On Dec. 11, 2014, Redmond resident Thomas R. Hazelrigg, III, was convicted in U.S. District Court on two counts of tax evasion.

The 68-year-old, a former real estate developer and lender in Bellevue, was indicted in 2013 on charges he hid his assets for 10 years while avoiding taxes and living a life of luxury. He was found guilty by a jury following a nine-day trial. Hazelrigg faces up to five years in prison on each count of tax evasion. His sentencing is scheduled for March 12.

According to court documents, Hazelrigg “did willfully attempt to evade payment of federal income tax, penalties and interest due and owing by him to the United States” from 1989-91 and in 1994.

Hazelrigg avoided $533,454 in taxes owed while spending millions of dollars on a Bellevue penthouse, two homes in Palm Springs, private aircraft, thoroughbred horse racing and country club fees, according to a release by the U.S. Attorney’s Office.

Court documents state that Hazelrigg “reported large losses on his individual income tax returns, but failed to report substantial income he received.” In addition, the documents go on to read that he placed money and other assets he owned in the names of nominees, which are “persons or entities that hold income or other assets in their own names, when the income or other assets are actually owned and controlled by another person or entity.”

In addition, Hazelrigg’s trial also focused on the illegal funneling of income from his businesses into accounts he kept hidden from the Internal Revenue Service, which the attorney’s office states he used to remodel his Bellevue penthouse and Palm Springs homes, including the installation of two glass chandeliers by Dale Chihuly valued at more than $460,000.

“Thomas Hazelrigg III, wrongly thought he could hide from his tax liability,” stated Special Agent in Charge Teri Alexander of IRS Criminal Investigation in a statement.

“What makes this case so egregious is that he consented that he owed the tax and then immediately took exceptional actions to avoid his obligation to pay, all while living a lavish lifestyle. This verdict today sends a strong message that tax evasion will not and cannot be tolerated. Americans who pay their fair share can be confident that IRS Criminal Investigation will pursue those who do not.”

Brandon Macz from the Bellevue Reporter contributed to this report.