Millionaire couple convicted of tax fraud

KANSAS CITY, Mo. -- A couple with a reported income of more than $1 million have been convicted of tax fraud after taking advantage of benefits meant for working families.

James E. Aldridge Jr., 51, and his wife, Shirley L. Aldridge, 49, were convicted Friday of five counts each of aiding and abetting the filing of false tax returns between 2000 and 2004, the U.S. attorney's office said.

The Lee's Summit couple reportedly earned more than $1.6 million, which they hid from the Internal Revenue Service through a personal charitable foundation and a series of trusts, according to evidence presented at trial.

The couple took advantage of the earned income tax credit, a benefit passed by Congress to encourage low-income families to work, U.S. Attorney John F. Wood said. Over a five-year period, the couple evaded $654,257 in federal income taxes.

"Is it fair for people who, by their own admission, have amassed great wealth and are independently wealthy to claim income of $5,000 on their tax returns?" said assistant U.S. Attorney William Meiners.

The couple co-owned Concept Marketing International, which sold American Silver Eagle coins through about 5,000 agents nationwide. James Aldridge also conducted several seminars where he advised coin purchasers how to avoid taxation by establishing a home-based business.

For $15,000, coin purchasers could buy a trust package that Aldridge claimed would reduce their taxes by 97 percent or more, and allow them to deduct 90 percent of their personal living expenses, including groceries, clothing and vacations.

The couple created a number of trusts to evade taxation, prosecutors said. Most of their income was funneled through the trusts and used for personal purchases, including a home, personal watercraft and automobiles.

A sentencing hearing has not been scheduled. The two face up to 15 years in federal prison and a fine of up to $500,000.