Missoula accountant admits to fraud in marijuana tax scheme
(Missoula Current) A Missoula accountant accused of defrauding clients by using their cash payments intended for income taxes for his own personal expenses admitted to fraud and obstruction charges.
The defendant, William Arthur Clawson, 54, appeared for an arraignment last week in Missoula District Court and pleaded guilty to wire fraud and to endeavor to obstruct and impede the administration of the internal revenue laws.
Clawson faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release on the wire fraud charge and a maximum of five years in prison, a $250,000 fine and three years of supervised release on the corrupt endeavor charge.
Sentencing was set for June 24. Clawson was released pending further proceedings and a plea agreement filed in the case calls on Clawson to pay full restitution to the victims of no less than $1,158,811.40.
The government alleged that from 2016 to 2021, Clawson used his businesses, Quantum Business Solutions and Endeavor Financial Insights, to defraud clients. Clawson offered accounting and tax preparation services to clients in Montana, Washington and Oklahoma, who were engaged in the cash-intensive medical marijuana industry.
Clawson promised to assess the taxes owned by his clients and receive cash payments from them that he would use to pay his fees and the taxes they owed. Instead, Clawson paid only a small portion of the taxes his clients owed and used the remainder of the money on his personal expenses and unrelated debts.
Through Clawson’s actions, his clients unknowingly fell behind in paying the taxes they owed.
The government further alleged that between 2019 and 2020, one of Clawson’s clients came under IRS scrutiny because of unpaid taxes. An IRS revenue officer contacted the company as part of efforts to collect taxes owed. The company called Clawson, who was serving as its accountant.
Clawson instructed the company not to communicate with the IRS officer and said he would take care of the reported issue. Clawson falsely told the IRS officer that the company had cash flow issues that were making it difficult for the company to pay its taxes.
Clawson acted corruptly by making other false statements to the IRS officer on the company’s behalf that Clawson knew would impede the government’s tax collection efforts. Clawson did this to conceal his misappropriation of funds the company gave him to pay its taxes.