Puerto Rico chiropractor pleads guilty in false tax return case tied to tax shelter

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Puerto Rico chiropractor tax fraud case

Highlights

Bernsen pleaded guilty to willfully filing a false tax return related to an abusive trust shelter involving his Midwest chiropractic business and a fraudulent foundation.
Prosecutors allege the scheme allowed Bernsen to avoid nearly $1.3 million in taxes from 2019 to 2021 by disguising personal expenses as deductible administrative expenses.
Bernsen faces sentencing on October 2 with a maximum of three years in prison, as federal authorities intensify enforcement against tax shelter abuse and false filings.

Guilty plea and tax shelter structure

As reported by the U.S. Department of Justice, Bernsen pleads guilty to one count of willfully filing a false tax return in connection with a tax shelter built around abusive trusts and a fraudulent charitable foundation.

Court documents and statements made in court say Bernsen, formerly of Westmont, Illinois, was the former CEO and co-founder of a company that managed more than 50 chiropractic clinics across the Midwest. Prosecutors say the shelter was set up to make it appear that he had permanently transferred ownership interests in several business entities, including his chiropractic business, to trusts and a charitable foundation.

Authorities say Bernsen in fact kept control of the businesses and continued to benefit from their income. They also say he used the trusts to pay for personal residences, credit card bills, a luxury vacation and a boat, while filing false trust tax returns that wrongly treated those purchases as deductible administrative expenses.

Sentencing timeline and enforcement impact

Prosecutors say the conduct allowed Bernsen to avoid paying nearly $1.3 million in taxes between 2019 and 2021. He is scheduled to be sentenced on October 2 and faces a maximum penalty of three years in prison, with the federal judge set to determine the final sentence after considering U.S. Sentencing Guidelines and other statutory factors.

The announcement is made by 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. IRS Criminal Investigation is investigating the case, and trial attorneys Boris Bourget and Mahana K. Weidler of the Criminal Division's Tax Section are prosecuting it.

Our earlier article on the IRS 2025 Data Book outlined how the agency handled return processing, revenue collection, and taxpayer service during fiscal year 2025, while moving toward more digital-first operations. We also noted the rollout of new Working Families Tax Cuts Act benefits and the IRS focus on using upgraded online tools and analytics to better identify high-risk non-compliance and tax fraud.

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