Overview

• Timothy McPhee admitted on August 8 to conspiring to defraud the United States, tax evasion and wire fraud in federal court.
• Prosecutors say he created an illegal tax shelter using a family foundation and multiple trusts to help clients evade roughly $45 million in federal income taxes nationwide.
• McPhee personally used the scheme from 2016 through 2021 to conceal over $5 million in income, avoiding about $1.8 million in taxes.
• From January 2023 to May 2024, he ran the ROI Cash Flow Fund, falsely promising 3% monthly returns and diverting more than $8 million from investors.
• He faces up to five years each for conspiracy and tax evasion and up to 20 years for wire fraud at his October 23 sentencing.