Bradenton Man Sentenced for Tax Fraud

Joseph Nelson Sweet of Bradenton was sentenced to 10 years in prison earlier this month for his involvement in a Tampa-based tax avoidance scheme. As a result of the advice that Sweet sold to 1,300 people nationwide, the government believes it lost at least $3.8 million in taxes.

Back in March, a jury sitting in the Tampa federal court convicted Sweet of conspiring to defraud the Internal Revenue Service, corruptly interfering with the IRS and contempt of court.

For almost 15 years, Sweet marketed so-called “tax-defier” books and strategies. In 1999, Jack Lee Malone of Pinellas County joined Sweet in these anti-tax endeavors.

They claimed their materials would help people legally avoid paying federal income taxes. Their customers were instructed to put income and assets in “sham” trusts called Unincorporated Business Trust Organizations (UBTOs), sold by businesses owned by Sweet and Malone. They also contended that income generally is not taxable and filing an income tax return is strictly voluntary, according to prosecutors.

Authorities also claim that the two men told clients to send deceptive or obstructive paperwork to the IRS and to hide their income and assets.

Before his sentencing, Sweet told the court, “I honestly believe that I had discovered that the (tax) system was based on systemic and institutional fraud.”  Assistant U.S. Attorney Cherie L. Krigsman argued Sweet was “an inveterate con man” and “someone who thought he was too smart and too good to obey the law.”

In June, Malone was sentenced to five years in prison.