SEATTLE — Federal investigators say a 57-year-old man from Paradise Valley, Arizona stole more than $50 million from the U.S. Treasury.
On Monday in Seattle, Charles St. George Kirkland was sentenced to nine years in prison for a tax fraud scheme related to solar power. Kirkland pleaded guilty back in January to three counts of aiding or assisting the filing of fraudulent tax documents.
"He did this for thousands of people all over the country, and many of them were here in Washington state,” said Assistant U.S. Attorney Seth Wilkinson.
According to the U.S. Attorney's Office, the fraud happened in several steps.
"He filed tax returns saying that he has lost millions and millions of dollars on solar,” said Wilkinson.
For example, investigators say Kirkland claimed in 2013 that his business, Clean Energy Services, incurred more than $41 million in losses due to depreciation in its solar equipment.
Investigators say he contracted with thousands of taxpayers to transfer the fabricated tax credits to them.
"He created this program for eight years where taxpayers then use those losses to claim refunds on their own tax returns,” said Wilkinson.
After receiving the fraudulent refunds, taxpayers paid 90% of the proceeds to Kirkland, according to a news release from the U.S. Attorney's Office.
"There are tax credits available to people who legitimately install solar, and this was an abusive scheme that was promoting those credits without actually installing those solar panels,” said Carrie Nordyke, assistant special agent in charge with IRS Criminal Investigation.
"The IRS was certainly duped. there's no reason to think that any of these taxpayers who participated in this program knew that there was no solar equipment,” said Wilkinson.
“This is one of the largest tax loss cases we have had in many, many years,” said U.S. Attorney Nick Brown with the Western District of Washington.
The losses add up to more than $50 million.
“$46 million of that went to Mr. Kirkland,” said Wilkinson.
“Two days after he agreed with the government to plead guilty. He and his wife filed a divorce petition,” said Wilkinson. “The type of assets the government could seek restitution on were transferred to the wife and included 100 pieces of real estate, all six of their cars, and their 10,000 square foot house.”
The government will continue to go after assets to satisfy the restitution obligation, according to the U.S. Attorney's Office.
Kirkland was quiet as he left the courthouse. He will soon begin a nine-year prison sentence, and he has been ordered to pay $51 million in restitution. His attorney said they had no comment.