A Good Way to Get to ClubFed: Finance Porn Distribution and Don’t Report the Income

If you want to paint a recipe for heading to ClubFed, Carolynne Tilga of Santa Fe, New Mexico couldn’t do it any better. First, begin by investing in a business that’s likely illegal: Distributing pornography over the Internet. Yes, the website she invested in was in Canada but the customers were in the United States.

Next, add not paying taxes on the income. As I’ve said numerous times, illegal income is just as taxable as legal income. Then add some conspicuous consumption: a $1.85 million house in Kilauea, a $1.38 million home in Las Campanas, and other property in Taos, Aspen, and Telluride.

She pleaded guilty to conspiracy, six counts of tax evasion, and filing false tax returns. She received eight months at ClubFed; her husband, who had pleaded guilty to one count of conspiracy, got probation. They must make restitution of $1.7 million to the IRS. If you’re looking for a nice house in Kilauea, I think I know of one that may soon be on the market.

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