Fugitive in L.A. Tax-Scam Case Is Caught by Swiss

Gerald L. Rogers, a convicted tax-fraud artist who allegedly bilked more than $90 million from investors nationwide, was apprehended Thursday by Swiss authorities after a two-year manhunt that spanned five countries. He is being held for extradition.

Rogers, 54, lived in Malibu before jumping bail in 1987 after his conviction in Los Angeles of 29 tax and mail fraud counts that carried a maximum potential penalty of 103 years in prison.

Rogers was convicted of bilking 157 Angelenos out of about $1.3 million, according to U.S. attorneys who prosecuted the case. The investors were told that they were buying interests in low-budget films. In addition, Rogers told investors that they could write off $31,000 on their tax returns for every $6,000 they invested, said Stephen A. Mansfield, assistant U.S. attorney.

In reality, the films and writeoffs were bogus, Mansfield said. Investor money was diverted for Rogers’ use and ended up in a Panamanian bank account, Mansfield said. And Rogers was able to produce only purchased “stock” film and a small array of home movies at trial.

Rogers is also wanted to face trial in Denver relating to a defunct “gold for tax dollars” deal.

Rogers allegedly told investors, who poured $90 million into the since-disallowed tax shelter, that their funds would be used to develop gold mine properties in Canada. A federal indictment charges that the money was actually “diverted and dissipated” by Rogers, and the 400% to 500% writeoffs claimed by investors were subsequently denied by the Internal Revenue Service.

Authorities said Rogers fled the United States in style, leaving the country aboard his $2.1-million yacht, the Laissez-Faire. As a fugitive, he used a series of assumed names including Claude DeBlue and Ambrose I. Goldsmith.