A Colorado man pleaded guilty Thursday to a years-long fraudulent investment scheme that allowed people to shield millions of dollars in taxes from the Internal Revenue Service.

Timothy McPhee, of Estes Park, pleaded guilty to conspiracy to defraud the United States, tax evasion and wire fraud, the U.S. Department of Justice announced Friday in a news release.

Prosecutors say McPhee, from 2018 to 2023, promoted a fraudulent tax shelter to taxpayers across the country, comprised of a private family foundation and three trusts.

He then taught clients who purchased the tax shelter how to use the foundation and trusts to evade paying federal income taxes on nearly all their income, the government said.

Clients who used the tax shelter only paid taxes on about 2% of their income, prosecutor

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