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Arizona man pleads guilty for defrauding IRS of $17 million through ‘tax shelters’

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Arizona man pleads guilty for defrauding IRS of  million through ‘tax shelters’


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An Arizona man pleaded guilty Friday to defrauding the Internal Revenue Service of $17 million between 2017 and 2023.

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The U.S. Department of Justice announced on Monday that Kent Ellsworth pleaded guilty to two counts of assisting in the preparation of false tax returns, which were used to provide an illegal tax shelter for his clients.

Ellsworth Stauffer, the operator of a formerly licensed professional corporation, concealed nearly $60 million from the IRS, causing an estimated loss of $17 million in taxes that Ellsworth’s clients should have paid, according to the DOJ in a news release.

According to the DOJ, Ellsworth promoted and sold fraudulent tax shelters for about 60 clients nationwide, creating more than 500 false tax returns.

Ellsworth carried out his scheme by reporting his clients’ income to fraudulent trusts and foundations set up to act as bank accounts that held the funds free of being taxed.

The DOJ said that the majority of Ellsworth’s clients were successful business owners who falsely donated the funds to the tax shelters under the disguise that the income was being given to client’s family members, allowing for the bypass of regular tax laws.

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The DOJ added that Ellsworth also charged money by charging for preparing the returns.

The DOJ stated that Ellsworth had been taught how to perform the fraudulent returns but did not specify who taught him.

Ellsworth was scheduled to be sentenced on Aug. 14 by a federal court and, if convicted, could face a six-year prison sentence, a fine of $250,00, reimbursement of prosecution expenses, and undergo supervised release.

The DOJ did not immediately provide more information on Ellsworth and his crimes.



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Conservative think tank challenges Arizona AG on rental price-fixing records

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Conservative think tank challenges Arizona AG on rental price-fixing records


PHOENIX (AZFamily) — A conservative-leaning think tank is suing Arizona Attorney General Kris Mayes over her office’s refusal to fully disclose records related to allegations of rental price-fixing involving major landlords and a property management software company.

The Goldwater Institute filed a public records lawsuit against Mayes, demanding she reveal how many people have filed complaints related to the allegations.

In a news release, the think tank said Mayes has refused to state how many Arizonans claimed the alleged conspiracy actually harmed them.

In February 2024, the AG’s office sued nine landlords, including Avenue5, Greystar, RPM Living, and Weider. State officials also named RealPage, a property management software company, in the lawsuit, alleging it colluded with others to inflate rental prices across metro Phoenix.

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The Goldwater Institute said it had requested full complaint records from Mayes’ office but reportedly only received a numerical count of complaints, without the underlying records.

“I firmly believe in vindicating Arizona’s Public Records Law, which exists to ensure that government remains accountable to the people it serves,” said Michael Bloom, an attorney for the American Freedom Network, which is representing the Goldwater Institute. “Transparency is the cornerstone of public trust.”

Goldwater officials said the AG’s office claimed the information was confidential, but they argue it is not protected under public records law.

The think tank also noted that Mayes’ lawsuit mirrors similar cases filed by other Democratic attorneys general, and partnered with a private law firm to pursue the case, similar to approaches taken in those other states.

Last year, the Justice Department filed an antitrust lawsuit against RealPage, accusing it of an illegal scheme that allowed landlords to coordinate and hike up rent prices.

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Arizona presses for federal help as new report reveals $33.5M loss in floods

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Arizona presses for federal help as new report reveals .5M loss in floods


GLOBE, AZ (AZFamily) — Arizona lawmakers from both sides of the aisle have sent a letter to President Donald Trump, urging him to swiftly approve Gov. Katie Hobbs’ request for a major disaster declaration for Gila and Mohave counties.

The move brings hope to communities like Globe, which are grappling with the aftermath of destructive and deadly floods in September and October.

Globe Mayor Al Gameros expressed his appreciation for the bipartisan effort.

“It’s amazing that letter was written in this shorter period of time,” Gameros said. “I’m glad that it’s a bipartisan letter. I’m glad that it’s urging the president to immediately sign this and not delay it, because it is important to our rural community.”

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Included in the correspondence is a newly released damage assessment compiled by FEMA, the state, and local leaders.

The assessment of the two counties details significant destruction, including that 312 homes were damaged, with 64 destroyed, 89 suffering major damage, and 159 receiving minor damage. The total estimated loss in dollars is $33,579,081.

Gameros noted the challenges communities face in securing aid.

“We (other mayors) tried to learn, at the same time, learning what the complexity of filing for reimbursement,” he said.

He explained that while the state will reimburse towns up to 75% of costs, federal approval could mean up to 90% is paid back.

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Now, Gameros is anxiously awaiting the Trump administration’s decision, hoping that if the disaster declaration is approved, the process won’t be slow.

“That would really put a hurt in our community as far as us being able to move forward,” he said.

In the meantime, he said they have restaurants open in Globe and urges Arizonans to pay them a visit.

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Kansas football bowl projections following Big 12 Conference loss on road against Arizona

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Kansas football bowl projections following Big 12 Conference loss on road against Arizona


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LAWRENCE — Kansas football lost 24-20 on the road this past weekend against Arizona.

The Big 12 Conference defeat saw the Jayhawks (5-5, 3-4 in Big 12) come up short on what could have been the day it became bowl eligible this season. Coach Lance Leipold and company gave up a late lead against the Wildcats and suffered a disappointing defeat. Bowl eligibility is still possible, as KU navigates an open week, but with the loss, reaching that point has become all the more challenging.

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Before Kansas’ season resumes Nov. 22 on the road against Iowa State, here are some bowl projections for the Jayhawks:

This projection places Kansas in the SERVPRO First Responder Bowl, scheduled for December 26 in Dallas, Texas. It would put the Jayhawks up against Boise State (6-3, 4-1 in Mountain West Conference). Boise State most recently lost against Fresno State, but is still in contention to play for its conference title.

These projections place Kansas in the Radiance Technologies Independence Bowl, scheduled for December 30 in Shreveport, Louisiana. One has KU facing Kennesaw State (7-2, 5-0 in Conference USA), while the other has KU facing Louisiana Tech (5-4, 3-3 in Conference USA). Kennesaw State beat Louisiana Tech earlier this season.

This projection places Kansas in the Scooter’s Coffee Frisco Bowl, which is set for Dec. 23 in Frisco, Texas. It would put the Jayhawks up against California (6-4, 3-3 in Atlantic Coast Conference). California is coming off of a win against now-No. 21 Louisville.

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Jordan Guskey covers University of Kansas Athletics at The Topeka Capital-Journal. He was the 2022 National Sports Media Association’s sportswriter of the year for the state of Kansas. Contact him at jmguskey@gannett.com or on Twitter at @JordanGuskey.



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