To hide his criminal activity, Tom, the leader of a gang, convinces his accountants, Yaxley and Dolohov, to create a shell corporation. This corporation will operate at a loss so that Tom can avoid paying taxes on his earnings. Is the federal government likely to become involved in pursuing and prosecuting Yaxley and Dolohov?

Question

Quizplus · Accepted Answer

The federal government has jurisdiction over crimes that involve interstate commerce, which includes financial crimes. By creating a shell corporation to avoid paying taxes on criminal earnings, Yaxley and Dolohov have engaged in financial fraud that involves interstate commerce, making them vulnerable to federal prosecution.

To Hide His Criminal Activity, Tom, the Leader of a Gang