Top Jeunesse earner Theresa Gregory and her daughter Tera Gore, have plead guilty to multi-million dollar tax fraud.
According to an investigation by the IRS, Gregory has been in the MLM industry “since the 1990s”. With the aid of her daughter, Gregory began committing tax fraud from around January 2008.
By 2012, Gregory (right) was earning just shy of a million dollars annually through her MLM business.
From 2013 to 2018 Gregory’s income broke the million dollar mark, topping out at $4.5 million. Between 2009 to 2017, Gregory earned a total of $17.4 million.
Despite this, IRS records reveal Gregory
failed to voluntarily file personal income tax returns and has paid no personal income taxes for over 20 years.
The IRS has been chasing Gregory since 1993. According to the regulator she’s been “the subject of several IRS civil examination and collection proceedings.”
Rather than pay what she owed though, Gregory conspired with her daughter to commit tax fraud.
Gregory and Gore worked together to conceal Gregory’s income and assets from the IRS.
Gregory and Gore systematically moved assets, including businesses and bank accounts, out of Gregory’s name and into Gore’s name.
Gregory and Gore directed income owed to Gregory to entities and accounts nominally in the control of Gore.
Gregory and Gore took these steps so that IRS records would not link the income or assets to Gregory and did so with the intent to evade the payment and assessment of taxes.
Instead of paying her taxes, Gregory
spent the funds on lavish personal expenses, including home furnishings and home improvements, at high-end retailers such as Louis Vuitton, Jimmy Choo, Saks Fifth Avenue and Nordstrom, on cruises, horse dealers, quarter horse events, custom horse show clothing, gifts for Gore and other family members, mortgage payments on a house in Florida and at various automotive dealerships.
Gore was rewarded with bank cards and bank accounts, which she used to sustain various business interests.
Gregory also authorized the use of funds to pay a private tutor and horse trainers for Gore’s daughter, and for other individuals who provided personal services to Gore.
In one instance of fraud Gregory purchased a $1.1 million Florida home
with a seller-backed mortgage to avoid any requirement to disclose tax returns in making the purchase, and in furtherance of her scheme to evade taxes.
Gregory provided documents to the real estate agent, representing that she had sufficient funds to buy the house.
The documents included a business bank account statement representing that the account contained more than $1.9 million, and articles of incorporation representing that Gregory was an authorized representative of the business and had control over the business’s funds.
In truth, the bank account contained only $3.21, and Gregory was not an authorized representative of the business.
Over the years Gregory and Gore employed “multiple accountants”, each one fired in succession upon identifying “record-keeping deficiencies”.
For their efforts, Gregory and Gore are facing five years in prison and a $250,000 fine. The IRS are seeking to recover $3.75 million in unpaid taxes.
“Theresa Gregory and Tera Gore took extensive measures in an effort to hide their income and to defeat their tax liabilities, but the IRS was not fooled, and this degree of trickery, dishonesty and deceit will be punished,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
The IRS’ criminal case docket shows a sealed plea agreement was entered on July 22nd. Gregory and Gore’s original indictments, filed before July 22nd, remain sealed.
On August 28th, Theresa Gregory and Tera Gore plead guilty to five counts of tax fraud.
As of that same date, the mother and daughter crime duo are out on bond awaiting sentencing.
Dated as recent as April 2020, Jeunesse marketing celebrates Theresa Gregory as a Triple Diamond Director (3rd highest rank).
Whether Gregory she’s still a Jeunesse distributor in light of her criminal record is unclear.
Stay tuned for updates as we continue to track the case.