ST. GEORGE — A St. George financial adviser who pleaded guilty to fraud and tax evasion charges has been sentenced to 72 months in prison and ordered to pay $12 million in restitution.
Henry Brock, 65, was sentenced Monday in U.S. District Court for the District of Utah in St. George.
Brock pleaded guilty in April to tax evasion, securities fraud and wire fraud, according to a statement by the U.S. Department of Justice.
Brock founded a financial services company called Mutual Benefit International Group in 2009, serving as president until 2017. He marketed and sold a fraudulent tax scheme called “IRA Exit Strategy” to potential investors, the statement reads. He promised investors that he could provide a way for them to avoid paying taxes on IRA withdrawals, which would otherwise be subject to Internal Revenue Service penalties and taxes.
To implement his scheme, Brock had his business issue tax forms to his clients falsely representing that they were investors in his business who incurred losses. That served to offset the clients’ tax liabilities. As a result, Brock caused clients to file fraudulent income tax returns claiming a approximately $3.8 million in bogus business losses and resulting in a tax loss of more than $1.1 million.
During that period, Brock fraudulently raised more than $10.8 million in investments by making false representations to investors regarding the IRA Exit Strategy, the financial condition of his company and other matters, according to the statement.
On at least one occasion, Brock also transferred $196,323 of a client’s investment funds and used the money for his own personal and business expenses.
U.S. District Court Judge Ted Stewart also ordered Brock to serve three years of supervised release and to pay restitution in the amount of $12 million.
Special agents of IRS Criminal Investigation and the Utah Division of Securities conducted the investigation, and Assistant U.S. Attorney Trina Higgins and Trial Attorney Matthew Hoffman of the Tax Division, prosecuted the case.
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Never trusted anyone whos job it is , is to tell you what to do with your money. Just me.
Everyone that invested with this guy broke the law also and should be charged!
I guess he will have to move his office to Nigeria when he gets out @ 71 years old. I believe he will have to do all 72 months locked-up being a Federal prison. Greed takes you down that road……now you pay with your loss of freedom.