Prometheus 6

U.S. Sues 2 Over Gold-Mine Tax Promotion
By LYNNLEY BROWNING

The Justice Department filed two lawsuits on Thursday in a move against what it said was a fraudulent gold-mining scheme sold to dozens of wealthy investors, including seven current or former National Football League players.

Prosecutors say the promoters of the investment, known as Midas, for mining interest development action strategy, promised investors a return of at least 34 percent if they invested refunds they got after filing amended tax returns that claimed bogus deductions related to supposed gold-mining expenses in Colorado, Arizona and elsewhere.

According to prosecutors, the amended returns generated large tax refunds for earlier years. Investors were to give those refunds to the promoters as their investment in the mining project, and in some cases they did so.

The Justice Department lawsuits did not name the professional football players, but said that one was from Texas and another was from Georgia.