Houston, Texas - A federal grand jury in Houston, Texas, returned an indictment on March 17, 2021, charging Michael Andrew McCann with conspiring to defraud the United States, endeavoring to obstruct the IRS, failing to file tax returns, and making false bankruptcy declarations.

The grand jury also returned an indictment charging Toni Gale Engeling with conspiring to defraud the United States and obstructing the grand jury. The defendants made their initial court appearance today before U.S. Magistrate Judge Sam Sheldon of the U.S. District Court for the Southern District of Texas.

According to the indictment, McCann is a dentist in Brazoria and Engeling is a bookkeeper and McCann’s sister. From 2010 to 2015, McCann and Engeling allegedly employed a variety of methods to prevent the IRS from assessing and collecting McCann’s individual income taxes, including using nominee entities, commingling personal and business finances, and lying to the IRS. The indictment further alleges that McCann corruptly endeavored to obstruct IRS collection efforts as early as 2002; that McCann made false declarations on schedules he filed in connection with multiple bankruptcy cases; and that McCann willfully failed to file tax returns for the years 2014 through 2018. The indictment further alleges that in September 2019, Engeling obstructed the grand jury’s investigation into McCann by making false and misleading statements.

If convicted, McCann faces a maximum sentence of five years in prison for the conspiracy charge; five years in prison for each charge of bankruptcy fraud; three years in prison for the IRS obstruction charge; and one year for each charge of willful failure to file. If convicted, Engeling faces a maximum sentence of five years in prison for the conspiracy charge and ten years in prison for the grand jury obstruction charge.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.

IRS-Criminal Investigation is investigating the case.

Senior Litigation Counsel Jen Ihlo and Trial Attorneys Mitchell Galloway and William Guappone of the Tax Division are prosecuting the case.