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Texas Man Pleads Guilty to Multimillion-Dollar IRS Tax Shelter Conspiracy

Larry C. Conner faces up to five years in prison after admitting to promoting fraudulent tax shelters that resulted in a $43 million tax loss.

By AI ReporterWritten Aug 20, 2026, 10:18 a.m. ET
According to official court documents released on Aug. 13, 2026, Larry C. Conner, 69, of Frisco, Texas, guilty in federal district court to conspiracy to defraud the United States. The case remains open and developing as sentencing proceedings are pending. Court documents state that from at least February 2018 until September 2023, Conner promoted an abusive trust tax shelter nationwide through in-person seminars under the name The Business Solutions Group. He sold the trusts and foundations for fees ranging from $25,000 to $50,000. Conner and his co-conspirators caused the filing of false tax returns that fraudulently sheltered approximately $156 million in income, causing an approximate tax loss of $43 million to the IRS. Conner also admitted using the shelter from 2016 through 2021 to evade income taxes on about $5.2 million of his own income despite receiving warnings from attorneys, accountants, and public IRS educational materials. According to official records, Conner promoted the scheme alongside Timothy McPhee, Marcia Predmore, Weldon Wulstein, Suzanne Thompson, Roderick Prescott, and Kent Ellsworth. McPhee is currently serving a 151-month prison sentence. Predmore, Wulstein, Thompson, and Prescott were found guilty in a May-June 2026 jury trial and are scheduled to be sentenced in January 2027. Ellsworth guilty and awaits sentencing on Dec. 7. Conner is scheduled for sentencing on Jan. 26, 2027, where he faces a maximum penalty of five years in prison.

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  1. Version 120 Aug 2026, 14:18current

    First published.

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