Three men connected to a Utah-based mare leasing program have pleaded guilty to conspiring to defraud the federal government, a crime that allegedly caused the loss of more than $200 million in taxes.
Prosecutors say the operation, which was called ClassicStar, was promoted as a tax shelter and a way for wealthy people to invest in thoroughbred breeding. Deductions taken under the program were fraudulent because, among other reasons, fraudulent loans were used to finance investors' participation, according to charges filed against the defendants.
Pleading guilty on Monday were S. David Plummer, a Texas resident who created the mare leasing program; his son, Spencer Plummer, a Utah resident who helped run it; and Terry Green, a certified public accountant in Utah who assisted investors in preparing income tax returns. They entered their pleas in U.S. District Court in Portland, Ore.
No sentencing date has been set.
Numerous civil lawsuits have been filed around the nation against ClassicStar and affiliated companies by investors who claim they were defrauded.
