Fake trust lands 3 in hot water

January 28, 2008 6:01:45 PM PST
Three people have been convicted and one acquitted in a trial over what prosecutors say was a plot to use phony trusts to defraud the IRS of about $10 million.

The defendants were involved with Commonwealth Trust Co., which prosecutors say persuaded investors to place income and assets into trusts to dodge income taxes.

A federal jury in Philadelphia convicted company co-founder John Michael Crim, John Brownlee, and Constance Taylor on Monday. The charge is conspiring to defraud and corruptly interfering with the Internal Revenue Service. Paul Crim, the son of defendant John Crim, was acquitted.

The three people convicted are ordered held without bail until they're sentenced in May.