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NC man convicted of tax, fraud charges

His scheme lost his victims over $800,000 and a separate tax loss to the United States of over $400,000.
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NEWPORT NEWS, Va. — A federal jury convicted a North Carolina man on Tuesday on 35 charges of conspiracy, tax fraud related to a fraudulent tax shelter, mail and wire fraud, and money laundering.

Court documents and evidence discussed during 63-year-old Byron Hale Delavan's tried claimed he had a tax and investment fraud scheme from 2011 until 2016. His scheme resulted in the losses to victims of over $800,000 and a separate tax loss to the United States of over $400,000.

Delavan offered a fraudulent tax program to people in the Tidewater area where they paid him between $10,000 and $12,500 in order to obtain fraudulent losses to offset income on their tax returns. 

In doing so, Delavan purported to deduct business bad debts from non-operational entities he controlled, passing through these losses to client returns as if the clients were actually involved in these entities. 

Delavan also solicited business loans and investments from some of the same and additional clients that he falsely represented would be used for business purposes. Contrary to this, Delavan used those funds for personal use, including the repayment of prior clients and personal expenses, such as private school tuition. 

Finally, Delavan purported to sell gold to certain clients but made false representations related to the value or existence of the gold or the purpose of the funds obtained.

Delavan is scheduled to be sentenced on July 9.

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