A jury in Portland, Oregon on Monday found a former registered broker guilty of evading $2.5 million in income taxes by hiding his income in various bank accounts and submitting false financial statements to the Internal Revenue Service, according to court documents.
After a two-week trial, the jury convicted James Millegan, 65, of McMinnville, Oregon, of one count of tax evasion.
"We were disappointed by the jury's verdict and intend to appeal," Lisa Hay, one of the attorneys representing Millegan, told ThinkAdvisor by email on Tuesday.
Instead of paying the IRS, Millegan used the money to pay for an extravagant lifestyle that included luxury cars, according to the Justice Department. Tax evasion is punishable by up to five years in federal prison, it said in a news release.
Prolific Spending
The ex-broker was described as a prolific spender by personal assistants hired to pay his bills, according to the Justice Department.
Millegan used the proceeds of his tax evasion to fund a life of luxury that included a $4.5 million house in Portland, a $1.3 million home on the Oregon coast, Rolls-Royce and Bentley cars for everyday use, equestrian expenses including stabling and lessons, and an attempt to establish a world-class equestrian competition center and resort near Sheridan, Oregon, according to the Justice Department.
He also bought a classic 1938 Rolls-Royce touring car, paid $800,000 to restore it, and showed it at premier car shows in the U.S. and Europe.
