Since publishing this blog post, I’ve found out that Rodolfo (Rudy) Terracina passed away unexpectedly in April 2016. He was 61 years old. Cause of death was a heart attack. Just because Rudy has passed on doesn’t mean the end of this tax scam. It could be perpetuated by another con artist. Or, if you were a victim of this scam, you may be searching for help or are still angry about being conned. Read the article below for more.

Boy, do I hate scammers and cheats. And I’ve found another one.

In November 2014, I became aware of a corporate tax shelter scam through a client…

It’s rather sophisticated. I’m not an accountant, but I’ll try my best to explain the scam.

You would attend an educational seminar where you were told that a research company was on the brink of introducing a brand new product to the market. The problem is that they need additional funds to cover a few expenses before they launch.

You are then convinced that if you put some money up front – anywhere between $1,500 to $10,000 – you would be investing in this research company. Because the company would take a loss, they would list your investment as a loss on your tax returns. And due to the loss, you could expect a big, fat refund cheque.

Watch this news report on the scam itself:

[easyembed field=”video-rudy”]

The refund cheque does come through and it often exceeds the initial investment…

You’d think that was a great return on investment, right? You put in as little as $1,500, you get back $10,000 or more, PLUS you’re helping a little ol’ research company bring their innovative product to market.

And then there’s a reassessment…

Canada Revenue Agency (CRA) does an audit. They reassess you and want their money back. And not just the initial amount on the refund cheque, but the penalties and interest owing, too. If you don’t pay, CRA will garnish your wages, put a lien on your house, or threaten with jail time.

The man who promotes this tax scheme is Rodolfo (Rudy) Terracina…

Or, Rudolfo-Agemosycko Aquilantiore de Guglielmi-Terracina according to his Facebook page and business website, Onyx Tax Maxter.

And there are other company names that Rudy has used – Doctor Tax, Roosewood, Accountable Tax, Onyx International Inc., Partners in Research, Agemo Corporation.

I’m already getting confused.

The problem is that what Rudy was doing was an outright scam…

The scam is based on a loophole in the Government of Canada’s Scientific Research and Experimental Development (SR&ED), according to a letter written by lawyers at DeVry Smith Frank LLP.

The five page letter was addressed to the Standing Committee on Finance to make them aware of the loophole that’s being exploited by “a figure well-known to the CRA.” Read the letter here.

On top of that, Rudy is a convicted felon. Here are the court transcripts from 1999 regarding his first conviction. He served time in prison. He didn’t learn his lesson because he went to prison again 10-years later for almost the same type of crime.

Here are some or Rudy’s additional “accolades”:

• Rudy, operating as Doctor Tax, was sued by the Thelwell’s in 2012, three-years after he released from prison.
• A rip off report was filed by jordankevin who went into detail about Rudy’s shady dealings.
• Kirk Brunsdon, a Thamesford-based tax consultant, worked with Rudy on filing the many tax reports. When my friend contacted him for a follow-up after getting a re-assessment letter from CRA, Kirk said “I am no longer associated with Rudy” and asked that my friend no longer contact him. Nice way to wash your hands of the situation.
• And on Rudy’s bio page, he goes through his life’s timeline, and makes mention of his first stint in prison, but wrote it as if he’d been victimized and wronged by his ex-wife, the “investors”, the government, and the entire court system. Ridiculous!
• Rudy was also a dead beat dad. He was imprisoned twice for non-payment of child support which amounted to half a million dollars! Don’t believe me? He made mention of this on his bio page.

The language on his bio page is a big joke…

He is forever the victim. His bio starts in 1956 with his birth in Italy and continues on and on and on, detailing every minor life event.

I don’t know what his childhood was like, but he was a victim early on:

• He has had a series of health challenges an accidents. Probably once every 3-years.
• Curiously, in 1977, Revenue Canada asked Rudy to stop filing taxes for others. He declines. This doesn’t even make sense to me, unless he was already doing something illegally from this point.
• In 1979, he is coerced into getting married. Really?
• Between 1979-1988, he “struggles to survive a very bad marriage”.
• Claims his now ex-wife kidnaps his six-year old daughter and “holds her for ransom.”
• In 1988, “divorce papers are finally filed by ex-wife, after she had over 15 affairs during the course of their 9 year marriage.” Again, really?
• In 1995, Rudy has two encounters with Revenue Canada – one is to offer him a position with the Crown corporation on condition he stop filing tax returns for others. Then a few months later, Revenue Canada audits Rudy and issues him a refund of $100,000. Curious…
• A year later, Rudy serves time for failure to pay child support. He would serve time again for the same charge a few months later.
• Then, he represents himself in a case brought on by Revenue Canada for tax fraud. His ex-wife is the “mastermind” behind the charges, he is “discredited,” there’s “no solid evidence,” but serves six-months in prison anyways.
• His bio stops at 2003 and it was during this time he moved on to his tax shelter scam.

If you’ve been a victim of Rudy’s corporate tax shelter scam, here are some options…

• Devry Smith Frank LLP is representing over 300 victims of this scam. You can contact Eldad Gerb to see if he’ll represent you.

• You can file a police report with the London Police Force (that’s the city Rudy operated his scam from). Ask for their Fraud department and speak to the Constable about getting a report filed.

• You can also file a report with the Canadian Anti-Fraud Centre (CAFC). Do not call the RCMP as they’ll only direct you to CAFC. Call them or file a report online. What they do is keep a record of all the scams that come through and if enough people report, they issue a warning through the media.

• Lastly, if you’re burning up inside about being conned, seek out the help of a therapist. If you’re queasy about going to someone’s office, you can receive virtual therapy through 7cups.com or BetterHelp.com.

But at the end of the day, nothing beats out good ol’ research...

Remember – a con artist has had years to perfect the way he woos people. It can be tough to turn away from a deal presented by someone who has that type of mastery.

I don’t care how hardened you are, or how much you say “It can’t happen to me.” Even the most educated can get caught up in a scam, especially one perpetuated by a slick, narcissistic, smooth-talking person.

At the end of day, research will be your friend…

Detach yourself from the promises being made, and do a search on the person’s name with the word “scam” beside it. See what pops up. Talk to family members. Don’t make such a big investment decision in isolation. Time will save you a lot of financial heartache.