David Gebhardt, a 54-year-old attorney from Brentwood, Tennessee, pleaded guilty on May 8 to filing false tax returns that concealed millions of dollars in income from cryptocurrency sales and his consulting business.
The case highlights ongoing efforts by federal authorities to address financial crimes involving digital assets and unreported income. Gebhardt admitted in court that he used decentralized exchanges and nominees to hide proceeds from cryptocurrency investments between March 2018 and December 2022. He withdrew approximately $6.6 million during this period but did not report the income on his tax returns, despite warnings from his accountants. On tax filings for the years 2020 through 2022, he falsely indicated no involvement in virtual currency transactions while continuing such activities. He also failed to disclose all gross receipts earned by his consulting business.
In total, Gebhardt caused a tax loss exceeding $550,000 by submitting false individual tax returns for five years. He pleaded guilty to two counts of filing false individual tax returns and faces up to six years in federal prison at sentencing scheduled for November 6, as well as restitution and monetary penalties. The final sentence will be determined by a federal district court judge after considering relevant guidelines and statutory factors.
United States Attorney Braden H. Boucek for the Middle District of Tennessee said: "The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars." Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division joined Boucek in announcing the plea agreement.
IRS Criminal Investigation is handling the investigation into Gebhardt's conduct. Trial Attorney Parker Tobin of the Criminal Division’s Tax Section and Criminal Chief Ahmed Safeeullah for the Middle District of Tennessee are prosecuting the case.
The U.S. Attorney's Office for the Middle District of Tennessee enforces federal laws across 32 counties in middle Tennessee, manages both criminal prosecutions and civil litigation on behalf of the United States, collaborates with law enforcement agencies to improve community safety, and operates out of Nashville according to its official website.
