TEXAS
A federal judge sentenced a Houston attorney to two years in prison for conspiring to defraud the United States and tax evasion, according to prosecutors.
In September 2019, a jury convicted Jack Stephen Pursley, also known as Steve Pursley, of conspiring with a client to bring back more than $18 million in untaxed income that the client had earned through his company, Southeastern Shipping, officials stated.
In addition to the term of imprisonment, U.S. District Judge Lynn N. Hughes also ordered Pursley to pay approximately $1.7 million in restitution to the United States.
According to the evidence presented at trial, Pursley knew that the client had never paid taxes on these funds so Pursley designed and implemented a scheme to transfer the untaxed funds from Southeastern Shipping’s business bank account, located in the Isle of Man, to the United States.
Pursley helped to conceal the movement of funds from the IRS by disguising the transfers as stock purchases in United States corporations owned and controlled by Pursley and his client.
Pursley received more than $4.8 million and a 25% ownership interest in the co-conspirator’s ongoing business for his role in the fraudulent scheme.
In 2009 and 2010, officials stated Pursley evaded the assessment of and failed to pay the taxes he owed on these payments by, among other means, withdrawing the funds as purported non-taxable loans and returns of capital.
Pursley used the money he garnered from the fraudulent scheme for personal investments, and to purchase personal assets, including a vacation home in Vail, Colorado, and property in Houston, Texas.