Puerto Rican Chiropractor Pleads Guilty to $1.3M Tax Shelter Fraud in Illinois

Stuart Bernsen, former CEO of a Midwest chiropractic network, admitted to hiding income through illegal trusts and a sham charity, avoiding $1.3M in taxes.

Puerto Rican Chiropractor Admits to Hiding $1.3 Million in Taxes via Fake Trusts

DOJ Justice News reports that Stuart Bernsen, a Puerto Rican chiropractor and former CEO of a company overseeing more than 50 chiropractic clinics across the Midwest, pleaded guilty to filing a false tax return connected to an illegal tax shelter scheme.

According to court documents, Bernsen — formerly of Westmont, Illinois — paid to set up a tax shelter designed to conceal his income through a series of abusive trusts and a fraudulent charitable foundation. Between 2019 and 2021, the arrangement allowed him to avoid paying nearly $1.3 million in federal taxes.

The scheme was structured to give the appearance that Bernsen had permanently transferred ownership of his business interests — including his chiropractic operation — to the trusts and foundation. In practice, he retained full control of those entities and continued drawing income from them. The trusts were then used to fund personal expenses: private residences, credit card payments, a luxury vacation, and a boat. Bernsen additionally filed false tax returns for the trusts, falsely claiming those personal purchases as deductible expenses tied to trust administration.

Bernsen entered a guilty plea to one count of willfully filing a false tax return. He is scheduled to be sentenced on October 2 and faces a maximum of three years in prison. A federal district court judge will determine the final sentence in accordance with U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Colin McDonald of the Justice Department's National Fraud Enforcement Division and U.S. Attorney Andrew S. Boutros for the Northern District of Illinois announced the case. IRS Criminal Investigation is handling the investigation. Trial Attorneys Boris Bourget and Mahana K. Weidler of the Criminal Division's Tax Section are prosecuting.

The National Fraud Enforcement Division was established on April 7 to investigate and prosecute fraud against the American public. Its work forms part of President Trump's Task Force to Eliminate Fraud, chaired by Vice President J.D. Vance, aimed at reducing fraud, waste, and abuse in federal benefit programs.

Source: DOJ Justice News