Broward lawyer used charity tax scam to lure rich clients, the IRS says. It backfired

A South Florida attorney helped save his rich clients over $35 million by orchestrating a nationwide scheme that utilized phony donations made to several charities — all of which investigators say either directly or indirectly had ties to him — as a vehicle to securing massive tax deductions.

From 2013 to 2021, Michael L. Meyer is accused of earning more than $10 million after coordinating the illegal tax shelter plan then selling it to prospective buyers, according to a 34-count federal indictment unsealed Friday.

The Broward County resident, who moved there from Indiana in 2015, took advantage of the illegally-obtained profits by purchasing a multi-million-dollar estate in addition a luxury vehicle collection that featured a fleet of Lamborghinis, Rolls Royces, Mercedes Benzes, a Bentley and a Ferrari, the indictment states.

Meyer’s attorney, Jeffrey Adam Neiman of the law firm Marcus Neiman & Rashbaum in Fort Lauderdale, didn’t immediately respond to a request for comment. Neither Meyer’s age nor his date of birth has been released but federal court records show he was born in 1965, making him around 58-years-old. On Wednesday, court records show Meyer made a $250,000 bond to be released from jail — but not before he was ordered to give up his passport and remain in South Florida.

How did he pull off the alleged tax scheme?

Investigators say Meyer and his trainees marketed the “Ultimate Tax Plan” as a means for high-income clients to claim charitable contribution tax deductions by purportedly donating cash, securities or real estate to several charities based in Indiana and Nevada without giving up control over their assets. The charities named in the indictment are National Endowment Association, Grace Heritage Corporation, Indiana Endowment Fund, lndiana Endowment Foundation and Compassion Beyond Borders.

“This was false and illegal,” the U.S. Department of Justice argued in the indictment. “To claim a charitable contribution tax deduction, the taxpayer must completely relinquish dominion and control over the donated property and may not retain use of the donated property or expect a substantial benefit in return.”

His two listed co-conspirators, Rao Garuda, the president and CEO of Associated Concepts Agency, a wealth-management company in Ohio, Cullen Fischel, the former chief financial officer of the agency, have pleaded guilty to their role in the scam that provided a tax shelter for rich clients, according to a Justice Department press release and cleveland.com.

According to the indictment, Meyer directed his clients to use the supposedly donated assets for personal gain by taking tax-free loans. After three years, they could buy back their goods at a “significantly discounted price.” The indictment doesn’t name them.

As part of the “Ultimate Tax Plan,” the indictment reveals Meyer:

▪ Created boilerplate transactions documents to use with clients.

▪ Prepared appraisals of the purported donations.

▪ Filled and signed lRS appraisal forms for clients.

▪ Assisted in the preparation of federal and state tax returns.

▪ Controlled the charities that received the purported donations.

▪ Represented clients who were audited by the lRS and provided false documents to the agency.

Meyers sued by the DOJ

In 2018, the Justice Department sued Meyer, the agency said, to stop him from promoting the nationwide charitable giving tax scheme.

“The IRS has identified specific transactions that, through 2014, cost the United States Treasury more than $35 million in lost tax revenue,” the lawsuit stated.

A year later, the U.S. District Court for the Southern District of Florida barred Meyer from organizing, promoting, marketing or selling the “Ultimate Tax Plan.” And in 2021, the Indiana Supreme Court accepted his resignation to the Indiana State Bar Association.

The indictment states that only a small fraction of charitable tax deductions were donated to legitimate charities.

Meyer is charged with conspiracy to defraud the United States, mail and wire fraud conspiracy, aiding in the preparation of false tax returns, trying to impede the internal revenue laws, obstructing and conspiracy to obstruct an official proceeding. If convicted, he could spend over 25 years in prison, according to the Department of Justice.

His first formal appearance in court is set for Aug. 4.