SAN ANTONIO – A San Antonio man was sentenced today to 18 months in prison for a fraud scheme and tax evasion.
According to court documents, from 2007 to 2016, Edward C. Wagner, 60, was the owner and operator of the companies Pharmacogenetics, EcoChem, Leaf 23 and Nutrecs. Wagner promoted and sought investments in these companies from people in Nevada, Texas and Florida. However, Wagner never took steps to get any of the ventures off the ground and none of the companies ever did any amount of significant business. Wagner raised $645,743 from investors and used the money for his own personal use.
Also, from 2007 through 2010, Wagner accrued a total of $744,186 in unpaid taxes and penalties based on taxable income of $1,410,112. Wagner intentionally disguised his actual income by hiding his sources, using nominee financial institution accounts, dealing extensively in cash and cashier’s checks, and creating a false loan document. Wagner also failed to file income tax returns for calendar years 2013 through 2016.
In addition to the prison term, Wagner was ordered to pay $76,733 in restitution for the fraud victims and $1,088,258.03 in restitution to the Internal Revenue Service. On October 12, 2021, Wagner pleaded guilty to one count of Wire Fraud and one count of Tax Evasion.
“Our office remains firmly committed to identifying and prosecuting those who seek to enrich themselves through fraud, whether through false representations to deprive others of money, evading their fair share of taxes, or, as in this case, both,” said U.S. Attorney Ashley C. Hoff.
“Fraudsters, such as Edward Carl Wagner, who create elaborate investment schemes that have no purpose other than to mislead and deceive others while also trying to hide their ill-gotten gains from the Internal Revenue Service, run the very high risk of prosecution. No matter what the source of income, even illegal income is taxable!” said Ramsey E. Covington, Special Agent-In-Charge of the Houston Field Office of IRS Criminal Investigation (IRS-CI). “Today’s sentencing is a reminder to all would be fraud scheme and/or tax evading criminals that you will get caught and you will go to jail.”
The IRS-CI investigated the case.
Assistant U.S. Attorney William R. Harris prosecuted the case.
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