A Hillsboro, Oregon promoter was convicted today following a jury trial of making, passing and submitting fake financial instruments to a financial institution and the U.S. Treasury and failing to file tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the superseding indictment and the evidence presented at trial, from approximately 2008 through 2015, Winston Shrout, 69, formerly of St. George, Utah, created and submitted more than 1000 bogus financial instruments with the intent of defrauding financial institutions and the U.S. Treasury. Shrout held seminars and private meetings to promote and market the use of these fake financial instruments to pay off debts, including federal taxes. Shrout sold recordings of his seminars, templates for fake financial instruments and other materials through his website.
The evidence presented at trial also proved that Shrout failed to file his 2009 through 2014 tax returns despite earning $562,224 from presenting at seminars, licensing fees associated with the sale of his products and annual pension payments.
Sentencing is scheduled for Aug. 1. Shrout faces a statutory maximum sentence of 25 years in prison for each count of making a fake financial instrument and one year in prison for each count of failing to file a tax return. He also faces a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Stuart Wexler and Lee Langston of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.