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Tax attorney placed on interim suspension following conviction for identity theft scheme

A California tax attorney and accountant has been placed on interim suspension following felony convictions arising from a scheme to steal the identities of deceased children to hide his income from the Internal Revenue Service.

Lloyd Taylor [#56157], 71, of San Francisco, was sentenced on Nov. 17, after being convicted of 19 felony charges including aggravated identity theft, making false statements on a passport application, corrupt interference with the Internal Revenue, tax evasion, and making false statements to a federally insured financial institution. He faces possible disbarment but in the meantime has been ordered to comply with rule 9.20 of the California Rules of Court.

According to the U.S. Attorney’s Office in San Diego, Taylor was sentenced to 57 months in prison and must pay more than $2.2 million in restitution to the IRS. He has been in custody since his arrest in San Diego in April 2013.

Taylor stole the identities of at least nine deceased children, many of whom died as far back as the 1950s, and was able to obtain some of the boys’ birth certificates. According to evidence presented at his trial, Taylor then used the stolen information to obtain fraudulent passports and other documents that allowed him to open multiple bank accounts to hide his income and assets. He also used the stolen identities to transfer money between the accounts and to purchase assets such as gold coins, which allowed him to conceal his earnings.

Authorities say Taylor’s scheme also involved creating more than a dozen phony religious institutions and opening 31 bank and investment accounts in their names. He then used the fake churches’ tax-exempt status to fraudulently claim he didn’t owe taxes.

Among the evidence introduced at trial was $1.6 million in gold coins authorities seized from a storage locker where Taylor had hidden it. Despite working for more than 40 years, Taylor is believed to have only filed tax returns seven times. In that time, he failed to report $5 million in income and owed the IRS roughly $1.6 million.