Ronald a. fossum: What You Need to Know About His Career, Controversy, and Lessons for Smart Tax Planning

aikdesigns September 24, 2025

0 5 7 minutes read

You might have seen the name Ronald A. Fossum Jr., or heard him referred to as Ron Fossum, pop up in a discussion about tax strategy, real estate investing, or financial education. Depending on who you ask, he’s viewed either as a sharp tax strategist, or someone whose practices raise serious questions. I wanted to dig into the facts: who he is, what he has done (both good and problematic), and what lessons you can carry forward — especially if you’re a business owner, investor, or someone trying to make sure your money decisions are sound.

By the end of this article, you’ll understand Fossum’s background and career, the legal controversies he’s been involved in, how he (or his organizations) responded, and what to watch for if you’re deciding whether to work with someone in his shoes. I’ll also include my own take on what seems ethical vs risky in tax/financial advice.

Early Life, Background & Career

Ronald A. Fossum Jr. was born on January 17, 1967, in Anchorage, Alaska. Like many in the financial education space, he didn’t stay in one lane: over time he built experience in insurance, real estate investment, business ownership, and eventually tax strategy.

One major chapter of his career is TaxPlan Wealth, a firm that claims to help business owners, high-income earners, and real estate investors reduce their tax liabilities, structure their businesses, protect their assets, and generally “keep more of what they earn.”

He also acts as a fractional CFO for several companies. That role means he is not necessarily full-time with one company, but rather provides strategic finance leadership, advice, and oversight across multiple clients.

From what is public, Fossum built up his brand through media appearances, educational content, podcasts, and teaching. These give him visibility, which helps when offering services like tax planning and business structuring.

Services & Expertise

So what exactly does Ron Fossum do (or offer to do)? Based on his own materials and external sources, here is a summary:

Tax Planning and Strategy: Helping clients legally lower tax bills, choosing the right tax-saving strategies, leveraging deductions, structuring income sources.
Business Entity Structuring: Advising on how to set up companies/LLCs/etc so that liability is limited, tax simplifications are possible, and the business is compliant.
Fractional CFO Services: Helping businesses with financial management, forecasting, cost controls, cash flow, financial oversight, and sometimes bookkeeping or reconciling.
Asset Protection: Advice aimed at protecting personal assets from risk, lawsuits etc. How to separate personal vs business, how to make sure that legal entities are used properly.
Education & Media Presence: Podcasts, speaking, online resources, courses or free materials. He uses those to build credibility and teach others.

These are all valuable services. Many business owners & real estate investors need this kind of help. The problem is that any time someone promises large savings, or claims to “beat” the tax system, you want to check carefully that their methods are legal, ethical, transparent.

The SEC Case and Legal Controversies

One of the key parts of Fossum’s story is what the U.S. Securities and Exchange Commission (SEC) alleged, and how that case plays out. Here’s what the public record shows.

What Was Alleged

Between roughly 2011 and 2016, Fossum allegedly raised more than $20 million from over 100 investors via three funds he owned: Smart Money Secured Income Fund, LLC, Turnkey Investment Fund, LLC, and Accelerated Asset Group, LLC.

The SEC’s complaint claimed multiple kinds of misconduct:

Misappropriation of investor funds: using fund-assets for personal expenses (for example, living in a property owned by one of the funds, paying for personal travel, even federal taxes)
Commingling of assets: mixing personal and fund finances in ways that violate fiduciary duty. Funds used to satisfy liquidity of other funds, etc.
Misleading investors: by misrepresenting financial condition of funds, not disclosing relevant information, implying fewer fees or different fee structures than actually charged.
Offering unregistered securities: The funds were alleged to be securities that should have been registered, or at least offered under valid exemption, but were not.

Legal Outcomes

In 2017, the SEC filed a case: Securities and Exchange Commission v. Ronald A. Fossum, Jr. and Alonzo R. Cahoon.
In June 2018, a federal court entered a final consent judgment against Fossum. In that judgment:
• He agreed (without admitting or denying the allegations) to pay back (“disgorge”) $840,729 plus prejudgment interest of $110,823.
• He was assessed a civil penalty of $320,000.
• He was permanently enjoined from violating various sections of U.S. securities law (Securities Act, Exchange Act, Investment Advisers Act).
• He was barred from participating in certain roles in securities industry: broker, dealer, investment adviser; also in offering penny stocks; participation in unregistered securities offerings etc.

So those are serious consequences.

Reputation, Response & Transparency

After the SEC’s action, how has Fossum addressed what happened, and how has the public viewed him? This is crucial for understanding whether his case is a warning-tale or a sign of chronic problems.

On his own sites (e.g. TaxPlanWealth), he presents himself as an educator, someone who helps people, especially business owners and high earners, legally reduce tax liabilities.
He acknowledges that there was an “administrative filing” involving an SEC matter in the past, and points out that he was never found guilty of criminal wrongdoing.
He frames his real-world experience—starting, buying, selling businesses, dealing with risks—as part of his credential. That helps with credibility for those who are interested in someone who has been “in the trenches.”

Public reception is mixed. Some of his clients or followers praise him as knowledgeable, helpful, and practical. Others express concern about the legal issues: for example, whether investors were sufficiently informed, whether the penalties were large enough, whether trust can be fully restored when someone has been enjoined.

Lessons Learned & Ethical Considerations

From Fossum’s story, there are many takeaways. Here are the ones I believe are especially important, both for advisors and for clients.

Transparency is non-negotiable
If you are asking people to invest money, or you are giving advice that affects someone’s financial future, you need to clearly disclose risks, fees, your track record, and any past legal or regulatory issues. Lack of disclosure is a big red flag.
Separation of funds and accurate accounting matters
Mixing personal expenses with fund or business funds, or using investor funds for personal benefit, is both unethical and usually illegal. Good advisors keep strictly separate records, budgets, and financial flows.
Registration & legal compliance
If you are offering something that qualifies as a security, or are in roles (investment adviser, broker, etc.) regulated, you need proper registrations, licensing, and adherence to securities laws.
Ethics over profit
Just because a strategy may reduce taxes a lot doesn’t mean it’s safe or right. Aggressive tax strategies can cross into unlawful territory, so it’s essential to check not only the potential benefit but also the legal/regulatory risk.
Clients must do their homework
As a client or investor, you must check:
- whether the advisor is registered or has licensure
- past regulatory or legal cases
- clarity in fee structure
- references or reviews
- how they handle disclosures

How to Choose a Good Tax / Financial Advisor Using This Case as Example

Using what we know from Fossum’s case, here’s a practical checklist to help you choose wisely:

What to Check	Why It Matters	Questions to Ask / Red Flags
Registration / Licenses / Credentials	Ensures advisor is bound by rules, regulation; recourse exists	“Are you registered with the SEC or equivalent regulator?” “What licenses do you hold?” If they act like an investment adviser but aren’t registered — warning.
Transparent Fee Structure	Hidden fees or misrepresented fees are common in bad cases	“What are all the fees?” “Are there any other costs I won’t know until later?” Fee disclosures in writing are good.
Disclosure of Past Legal / Regulatory Issues	Shows integrity; helps you assess risk	“Have you ever been the subject of an SEC complaint or lawsuit?” If they say “no” but records show otherwise — major issue.
Separation of Funds / Good Accounting	Avoids misuse of investor funds, protects you legally	“How do you handle investor funds vs your personal finances?” “Are funds audited? Is there regular reporting?”
Reviews, References, Reputation	Third-party validation helps; seeing what others experienced is useful	“Can I speak to past clients?” “Any independent reviews?” Also check for negative press or recorded judgment, etc.

Practical Advice for Business Owners / Investors

Here are recommendations for you, based on what I’ve learned from Fossum’s case and general best practices:

Always get things in writing: fee agreements, disclosures, what service specifically you are getting.
Use legal entities properly: LLCs, corporations, trusts—choose what fits. But ensure they are set up properly and maintained. Don’t just open an LLC to “look legal.”
Keep personal and business/patio/investor funds separate. Don’t allow personal expenses to drift into business or investment fund accounts.
When someone promises large tax reduction, ask: “How is this legal?” Get references, see past work, confirm that nothing is hidden.
If you are an investor investing into someone else’s fund: check whether the securities are registered or legally exempt, whether there has been a third-party audit, whether prospectuses or offering documents are clear.
Consult a lawyer or a certified accountant before doing anything risky. Laws vary by country / state, and what’s allowed in one place may be illegal in another.

Conclusion

Ronald A. Fossum Jr. is a strong example of a figure who operates at the intersection of useful tax and financial planning, but also controversy. His case reminds us that success, when combined with opaque practices or less of disclosure or compliance, can lead to serious legal and reputational risk.

If you are considering working with someone in his field, or offering such services, take the time to do thorough due diligence. Understand what is legal, what is ethical, and what the risk is. Wise financial decisions often come not just from what you gain but from what you avoid.

FAQ

Q: Was Ronald A. Fossum Jr. convicted of a crime?
A: No. He was not convicted of a criminal offense. The SEC case resulted in a consent judgment and civil penalties, but no criminal trial or conviction.

Q: What is a consent judgment?
A: It’s a legal agreement where the defendant (in this case Fossum) agrees to certain terms — like financial penalties, injunctions — without admitting or denying all allegations. It doesn’t carry the same status as a criminal conviction.

Q: Is working with a tax strategist always risky?
A: Not always. Many tax professionals work ethically, within the law, and help people. But risk arises when transparency is low, when legal/regulatory requirements are ignored, or when promises sound too good to be true.

Q: What red flags should I watch out for?
A: Some red flags: vague fee or cost descriptions; lack of registration/licensing; mixing investor funds and personal use; promises of large tax savings without explaining risk; lack of third-party verification (audits, reviews).

Q: Can I still use tax planning strategies safely?
A: Yes. Many legal strategies exist: using deductions, structuring businesses or entities smartly, using proper accounting, planning ahead. The key is to stay within laws, fully disclose to stakeholders/investors, and avoid aggressive or borderline tactics without guidance.