July 31, 2021
Scam/Fraud

$44 Million Ponzi Scheme Loss Claim Denied By Tax Court

July 20, 2021, 8:42 PM

Roughly $44 million in losses sustained in business losses related to a Ponzi scheme don’t qualify for a theft loss deduction because the company seeking them failed to justify its claim, the U.S. Tax Court ruled.

Frank Vennes and Kimberly Vennes sought $43.8 million in in passthrough theft loss deductions for tax year 2008 related to several entities. The theft loss claims tie to a sweeping Ponzi scheme orchestrated by Minnesota businessman and former owner of Polaroid and Sun Country Airlines Thomas J. Petters, who was convicted in 2009 of carrying out the $3.7 billion fraud.

Read full article here: news.bloombergtax.com