudulent charitable foundation. From 2019 through 2021, Bernsen used this tax shelter to avoid paying nearly $1.3 million in tax.
The tax shelter was designed to make it appear as if Bernsen had permanently transferred to his trusts and charitable foundation his ownership interest of various business entities, including his chiropractic business. In reality, Bernsen maintained control of the chiropractic business and other business entities, and he continued to benefit from the income they generated. Bernsen used the trusts to make various personal purchases, including personal residences, credit card bills, a luxury vacation and a boat. Bernsen also filed false tax returns for the trusts, erroneously claiming that his personal purchases were tax-deductible expenses related to the administration of the trusts.
Bernsen pleaded guilty to one count of willfully filing a false tax return.
Bernsen is scheduled to be sentenced on October 2 and faces a maximum of three years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division and U.S. Attorney Andrew S. Boutros for the Northern District of Illinois made the announcement.
IRS-CI is investigating the case.
Trial Attorneys Boris Bourget and Mahana K. Weidler of the Criminal Division’s Tax Section are prosecuting the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
