The Tax Times: Colorado Dentist Sentenced to 41 Months in Prison for Multi-Million Dollar Tax Evasion

According to DoJ, Ryan Ulibarri, a dentist and owner of Ulibarri Family Dentistry in Fort Collins, Colorado, was sentenced on June 17, 2025, to 41 months in federal prison for tax evasion related to his use of an illegal tax shelter scheme. The sentencing follows a multi-year investigation and prosecution by federal authorities.

A Stark Reminder: Crossing the Line on Tax Strategies

On June 17, 2025, Dr. Ryan Ulibarri, owner of Ulibarri Family Dentistry in Fort Collins, Colorado, was sentenced to 41 months in federal prison after being convicted of tax evasion through an illegal tax shelter scheme. This follows a lengthy, multi-year investigation by federal authorities, highlighting the severe consequences of tax fraud for professionals.

Anatomy of the Scheme

Starting in 2016, Dr. Ulibarri invested $50,000 in an abusive-trust tax shelter. Over several years, he developed a complex plan to conceal over $5 million in dental practice income from tax authorities. Here’s how the scheme operated:

· Multiple Entities Created: Ulibarri established three trusts and a private family foundation, naming himself as trustee and enlisting friends to falsely sign documents as “creators” to mask his involvement.

· Illegal Transfers: He transferred majority ownership of his dental practice to one of these trusts, despite warnings that this violated Colorado law.

· Funds Concealed: Revenue from the dental business was routed through accounts for the trusts and foundation, making the money appear to belong to those entities rather than to Ulibarri personally.

· Personal Benefit: Hidden funds were used for personal expenses, including mortgage payments, boats, luxury travel, credit card bills, and season tickets for professional baseball.

· False Tax Returns: Ulibarri filed fraudulent tax returns for himself, his business, and the trusts, claiming personal expenses as business or charitable deductions.

The Fallout: Sentence, Penalties, and Restitution

The legal repercussions were significant:

· Prison Sentence: 41 months in federal prison.

· Supervised Release: Three years following imprisonment.

· Financial Penalties: A $150,000 fine, over $1.4 million in restitution to the IRS, and nearly $167,000 in restitution to the Colorado Department of Revenue.

· Professional Reputation: Irreversible damage to his personal and professional standing.

Penalty	Amount/Term
Prison Sentence	41 months
Supervised Release	3 years
Federal Fine	$150,000
Restitution to IRS	$1,449,121
Restitution to Colorado Dept. of Rev	$166,966

Lessons for Professionals

· Complexity Doesn’t Equal Legality: Creating trusts or foundations doesn’t automatically make a tax strategy legal—if it seems too good to be true, it probably is.

· Heed Professional Advice: Ulibarri ignored warnings from advisors, resulting in prison time and massive financial penalties.

· Transparency is Essential: Legitimate tax strategies require proper documentation and justification; concealment leads to criminal liability.

Closing Thoughts

The case of Dr. Ryan Ulibarri serves as a powerful warning to dental, medical, and business professionals tempted by “creative” tax schemes. Tax planning should always be transparent and above board—anything less risks severe legal consequences.

If you wouldn’t want it explained in court, don’t do it.

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