Solving Tax Complexities in a Multimillion-Dollar Ponzi Scheme Case
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July 07, 2026
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A long-term real estate investment and property firm based in the United States faced bankruptcy in connection to an over $100M Ponzi scheme. FTI Consulting was appointed as a real estate and tax advisor to the bankruptcy estate. However, given the tax and reporting implications of the fraud, our experts were further engaged to assist in navigating the scheme’s tax implications to the estate and defrauded investors, reach a settlement with U.S. federal and state tax authorities and manage the tax reporting complexities of the numerous debtor entities.
Our Impact:
- The client was equipped with a comprehensive approach to address missing and fraudulent tax returns, tax reporting complexities with U.S. federal and state tax authorities and tax implications to defrauded investors.
- Our approach created certainty around the proposed plan of liquidation and minimized the negative tax implications to the defrauded investors.
- Potentially millions of dollars in tax preparation professional fees, back-taxes and penalties and interest owed to taxing authorities were saved.
Our Role:
- As certain records were destroyed or went missing, and tax laws do not adequately address such a scenario, FTI Consulting’s experts aided attorneys and advisors in navigating the tax landscape of the transition.
- Our experts advised the bankruptcy estate on the tax implications of the Ponzi scheme to the defrauded investors, the planned liquidation and the reporting obligations of the client.
- FTI Consulting developed a streamlined and comprehensive position to address the potential claims of the taxing jurisdictions to significantly simplify negotiations with the IRS and provide the debtors and their advisors with a clear path forward regarding federal and state taxes.
Published
July 07, 2026
Key Contacts
Senior Managing Director, Co-Leader of U.S. Tax Advisory
Managing Director