Client is a doctor, was contacted by who said they were with the DOJ working with the DEA.  Demanded money if he didn't want to be part of the criminal proceedings.  They had a lot of info on him, such as old vin#'s, his DEA account number, doctor license #, etc....  FBI finally told him it was a scam and had never seen anything so sufficicated and looking like it really came from the Federal Government D(DOJ, DEA,etc.. forms and letters)being used.  Long story short, he lost maybe $50 to $60k.  Is this going to be a deductible loss for his S Corp K1 to flow to the 1040.