How a Colorado Dentist Turned Tax Tricks Into a $1.6M Tax Evasion Case

How one man turned dental drills into tax thrills and what every professional should learn from it! Ever heard the saying, “Smile, it’s free”? Well, Ryan Ulibarri, a Colorado-based dentist, figured out a way to make those smiles come at a very steep cost, just not to him. At least, not until now. Ulibarri, owner of Ulibarri Family Dentistry in Fort Collins, spent nearly a decade crafting the ultimate tooth fairy tale: millions in hidden income, luxury expenses disguised as charity, and a tax shelter so convoluted it would make a CPA’s gums bleed. But on June 18, 2025, that story came to an abrupt ending. Once a trusted name in Fort Collins, this dentist now finds himself behind bars; serving a 41-month sentence for a tax evasion scheme that would leave even seasoned auditors shaking their heads. How does a dental professional end up dodging $1.6 million in taxes? Let’s just say the story involves a maze of shady trusts, forged paperwork, and a taste for luxury living, boats included.

This Wasn’t Just Creative Accounting

The plot began in 2016, when Ulibarri paid $50,000 for what the IRS defines as an abusive-trust tax shelter. Sounds fancy—until you realize it's a fraudulent maze of shell entities meant to dodge taxes. He created a business trust, a family trust, a charitable trust, and a private foundation, all under his control. Then, to cover his tracks, he got friends to sign as the fake creators of these trusts, effectively forging the origin stories of each entity. As the DOJ put it, these moves created "the illusion that the funds belonged to those entities, not him."

Now here’s where it gets spicy: despite being warned by attorneys and CPAs that Colorado law prohibits trusts from owning dental practices, Ulibarri transferred the majority ownership of his clinic to the business trust anyway. That’s like being told not to drill into a nerve—and going ahead anyway. Because when it comes to hiding money, who better to call than your inner circle… and rope them into potential federal charges?

Ballgame Tickets, Boats & Baloney

From 2016 to 2023, Ulibarri funnelled more than $5 million in earnings into the bank accounts of his newly formed entities. He kept full control, using the funds to bankroll a lifestyle that included:

• His home mortgage
• Credit card bills
• Luxury vacations
• Boats
• And yes, professional baseball season tickets

He then filed false tax returns for himself, his practice, and the trusts, claiming personal expenses as charitable deductions or trust-related costs. In total, Ulibarri caused a $1.5 million tax loss to the U.S., plus hundreds of thousands more to the State of Colorado.

Root Canal Justice

After a multi-year investigation by IRS Criminal Investigation—who Acting Deputy Assistant AG Karen E. Kelly called "methodical" in their work—Ulibarri was sentenced by U.S. District Judge Nina Y. Wang. The full penalty package includes:

• 41 months in federal prison
• 3 years of supervised release
• $150,000 fine
• $1,449,121 restitution to the IRS
• $166,966 restitution to the Colorado Department of Revenue

The case was prosecuted by Trial Attorneys Amanda R. Scott and Lauren K. Pope, along with Assistant Chief Andrew J. Kameros of the Department of Justice’s Tax Division. And if you're wondering, yes; the IRS Criminal Investigation division handled this one like a root canal: slow, methodical, and ultimately very painful (for Ulibarri, at least).

This Is a Lesson Every Professionals Needs

Ulibarri’s downfall isn’t just a cautionary tale for dentists—it’s a wake-up call for any high-earning professional tempted by too-slick tax schemes.

Here’s what we should all take away:

• If it sounds too good to be legal, it probably is: No credible advisor will ask you to lie on trust documents or pretend your friend founded your foundation. If someone does what? Run.
• Don’t ignore your A-Team: Ulibarri has CPAs and attorneys waving red flags. He chose to ignore their advice. That wasn’t savvy—it was straight-up reckless.
• Trusts aren’t toys: Used properly, trusts are powerful tools for estate and tax planning. Abused, they’re a fast track to felony charges.
• Your profession won’t shield you: The IRS doesn’t care how many degrees or dollars you have. If you’re raking in the dough, you’re probably on their radar already.

Final Bite

Ulibarri’s story isn’t just a headline; it’s a cautionary tale. One where a trusted professional slowly eroded his credibility and career with a trail of paperwork and deception. In the end, this case isn’t about dentistry. It’s about ethics. About the thin line between clever and criminal. And about what happens when professionals start treating the IRS like a cavity to be drilled around instead of being addressed. So, if you're ever tempted by a too-slick tax strategy that involves words like “foundation” and “charitable trust” and “your buddy signs here,” just remember: the IRS has its own set of sharp instruments, and they’re very, very precise. Pro Tip for Readers: Want to avoid being the next Ulibarri? Stick to verified advisors, ask questions, and remember smart tax planning never requires pretending your cousin started a foundation. Follow us for more no-nonsense stories from the frontlines of finance, fraud, and forensic failings.