Local Practitioner Used Illegal Tax Shelter to Hide Income from IRS
FORT COLLINS, CO – A Fort Collins dentist has pleaded guilty to six counts of tax evasion after authorities uncovered a multi-million-dollar scheme involving fraudulent trusts and hidden income.
Ryan Ulibarri, owner of Ulibarri Family Dentistry, admitted to illegally concealing over $3.5 million in earnings through an abusive trust tax shelter, according to the U.S. Department of Justice (DOJ).
How the Scheme Worked
Court records reveal that since 2016, Ulibarri used a network of fake trusts and a private foundation to disguise personal income as business expenses and charitable donations. He paid $50,000 for the tax shelter setup, which included:
- A business trust that falsely held ownership of his dental practice.
- A family trust and a charitable trust designed to funnel income.
- A private family foundation controlled entirely by Ulibarri.
Despite warnings from legal and financial professionals that Colorado law prohibits trusts from owning dental practices, Ulibarri moved forward with the scheme. He also recruited friends to fraudulently sign trust documents.
Lavish Lifestyle Funded by Fraud
Between 2017 and 2022, Ulibarri funneled more than $3 million from his dental practice into trust bank accounts, creating the illusion of third-party ownership. In reality, he maintained full control, using the money for personal expenses, including:
- Home mortgage payments
- Credit card bills
- Luxury purchases, including boats
- Professional baseball season tickets
On his tax filings, Ulibarri falsely reported his dental practice income as trust earnings and claimed fraudulent deductions for personal expenses disguised as charitable donations. Investigators estimate his actions cost the IRS over $1 million in lost tax revenue.
Facing Federal Sentencing
Ulibarri is set for sentencing on June 17, 2025. Each count of tax evasion carries a maximum penalty of five years in prison, along with fines, restitution, and supervised release.
The case is being prosecuted by attorneys from the DOJ’s Tax Division, and the IRS Criminal Investigation’s Denver Field Office led the investigation.
For updates on this case and other news impacting Northern Colorado, visit North Forty News.