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US Man Sentenced for Fraud and Tax Evasion – Ordered to pay $1.4 million to the IRS


Edward C. Wagner of Texas was sentenced to 18 months in prison after pleading guilty to fraud and tax evasion. From 2007 to 2016, the now 60-year-old Wagner operated multiple entities that he sought to raise capital for and collected almost $650,000 from investors in three different states. He operated the companies EcoChem, Leaf23, Nutrecs, and Pharmacogenetics but feds say, “He did not conduct any significant amount of business,” instead Wagner would use the money he received from investors for his own personal expenditures.

False Loans and Tax Evasion

Federal agents said that Wagner, ” Wagner intentionally disguised his actual income by hiding his sources, using nominee financial institution accounts, dealing extensively in cash and cashier’s checks, and creating a false loan document.” He also managed to accrue almost $750,000 of unpaid taxes from 2007-2010. Tax evasion is a serious offense, and those charged could face a penalty of up to a 5-year prison sentence.  In addition to this, the fraud committed is also a felony charge that can lead to probation, parole, prison time, and forces the person charged to pay restitution to their victims.

Restitution for Victims

After pleading guilty, Wagner is being ordered to pay $76,733 in restitution to his victims, and roughly $1 million to the IRS, which is in addition to the 18 months he will spend in prison. We have seen the IRS and other Tax Bureaus in the United States start to crack down on fraud and tax evasion cases like this. Additionally, the U.S. is looking to beef up IRS funding, which would allow them to crack down more frequently, and harder on those looking to take advantage of the tax system. The IRS also said in a statement that they, “Remain committed to prosecuting those who seek to enrich themselves through Fraud and not paying their taxes.”


If you ever find yourself in a predicament, DSJ offers consulting services to help navigate the challenging legal environment of today. Our experts know tax fraud definitions, IRS investigative resources, and also have experience dealing with IRS agents.  Don’t swim through these troubled waters alone, give us a call to speak with an expert Certified in Financial Forensics today!

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