Mississippi Man Pleads Guilty to Evading $2 Million in Taxes

WASHINGTON – A Mississippi man pleaded guilty today to evading the payment of more than $2 million in federal income taxes. According to court documents, Eric Brian Rosenberg tried to hide money from the government after he learned that an IRS revenue officer was trying to collect the income taxes that he owed. Between 2016 and 2020, in a practice known as “check churning,” Rosenberg repeatedly removed most of the funds from his checking account by purchasing a cashier’s check, and holding that check until he wanted cash. When Rosenberg wanted money, he would deposit the cashier’s check into his bank account, withdraw the cash he wanted, and remove the unspent funds via another cashier’s check. Later, Rosenberg took additional steps to avoid paying the taxes he owed by forming a company, opening a bank account in the company’s name, depositing money into that nominee bank account, and continuing to churn checks. At the same time, from 2016 through 2021, Rosenberg spent over $1 million gambling at casinos. Rosenberg pleaded guilty to one count of tax evasion. He is scheduled to be sentenced on December 16, 2026, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division and United States Attorney Baxter Kruger of the Southern District of Mississippi made the announcement. IRS Criminal Investigation is investigating the case. Trial Attorney Matthew Hicks of the Criminal Division’s Tax Section and Assistant U.S. Attorney Stan Harris for the Southern District of Mississippi are prosecuting the case. On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.