Four Texans indicted in massive $1.5 billion federal tax shelter fraud scheme

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FOX Local
Published October 19, 2026 1:48 PM CDT

MacDonald's Rolls Royce Ghost and yacht. (Source: U.S. Attorney's Office, Northern District of Texas)

The Brief

    • Federal prosecutors charged four Texas residents with promoting a fraudulent trust shelter that hid over $1.5 billion in income and caused $200 million in tax losses.
    • Promoters allegedly charged fees exceeding $100,000 for sham trusts, with one defendant using $2 million in investor funds to buy a Rolls-Royce and yacht.
    • The four defendants face conspiracy, tax evasion, and wire fraud charges carrying sentences ranging from 3 to 20 years per count if convicted.

DALLAS - Four Texas residents have been indicted on federal conspiracy and tax charges for promoting an illegal tax shelter scheme that hid more than $1.5 billion in income and caused an estimated tax loss of over $200 million, federal officials announced Friday.

Four Texans indicted in $1.5B tax scheme

What we know:

A federal grand jury in Dallas returned the indictment on Sept. 22 against Duncan John MacDonald, Sarah Duren, Richard Ronald Cayce, and Thomas Weickgenant, according to U.S. Attorney for the Northern District of Texas Ryan Raybould.

Prosecutors allege the defendants sold clients a fraudulent trust scheme for fees that often exceeded $100,000. They allegedly falsely promised clients they could assign income to sham trusts to defer taxes indefinitely while retaining full control over their assets. Clients were also allegedly advised to backdate trusts and file amended tax returns seeking prior-year refunds.

The backstory:

According to the indictment, Weickgenant, who filed false tax returns for clients, obstructed IRS audits by instructing clients not to speak with agents and advising at least one client to ignore a federal court order enforcing an IRS summons.

Fraudulent promises and lux purchases

Federal authorities also allege that MacDonald and Duren, common-law spouses who operated the tax shelter business, concealed MacDonald’s ownership, lied to federal investigators, and used nominee accounts and trusts to pay personal living expenses and evade taxes on millions of dollars in fees. Cayce, who owned the distributorship licensing the shelter, also failed to report millions in fee income, according to prosecutors.

In addition, MacDonald faces wire fraud charges for allegedly soliciting $2 million from investors under the guise of developing digital trusts for the business. Prosecutors said MacDonald instead spent the money on luxury items, including a Rolls-Royce Ghost and a down payment on a yacht, while under a court injunction prohibiting him from selling unregistered securities.

Facing decades in federal prison

All four defendants face up to five years in prison if convicted on the charge of conspiracy to defraud the United States, alongside additional counts carrying varying prison terms:

  • MacDonald: Charged with tax evasion (up to 5 years per count), wire fraud (up to 20 years per count), transactions involving criminally derived property (up to 10 years per count), and aiding in the preparation of false returns (up to 3 years per count).
  • Duren: Charged with tax evasion (up to 5 years per count).
  • Cayce: Charged with filing a false return and aiding in false returns (up to 3 years per count).
  • Weickgenant: Charged with corrupt interference with the IRS and aiding in false returns (up to 3 years per count).

The case was investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Eric B. Chen along with prosecutors from the Justice Department's National Fraud Enforcement Division. An indictment is an accusation, and all defendants are presumed innocent until proven guilty in court.

The Source: Information in this article is from the U.S. Attorney's Office, Northern District of Texas.

TexasCrime and Public Safety