Two businessmen have been jailed for what prosecutors have described as one of the largest tax frauds in American history.

More than ten years ago, Jeffrey Greenstein and Charles Wilk helped clients avoid $240 million in taxes using Manx companies to buy and sell imaginary shares.

The men, from Seattle, were sentenced on Friday for setting up a tax shelter scheme to help wealthy clients avoid capital gains tax.

Both pleaded guilty in September to conspiracy to defraud the US government and aiding in the filing of a false tax return.

As well as their prison terms, both agreed to pay $7 million in penalties and to give talks to graduate schools about business ethics.