Former IRS Agent Sentenced to Prison for Securities Fraud Scam

A former agent for the IRS has been sentenced to 33 months in prison for his role in a securities fraud scam that stole more than $8 million from unsuspecting victims.

According to Business Week, 55-year-old George Tannous received his sentence nearly four years after initially pleading guilty to one count of conspiracy and one count of subscription to a false tax return.

Tannous’ securities fraud scam involved an internet auction website he owned, Bidbay.com, that he misled investors to believe was about to be acquired by eBay. However, not only were there never plans for the company to be acquired by the online auction giant, but Tannous also did not inform investors that Bidbay - and similar related companies – were in fact paying sales commissions of up to 50 percent to telemarketers who solicited investors.

Furthermore, one of the people who assisted Tannous with Bidbay was a felon awaiting sentencing in a previous fraud case. Tannous failed to inform investors of this.

Tannous was also dishonest with his tax filings. He failed to report $3 million he received in investor funds to the IRS in 2001. In total, he received approximately $8.8 million through his deceptive practices.

In addition to his jail time, Tannous will also have to pay back the investors he defrauded.

If you or a loved one has fallen victim to investment fraud, contact Sokolove Law today to learn more about pursuing a securities fraud lawsuit.