Alexander Smirnov, a former FBI informant, has been indicted on multiple charges related to tax evasion and fraud. The indictment, filed in the U.S. District Court for the Central District of California, accuses Smirnov of concealing significant income and filing false tax returns over several years. Despite earning over $2.3 million between 2020 and 2022, Smirnov allegedly misrepresented his financial situation, claiming his business had gross receipts of only $40,000 to $50,000 annually, with just a small tax liability.
Smirnov ran a consulting business under the name Avalon Group, Inc., which was registered in Delaware, but the company allegedly never filed any corporate tax returns. Avalon received substantial income during the period, including approximately $1.35 million in 2020, $684,000 in 2021, and $300,000 in 2022. Smirnov is accused of using these funds for personal expenditures, including lavish purchases such as a $1.4 million condominium in Las Vegas, a Bentley, and high-end clothes, jewelry, and accessories for both himself and his domestic partner.
The indictment further reveals that Smirnov and his partner co-mingled their personal finances with Avalon’s business funds, using the company’s account to cover personal expenses. He allegedly manipulated the opening of Avalon’s business bank account, initially listing a bookkeeper as president, only to later remove her and assume sole control. This was part of a broader scheme to obscure his personal use of corporate funds.
In addition to these activities, Smirnov allegedly misled a tax preparer into filing false returns for both himself and his partner. The tax preparer, who was initially hired to help with Smirnov’s filings, became suspicious when Smirnov refused to disclose how he earned his income and instructed the preparer to delete any related communications. The returns filed under Smirnov’s name contained fabricated figures, including false deductions and income amounts, to drastically reduce his tax liability.
The charges include multiple counts of filing false tax returns, both for Smirnov and his domestic partner, as well as three counts of tax evasion. These actions have led to a significant federal investigation into Smirnov’s finances.
This indictment follows a separate and highly publicized case in which Smirnov was implicated in falsely accusing Hunter Biden and his father, President Joe Biden, of being involved in a bribery scheme. Smirnov had claimed that the Bidens received bribes from the Ukrainian energy company Burisma during Joe Biden’s vice-presidency, but these allegations were debunked as baseless. Smirnov’s involvement in that case, combined with his recent tax evasion charges, paints a picture of a man who has repeatedly manipulated the legal and financial systems for personal gain.
The case underscores the complexity of Smirnov’s financial activities, which blended legitimate business dealings with deceitful tax schemes and personal indulgence. If convicted, Smirnov faces significant penalties for his alleged crimes, which could include lengthy prison time and substantial fines. His role as an FBI informant complicates the matter further, as it suggests a long history of involvement with federal authorities that now raises questions about his conduct and motivations.
Smirnov’s legal troubles represent a significant chapter in his history, one that contrasts sharply with his previous role assisting federal investigations. As the case moves forward, further details are expected to emerge about the extent of his financial misconduct and any potential connections to larger criminal activities.
