Episode 2: The Chrisley Con: How a Lavish Lifestyle and Fake Loans Led to Tax Fraud and Bankruptcy

Today’s episode reveals that Julie and Todd Chrisley, a couple with a successful TV show, lived a lavish lifestyle using loans they took out illegally from banks. They defrauded banks by creating fake documents and claiming to have money in other banks. They spent about 36 million dollars on luxury trips, hotels, wear, and apartments. Whenever a loan was due, they would defraud another bank and use the loan to pay back the previous one. Todd eventually filed for bankruptcy, walking away from about 20 million dollars in loans. Additionally, the couple failed to pay taxes owed from 2009 and 2013-2016 by registering their company under different names and creating false documents.   Talking Points: Asset Management real estate firm between couple and third party Mark Braddock to manage and sold foreclosed properties and earned millions Created fabricated bank documents as early as 2007 to obtain loans from community banks Emails obtained by the FBI revealed their fraudulent activities We also discuss the legality of Income Shifting The Chrisley’s received their pay from their asset management company They split the money and sent it to Chrisley and Company to avoid taxes The assignment of income doctrine holds that a taxpayer may not avoid tax by assigning the right to income to another Misuse of Funds Chrisleys spent money on travel, properties, clothes, and luxury items Repeated loan frauds to pay back loans due Targeted Georgian community banks because it made the loan frauds easier Chrisley’s had financial difficulties and became insolvent Todd filed for bankruptcy and walked away from 20 million dollars total loans Mark and the Chrisleys ended their partnership right before the lawsuit in 2012 SODDI Defense Chrisleys claimed Mark Braddock was responsible for all the fraud that’s coming up in court Mark got immunity for cooperating with the FBI and IRS Emails showed Todd gave express instructions to Mark to use the accountant's stationary and signature Todd and Julie's company, 7Cs Productions Todd and Julie's control over the company The couple's tax default in 2009 Listing Julie as the sole owner to evade IRS liens   False tax filings and evasion Filing as married filing separately False tax filings in 2011-2013 Collection status and Todd's bankruptcy proceedings Hiring accountant Tarantino Fabrication of documents and further tax evasion Warning from Tarantino about IRS investigation Fabrication of documents to make Julie's mother the sole owner of 7Cs Productions Creation of new bank account for 7Cs to evade taxes Todd's audacious claim on radio interview Continued borrowing and false representations The Chrisleys' borrowing activities Loan taken out in March 2017 False statements to IRS Revenue Officer Filing of false tax returns by Tarantino