Colorado Tax Fraud Case: Clinton Roosevelt Dale Faces 12 Counts

Prosecutors have accused Clinton Roosevelt Dale, a former IRS employee, of using his Denver tax business, Blue Bear Tax Solutions, to file fake tax returns and launder money. The indictment, unsealed on September 26, 2026, outlines twelve counts against Dale, alleging he disguised illegal drug proceeds as legitimate business income for clients between 2023 and 2025. This case highlights the serious consequences of tax fraud and money laundering, even for those with prior experience in tax administration.

Allegations of Disguising Drug Proceeds

The core of the indictment centers on Dale’s alleged practice of creating fictitious businesses and reporting his clients’ earnings from drug sales as income from lawful enterprises. This scheme aimed to conceal the true source of the funds and present a facade of legitimate earnings. Prosecutors claim that these falsified tax returns were not only used to evade taxes but also to help clients secure property loans from financial institutions by showing fabricated income.

One of the alleged clients was an undercover IRS Criminal Investigation agent who explicitly told Dale about their involvement in selling cocaine. Despite this clear disclosure, Dale is accused of proceeding with the preparation of false tax returns that misrepresented the income. The indictment details how these filings concealed the origins of the money, effectively laundering it through the tax system.

Improper Deductions and Underreported Income

Beyond disguising income, the indictment also points to improper business expense deductions being claimed on the false returns. For example, one client reportedly claimed over $101,000 in business expenses across three years. The undercover agent’s returns also included nearly $53,000 in alleged deductions. These inflated deductions, coupled with the misrepresented income, led to clients underreporting their taxable income and the actual tax owed.

The alleged financial manipulation was designed to provide clients with documentation of legitimate earnings. This documentation could then be used to apply for loans to purchase assets such as homes and luxury vehicles, further embedding the laundered money into the legal economy.

Dale’s Background and the Investigation

Clinton Roosevelt Dale, aged 51, had a prior career with the IRS, where he worked for over a decade as both a contact representative and a revenue agent. He resigned from the IRS in 2014, reportedly in lieu of termination. Following his departure from the IRS, he established Blue Bear Tax Solutions in Denver. The current investigation into his alleged activities is being conducted by IRS Criminal Investigation. The U.S. Attorney’s Office for the District of Colorado is prosecuting the case, with Assistant United States Attorney Amanda R. Scott leading the effort.

Trial Scheduled for November 2026

The case, identified as docket number 26-cr-210-SKC, is proceeding in the U.S. District Court for the District of Colorado. A jury trial is currently scheduled to begin on November 16, 2026. It is important to remember that all charges against Dale are currently allegations, and he is presumed innocent unless and until proven guilty in a court of law.

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