An Estes Park man pled guilty on Thursday to defrauding the U.S. government of nearly $45 million using an illegal tax shelter.

Timothy McPhee faces a maximum total sentence of up to 30 years in prison for promoting a fraudulent tax shelter made up of a private family foundation and three separate trusts to taxpayers across the country, the U.S. Department of Justice said in a news release Friday. He also pled guilty to tax evasion and wire fraud.

McPhee taught clients who bought the shelter how to use the trusts and foundation to avoid paying federal income taxes on their income from 2018 through 2023, the release says.

His instructions told clients to assign their business income to the trusts, making it seem like the income belonged to them, the release says. Those who followed his a

See Full Page