Qiang “Michael” Bi Sentenced for Selling More Than 35,000 Illegally Copied Videogames Over the Internet

Source- http://cincinnati.fbi.gov/dojpressrel/pressrel10/ci122910.htm

COLUMBUS—Qiang “Michael” Bi, 36, of Powell was sentenced in United States District Court here to 30 months incarceration for selling more than 35,000 illegally copied computer games over the Internet between 2005 and 2009. He will also be required to make restitution to the companies who created the games. The amount of restitution is yet to be determined.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Keith L. Bennett, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Division (FBI), and Dugan T. Wong, Assistant Inspector in Charge, U.S. Postal Inspection Service, announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.

Bi pleaded guilty on July 28, 2010 to one count of mail fraud, one count of copyright infringement, and one count of aggravated identity theft. Bi was sentenced to six months each for the mail fraud and copyright infringement crimes. Those sentences will run concurrently. He will serve an additional 24 months for the aggravated identity theft.

Judge Marbley also sentenced Bi to two years of supervised release following his prison time. Twelve months of the supervised release will be spent in home confinement. He was also sentenced to serve 416 months of community service.

According to a statement of facts read during Bi’s plea hearing, agents executed a search warrant at Bi’s house and found multiple CD duplicators and more than 1,000 printed counterfeit CDs. Some of the CDs were still in the duplicator. During their investigation, agents learned that Bi would buy a single copy of a game, illegally duplicate it and sell the copies on eBay.com and Amazon.com. He also set up a website for customers to download the games they bought. Bi accepted payment through eBay and PayPal accounts in his name and in others’ names.

Bi sold more than 35,000 copies of counterfeit software games between 2005 and December 2009. The games were original works of more than 60 different software companies. The estimated total retail value of the games is about $700,000. He sold each counterfeit game for around $9.95.

Bi agreed to forfeit $367,669 in cash which represents the proceeds of the crimes. He also agreed to forfeit his interests in his house, a car, and all computer and electronic equipment used to illegally copy and sell the games.


************************************************************************
Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting
www.irsrewards.com
 

Phillip Ernest Narum Faces 17-Count Indictment on Tax and Fraud Charges

Source- http://phoenix.fbi.gov/dojpressrel/pressrel10/px122310.htm

TUCSON, AZ—A federal grand jury in Tucson has returned a 17-count indictment against Phillip Ernest Narum, 46, of Marana, Arizona. The indictment, returned December 8, 2010, charges Narum with an elaborate scheme to defraud his employer, Young & Sons Contracting, Inc. of Tucson.

The indictment alleges that from February 2005 to June 2008, Narum knowingly and intentionally devised a scheme and used deception to defraud $623,277 from Young & Sons. Narum worked for the company as its operations manager.

Narum is charged with diverting funds from Young & Sons to his personal use by negotiating approximately $218,873 in Young & Sons checks payable to him at banks for cash or cashier's checks. He then used the proceeds to pay personal debt and purchase personal assets. Narum also deposited Young & Sons checks totaling approximately $671,499 into three personal and business accounts to pay personal debt and purchase personal assets.

Narum further used Young & Sons business checks and money transfers from the company's bank account for personal expenses unrelated to Young & Sons business, converting approximately $78,417 of Young & Sons money to his personal benefit. He also charged approximately $93,000 of his personal expenses to a Young & Sons business credit card.

Before he was terminated by Young & Sons, Narum attempted to conceal the amount of money in the fraud by depositing approximately $140,310 into a Young & Sons account. He noted in the business’ cash journal that the payments were from him when in reality; approximately $83,855 of those deposits came from Young & Sons owned assets.

In total, Narum received $1,061,789 when he was only entitled to approximately $381,057 in compensation from Young & Sons for his employment. Narum paid back $56,455 to Young & Sons before he was terminated, thus defrauding Young & Sons of approximately $623,277.

Narum is also charged with tax fraud because on his 2005 Individual Income Tax Return, he failed to report $171,351 of gross receipts. On his 2006 Individual Income Tax Return, he failed to report $59,100 of gross receipts. Narum also willfully failed to file a timely 2007 Individual Income Tax Return despite receiving gross receipts of $531,659.

Narum will appear before a United States Magistrate Judge in Tucson for his initial appearance and setting of bail conditions in January 2011.

The federal indictment charges Narum with violating Title 18 of the United States Code, Section 1343; Title 26 of the United States Code, Sections 7206(1) and 7203, Filing False Income Tax Returns and Willful Failure to File an Income Tax Return.

A conviction for wire fraud carries a maximum penalty of 20 years, a $1,000,000 fine or both; a conviction for filing a false income tax return carries a maximum penalty of 3 years, a $250,000 fine or both; and a conviction for willful failure to file an income tax return carries a maximum penalty of one years, a $100,000 fine or both.

An indictment is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation.


************************************************************************
Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting
www.irsrewards.com
 

The United States has sued a Chicago tax return preparer Martha A. Jones, to bar her from preparing federal tax returns for others

Source- http://www.justice.gov/opa/pr/2010/December/10-tax-1473.html

WASHINGTON – The United States has sued a Chicago tax return preparer to bar her from preparing federal tax returns for others, the Justice Department announced today.

The civil injunction suit filed in the Northern District of Illinois alleges that Martha A. Jones claims bogus tax deductions on her customers’ federal income tax returns. Jones allegedly includes deductions for fabricated charitable contributions, employee business expenses and other items. According to the government complaint, the Internal Revenue Service examined 56 of the returns that Jones prepared for tax years between 2005 and 2008 and found that all of them contained inaccuracies. The complaint also alleges that Jones fails to sign her customers’ returns and has continued to do so even after being advised that she is legally required to sign the tax returns that she prepares.

The complaint estimates that the tax losses to the United States from Jones’s misconduct could exceed $1 million.

In the past 10 years, the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax fraud promoters. Information about these cases is available on the Justice Department website.


************************************************************************
Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting
www.irsrewards.com
 

Andrew Park, an owner and executive of Asian Village Detroit, Inc. ("Asian Village"), Pleads Guilty to Felony Tax Evasion

Source- http://detroit.fbi.gov/dojpressrel/pressrel10/de122210.htm

Andrew Park, 46, of Ann Arbor, Michigan, an owner and executive of Asian Village Detroit, Inc. ("Asian Village"), Pangborn Technovations, Inc. ("PTI"), and the Security Communication Alert Network ("SCAN"), pleaded guilty yesterday to attempting to evade the payment of more than $300,000 in taxes to the Internal Revenue Service "(IRS"), United States Attorney Barbara L. McQuade announced.

McQuade was joined in the announcement by Erick Martinez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation; FBI Special Agent in Charge Andrew Arena; and Special Agent in Charge Giovanni Tiano, Department of Homeland Security, Office of Inspector General.

During a hearing this afternoon before United States District Judge Patrick J. Duggan, Park admitted that he had attempted to evade the payment of taxes on $898,000 in income that he earned in connection with Asian Village, SCAN, and PTI during the years 2005 through 2007. Park acknowledged that he lied in documents submitted to the IRS, and he disguised income that he received as loans from Asian Village, SCAN, or PTI. Park was charged by way of a criminal Information on Friday, December 17, 2010. Based on his guilty plea and conviction for felony tax evasion, Park is facing a maximum of five years in prison and a fine of up to $100,000.

United States Attorney McQuade said, "Andrew Park sought to avoid paying taxes on more than $890,000 in income that he earned, legally and illegally, through his ownership of Asian Village, SCAN, and Pangborn Technovations, in connection with work these businesses had with the City of Detroit."

The case was investigated by special agents of the IRS, the FBI, and the Department of Homeland Security, Office of Inspector General. It is being prosecuted by Assistant United States Attorneys Robert Cares and David A. Gardey.


************************************************************************
Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting
www.irsrewards.com
 

Yooho Weon The Owner of Maryland Pawn Shop, Pleads Guilty to Evading Taxes on Over $18.4 Million in Income

Source- http://baltimore.fbi.gov/dojpressrel/pressrel10/ba122110a.htm

BALTIMORE—Yooho Weon, age 39, of Centreville, Virginia, pled guilty today to attempting to evade income taxes for tax years 2004 through 2008, during which time Weon had income of more than $18.4 million.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Rebecca Sparkman of the Internal Revenue Service - Criminal Investigation; Acting Postal Inspector in Charge Keith Fixel of the U.S. Postal Inspection Service - Washington Division; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Richard A. McFeely of the Federal Bureau of Investigation; and Interim Chief Mark Magaw of the Prince George’s County Police Department.

"Prosecuting individuals who intentionally conceal income is a vital element in maintaining public confidence in our tax system," stated Rebecca Sparkman, Internal Revenue Service-Criminal Investigation Special Agent in Charge, Washington, D.C. Field Office. "Willfully filing a false tax return is the same as stealing and there are serious consequences."

According to Weon’s plea agreement, in 2009, the Internal Revenue Service Criminal Investigation (IRS-CI) received information that Yooho Weon, also known as “Peter,” was failing to report income to the IRS. Weon is the owner of Parkway Pawn Shop, Inc. and Earth 1 Computer, Inc. DBA Bargains 101 / Parkway Pawn Shop, located at 5664 Annapolis Road in Bladensburg. IRS records show that Weon has not filed any U.S. Corporate Income Tax Returns for 2003, 2004, 2005, 2006, 2007, and 2008. As part of his business, Weon purchased items in his pawnshop and generated gross income from online sales through his website, eBay, flea markets, cash sales from his store and credit card sales. eBay / PayPal records revealed that Weon and his business have been selling merchandise online and received approximately $6,531,334.47 between May 31, 2000 and August 27, 2009. This money was wired into Weon’s bank accounts. Other bank records from Weon's companies show total gross sales from the businesses of $18,418,796.84 from 2004-2008, none of which was reported to the IRS.

The total tax loss owed to the IRS is approximately $2,400,000.

Weon faces a maximum sentence of five years in prison and a $250,000 fine for each of five counts of attempting to evade income taxes. U.S. District Judge Benson E. Legg has scheduled sentencing for March 25, 2011 at 11:30 a.m.


************************************************************************
Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting
www.irsrewards.com
 

Former UBS Banker Renzo Gadola, Pleads Guilty to Helping American Client Conceal Assets Offshore

Source- http://www.justice.gov/tax/txdv101474.htm

WASHINGTON - Renzo Gadola, 44, has pleaded guilty to conspiring to defraud the United States, the Justice Department announced today. Gadola, a former UBS banker, was arrested in Miami after meeting with a client at a Miami hotel and attempting to persuade that client to not disclose to the United States that the client owned and controlled a bank account at Basler Kantonalbank, a regional bank headquartered in Basel, Switzerland. Gadola is scheduled to be sentenced on March 10, 2011, by U.S. District Judge James L. King. He faces a maximum of five years in prison.

According to court documents, Gadola, a citizen and resident of Switzerland, was a registered investment advisor with the U.S. Securities and Exchange Commission (SEC). From approximately 1995 through August of 2008, Gadola was employed as a private banker by UBS AG, Switzerland’s largest bank. In February 2009, Gadola began working in Switzerland as an independent investment advisor, doing business under the name RG Investment Partner AG.

According to court documents, Gadola worked closely with a fellow former UBS banker who was not registered with the SEC and who had indicated that he was afraid of traveling to the United States for fear of being arrested because of his cross-border banking activities. Hence, the two arranged that Gadola would travel to the United States and meet with the clients to discuss their investments in undeclared accounts.

According to court documents, on Nov. 6, 2010, Gadola met with a client in a Miami hotel. The meeting was recorded. This client owned and controlled an undeclared account at Basler Kantonalbank. The undeclared account was funded when the client provided Gadola’s partner, the former UBS banker, with approximately $445,000 in cash. The client gave the cash to Gadola’s partner during two meetings at a hotel in New Orleans.

According to court documents, during the Nov. 6, 2010, meeting, Gadola attempted to persuade the client to not disclose the Basler Kantonalbank account to United States authorities. Gadola told the client that there was a “99.9 %” chance the client had nothing to worry about because the “likelihood . . .that they will somehow. . . find out about the account is practically zero percent.” Further, Gadola told the client that there was no “paper trail” associated with the undeclared account.


************************************************************************
Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting
www.irsrewards.com
 

Guadalupe Valencia Pleads Guilty to Federal Fraud Charges in Nearly $7 Million Investment Scheme

Source- http://losangeles.fbi.gov/dojpressrel/pressrel10/la122010a.htm

LOS ANGELES—A West Covina woman pleaded guilty today to six federal fraud charges, admitting that she ran a Ponzi scheme that bilked more than 150 victims out of approximately $6.9 million.

Guadalupe Valencia, 46, pled guilty to two counts of mail fraud, two counts of wire fraud and two counts of tax fraud. Valencia pleaded guilty before United States District Judge S. James Otero, who remanded Valencia into custody after she pled guilty.

Valencia ran her scheme out of the Downey offices of companies she called Real Estate & Loan Consultants and R.E. Equity Group, Inc. Beginning in 2001 and continuing through 2009, Valencia promoted two types of investment pools, with one purportedly funding loans to purchase real estate, and a second purporting to fund short-term loans to businesses. According to her plea agreement, Valencia promised high rates of interest in both investment vehicles—from 8 percent to 20 percent in as little as 45 days. Valencia admitted that she falsely told investors that their investments were fully secured, backed by deeds of trust on valuable real estate, as well as promissory notes that equaled “money-back guarantees.”

By pleading guilty, Valencia admitted that the investments she promoted did not generate any profits and that she used newer investor funds to pay original investors. Further, Valencia admitted that she had provided victims with worthless promissory notes that she had created.

In addition to the mail and wire fraud charges, Valencia pled guilty to two counts of subscribing to false tax returns for the tax years 2007 and 2008. In her plea agreement, Valencia admitted that she filed the returns with the Internal Revenue Service knowing that they were false. Specifically, for the 2007 tax year, Valencia failed to report more than $280,000 to the IRS. For the 2008 tax year, Valencia failed to report more than $470,000 on the tax return that she filed.

Judge Otero is scheduled to sentence Valencia on May 23, 2011. At that time, the defendant faces a statutory maximum sentence of 86 years in federal prison and fines totaling $1.5 million.

The investigation of Valencia was conducted by IRS - Criminal Investigation and the Federal Bureau of Investigation.


************************************************************************
Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting
www.irsrewards.com
 

Russell Adam Cole, Abby Rae Cole and Robert Paul Bossany, Sentenced for Conspiracy to Commit Mail Fraud, Wire Fraud and Defrauding Best Buy

Source- http://minneapolis.fbi.gov/dojpressrel/pressrel10/mp122010.htm

A Deerfield, Illinois couple and a 39-year-old man, who previously lived in Prior Lake, were sentenced earlier today in federal court in Minneapolis in connection with a scheme to defraud Richfield-based Best Buy Co., Inc., by over-billing the company for computer parts. United States District Court Chief Judge Michael J. Davis sentenced Russell Adam Cole, age 50, to 180 months in prison on one count of conspiracy to commit mail fraud and wire fraud, 12 counts of mail fraud, five counts of wire fraud, four counts of tax evasion, one count of conspiracy to commit money laundering, and one count of conspiracy to defraud the U.S. Abby Rae Cole, age 53, was sentenced to three years of probation on one count of conspiracy to commit mail fraud and wire fraud, one count of conspiracy to defraud the United States, and four counts of tax evasion. Judge Davis also sentenced Robert Paul Bossany, now of Chetek, Wisconsin, to 90 months in prison on one count of conspiracy to commit honest services mail fraud and one count of money laundering for his role in defrauding Best Buy.

The couple was originally indicted on July 20, 2009, and convicted by a jury on June 3, 2010, following a 17-day trial. Bossany was charged on December 15, 2008, and pleaded guilty on January 29, 2009.

Following today's sentencings, Shawn S. Tiller, Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service ("USPIS"), which covers the Twin Cities, said, "The sentences handed down today should send a message to would-be criminals who are considering using the U.S. mail to perpetrate their fraudulent schemes. The U.S. mail is still one of the most trusted means of communication in this country, and the U.S. Postal Inspection Service will continue to uphold that public trust."

Best Buy offers repair services on products, including personal computers. Beginning in the early 2000s, it devised an automated, online, reverse auction system, called the Parts Procurement Network ("PPN"), in an effort to obtain computer repair parts quickly and at the lowest possible prices. Through the PPN, vendors received access to a "needs" file, which listed the computer parts Best Buy wanted. Those vendors submitted bids on the parts they wished to supply, quoting both availability and price. After each bidding period, Best Buy determined which vendors had won the orders. Those vendors then had to invoice Best Buy, through a third party, at the prices quoted in their bids.

Because of the PPN, Best Buy became the primary customer of Chip Factory, Inc., a computer parts distribution company owned and operated by the Coles. In fact, from June of 2003 through August of 2007, Best Buy accounted for the vast majority of Chip Factory sales. Trial evidence proved, however, that in an attempt to win orders to supply parts to Best Buy, the Coles routinely caused Chip Factory to quote fraudulently low prices in its PPN bids. After winning bids, the Coles also regularly caused Chip Factory to invoice Best Buy, through the assigned third party, at prices in excess of those quoted during the bidding process. As a result, the Coles caused Chip Factory to invoice Best Buy for $41 million more than Chip Factory actually had bid through the PPN program.

In addition, trial evidence showed that Chip Factory often shipped Best Buy used, damaged, or defective parts instead of new ones, as they pledged to do through the PPN program. And when Best Buy returned damaged, defective, or unneeded parts, Chip Factory failed to provide proper credit.

In his plea agreement, Bossany, an employee of Best Buy during the course of the scheme, agreed that he had conspired with the Coles to defraud Best Buy. While employed at Best Buy, Bossany was responsible for managing the purchase of computer parts from outside vendors that participated in the PPN program. In that capacity, he was Best Buy's primary contact with Chip Factory. He provided the Coles with internal Best Buy information, including communication concerning the PPN as well as other vendors. Bossany also hid Chip Factory's pricing practices and deflected issues and suppressed concerns raised about Chip Factory at Best Buy.

Chief Judge Davis concluded that there was no question but that Bossany lied during his testimony in the Coles' trial. As a result, he increased Bossany's sentence based on obstruction of justice and denied Bossany a reduction for acceptance of responsibility, despite Bossany having pled guilty. Bossany did receive somewhat of a reduced sentence, however, based on his assistance to the government in wearing a wire and recording approximately 19 conversations with Russell Cole, conversations which the government played during trial.

In return for assisting in furthering the scheme, Bossany received and accepted bribes from the Coles, including large amounts of cash, checks, and property, including gift cards, a Harley- Davidson motorcycle, and an all-terrain vehicle. In addition, the Coles sent Bossany magazines, compact discs, and DVDs in which cash, checks, and gift cards were hidden. To conceal the scheme, those items were sent to Bossany's home address rather than his office. And, on a number of occasions, Chip Factory employees assisted the Coles in preparing the packages for Bossany.

In addition to defrauding Best Buy, the Coles also evaded federal taxes for 2004 through 2007 and deprived the Internal Revenue Service ("IRS") of its function to collect taxes. They did so by understating the company's gross receipts in a number of ways. For instance, they resold to their suppliers the computer parts that Best Buy had returned. Then, they instructed the suppliers to make payments for the parts to Russell Cole personally instead of to Chip Factory. Upon receipt of the payments, the Coles deposited the checks into an account separate from the company. Between 2004 and 2007, for example, one Chip Factory vendor made checks out to Russell Cole personally that totaled more than $900,000. The Coles omitted that income as well as similar income from their corporate and individual tax returns.

Furthermore, Russell Cole misrepresented on individual and Chip Factory tax returns the sales and profit from an eBay business he ran. Through that business, he sold computer parts, including parts purchased by Chip Factory specifically for Best Buy. After the parts were sold via the Internet, he directed Chip Factory employees to send other products to Best Buy service centers, including parts that were used, damaged, or defective. From 2005 to 2007, Russell Cole understated his net income from the Internet business by more than $1.8 million.

In addition to understating Chip Factory gross receipts in general over a four-year period, the Coles understated the company's gross receipts by more than $3 million for 2006 alone. To accomplish that, the Coles represented to their outside accountant that the value of parts returned by Best Buy during the year had not been noted in the company's books. However, those returns had indeed been recorded. Nonetheless, in late 2007, the Coles filed amended federal individual and corporate returns for 2006, citing the false information. The Coles were motivated to lower their tax liability at that time because Best Buy had recently discovered the bidding fraud and had terminated its relationship with Chip Factory.

The Coles also overstated on Chip Factory tax returns the cost of goods it sold. To that end, they directed company employees to inflate the cost of parts purchased from suppliers and enter false purchase orders into the company's books and records. Abby Cole personally participated in inflating the cost of Chip Factory purchases. Moreover, the Coles paid for a large amount of personal expenses, including credit card debt and a number of luxury purchases, such as highend jewelry and month-long stays at the Bellagio hotel in Las Vegas, with Chip Factory funds. They then classified those expenditures as business expenses on the company's tax returns.


************************************************************************
Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting
www.irsrewards.com
 

Former IRS Agent Roger Anthony Coombs Sentenced for Soliciting and Agreeing to Receive a Bribe

Source- http://minneapolis.fbi.gov/dojpressrel/pressrel10/mp121610.htm

Earlier today in federal court in St. Paul, a tax revenue agent with the Internal Revenue Service ("IRS") was sentenced for soliciting and receiving a $9,700 bribe. United States District Court Judge Paul A. Magnuson sentenced Roger Anthony Coombs, age 41, of Circle Pines, to 33 months in federal prison on one count of soliciting and agreeing to receive a bribe. In imposing the sentence, Judge Magnuson put all federal workers on notice: "I want everyone who draws a federal paycheck to know that if they solicit a bribe, they are going to jail."

Coombs was indicted on June 21, 2010, and pleaded guilty on August 19, 2010. In his plea agreement, he admitted that on May 8, 2010, he solicited a $9,700 bribe from the owners of a small Minnesota business. In exchange for the money, Coombs agreed to report a lower federal tax obligation than was actually owed by the business. Coombs also admitted receiving payments toward the bribe on May 19 and June 2, 2010.

Following today's sentencing, Ralph Boelter, Special Agent in Charge of the FBI's Minneapolis field office, said, "Rooting out public corruption is one the FBI's highest priorities. Corruption committed by government employees or public officials will not be tolerated and will be vigorously investigated. Public corruption erodes public confidence and undermines the strength of our democracy. Like many of our investigations, this case started with a tip from a concerned citizen. We are always grateful for those who come forward to report corruption." The FBI led the investigation in this case.

A law enforcement affidavit filed in the case states that Coombs, who began working for the IRS in June of 2009, routinely audited individuals and entities to determine if accurate reports of tax liabilities had been submitted by them to the federal government. On May 6, 2010, Coombs met with the two owners of a small Minnesota company for that purpose. The meeting was held at the office of the company's accountant, but while the accountant was out of the room, Coombs suggested that he and the owners meet elsewhere, unaccompanied by the accountant. As a result, another meeting was scheduled for May 8.

Because of his concerns about Coombs, one of the business owners secretly recorded the May 8 meeting, during which Coombs reported that the business owed the IRS approximately $60,000. He went on to say, however, he could make the situation more "manageable." He explained he could alter aspects of the audit so the IRS would accept $11,000 if the business owners paid him $9,700 personally in return. A subsequent meeting was then scheduled for May19, at which Coombs was to receive partial payment toward the bribe.

Prior to that meeting, the business owners reported Coombs's actions to authorities. Therefore, on May 19, investigators were present to see Coombs accept $3,000 in payment toward the bribe. After receiving the money, Coombs informed the business owner he had taken care of things at the IRS. The two men then arranged yet another meeting, scheduled for June 2, for payment of the balance of the bribe. On June 2, 2010, after Coombs received the final payment of $6,700, he was arrested without incident.

In addition to the FBI, this case was investigated by the U.S. Treasury Inspector General- Tax Administration. It was prosecuted by Assistant U.S. Attorneys Tracy L. Perzel and Joe Dixon.


************************************************************************
Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting
www.irsrewards.com
 

Andrew Isaac Chance of Clinton was arrested on a four-count indictment charging him with filing a fraudulent multi-billion dollar lien against a government employee and filing false tax returns seeking $900,000 in false refunds

Source- http://www.justice.gov/tax/txdv101450.htm

WASHINGTON - Andrew Isaac Chance of Clinton, Md., was arrested on a four-count indictment charging him with filing a fraudulent multi-billion dollar lien against a government employee and filing false tax returns seeking $900,000 in false refunds, the Justice Department and the Internal Revenue Service (IRS) announced today. The indictment was returned on Dec. 13, 2010, by a federal grand jury sitting in Greenbelt, Md. No trial date has been set.

According to the indictment, Chance filed a false lien in the amount of $1.313 billion against the property of the Assistant U.S. Attorney who had prosecuted him for filing a false claim for a tax refund in 2007. The indictment also alleges that Chance filed three false income tax returns for estates and trusts for Andrew I. Chance Trust, for tax years 2007, 2008 and 2009. Each of these tax returns claimed a tax refund in the amount of $300,000.

In October 2007, Chance was convicted for filing a tax return for "ANDREW CHANCE TRUST" that claimed a tax refund in the amount of $306,753. On Oct. 15, 2007, Chance was sentenced to 27 months in prison. He was released from prison on June 12, 2009, and is currently on supervised release.

An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.

If convicted, Chance faces a maximum of 25 years in prison and a maximum fine of $1 million dollars.


************************************************************************
Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting
www.irsrewards.com

Alchico Grant, Veronica Dale, Laquanta Grant, Isaac Dailey and Leroy Howard, Indicted in Alabama for roles in Tax Fraud and Identity Theft ring

Source- http://www.justice.gov/tax/txdv101451.htm

MONTGOMERY, Ala. - Five people were indicted by a federal grand jury in the Middle District of Alabama on a variety of charges stemming from an identity theft and tax fraud conspiracy, the Department of Justice and the Internal Revenue Service (IRS) announced today. Alchico Grant, Veronica Dale, Laquanta Grant, Isaac Dailey and Leroy Howard, were charged in a 39-count indictment that was returned on Dec. 14, 2010, and unsealed today.

All five defendants were charged with conspiring to defraud the United States by filing false claims. Dale was also charged with 24 counts of filing false tax returns, two counts of theft of government funds and two counts of aggravated identity theft. Additionally, Alchico Grant was charged with four counts of theft of government funds; Dailey was charged with three counts of theft of government funds; and Howard was charged with two counts of theft of government funds.

According to the indictment, the defendants were involved in a conspiracy which spanned almost two years and involved using stolen identities to file tax returns claiming millions of dollars in fraudulent refunds. The indictment alleges that Dale filed false tax returns using others' names and Social Security numbers and deposited the fraudulent refunds into bank accounts that she and her co-conspirators controlled. Dale, Alchico Grant and Laquanta Grant recruited people to set up bank accounts to be used to deposit the tax refunds. Howard and Dailey were two of those who agreed to have their bank accounts used for receiving the fraudulently-obtained refunds. In addition, Alchico Grant attempted to persuade several witnesses to give false information to law enforcement about the scheme. In all, the conspirators defrauded the United States of more than $2 million over the course of the conspiracy.

An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Dale faces a maximum of 154 years in prison, Alchico Grant faces a maximum of 50 years in prison, Dailey faces a maximum of 40 years in prison, Howard faces a maximum of 30 years in prison and Laquanta Grant faces a maximum of 10 years in prison.


************************************************************************
Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting
www.irsrewards.com
 

Justice Department Sues to David Miner from Promoting Alleged Tax Fraud Schemes

Source- http://www.justice.gov/tax/txdv101445.htm

WASHINGTON - The United States has sued an Orlando, Fla., man seeking to bar him from promoting two alleged tax-fraud schemes, the Justice Department announced today.

According to the government complaint in the civil injunction case in U.S. District Court for the Middle District of Florida, David Miner promotes a "decoder" scheme through a website. The government alleges that Miner falsely claims to be able to "decode" and "fix" Internal Revenue Service (IRS) records of his customers' tax accounts so as to block the IRS from collecting the customers' taxes. The complaint states that Miner charges each customer $1,800 for this purported service and claims to have helped more than 2,000 customers stop paying taxes.

The lawsuit also alleges that Miner promotes a "pure trust" abusive tax scheme at another website. According to the complaint, Miner charges customers $2,000 to establish "pure trusts" to evade paying federal income taxes, conceal their assets, and interfere with IRS collection efforts. The government alleges that Miner falsely advises his customers that assets purportedly contributed to the trusts may not be seized by personal creditors, including the IRS.

In the past decade, the Justice Department's Tax Division has obtained injunctions to stop the promotion of tax-fraud schemes and the preparation of fraudulent returns. Information about these cases is available on the Justice Department website.


************************************************************************
Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting
www.irsrewards.com
 

Federal Court Has Permanently Barred Maritza Villanueva from preparing Federal Income Tax Returns for others

Source- http://www.justice.gov/tax/txdv101436.htm

WASHINGTON - A federal court has permanently barred Maritza Villanueva of Irving, Texas, from preparing federal income tax returns for others, the Justice Department announced today. The permanent injunction order, to which Villanueva consented, was entered by Judge Jane J. Boyle of the U.S. District Court for the Northern District of Texas.

The government complaint in the case alleged that Villanueva works for Action E-File Services in Irving, and claims false tax credits and deductions for her customers, including false earned income tax credits. According to the complaint, the Internal Revenue Service estimated that Villanueva's customers underpaid their taxes, or received tax credits to which they were not entitled, in an amount exceeding $3 million.

The court also ordered Villanueva to give government attorneys any lists she possessed identifying individuals for whom she prepared any tax-related documents since Jan. 1, 2007.

Since 2001, the Justice Department's Tax Division has obtained hundreds of injunctions to stop the promotion of tax fraud schemes and the preparation of fraudulent returns. Information about these cases is available on the Justice Department website.


************************************************************************
Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting
www.irsrewards.com
 

Bonnie Helt was Sentenced to 18 Months in Prison for Conspiring to Commit Mortgage Fraud and Obstruction of Justice

Source- http://www.justice.gov/tax/txdv101414.htm

WASHINGTON - Bonnie Helt of Columbus, Ohio, was sentenced to 18 months in prison by U.S. District Court Judge Michael H. Watson in Columbus for conspiring to commit mortgage fraud and obstruction of justice, the Justice Department and Internal Revenue Service (IRS) announced today.

According to court testimony and documents, Helt was the real estate agent for convicted Columbus-area home builder, Thomas Parenteau. Helt conspired with Parenteau to commit bank and wire fraud schemes through which the pair defrauded banks and financial institutions of more than $7 million by falsely inflating the purchase prices of the homes that Parenteau built and sold in exchange for the payment of large undisclosed or disguised kickbacks to the buyers after their purchases. After learning of the IRS investigation into their schemes, Parenteau, Helt and others engaged in a scheme to obstruct justice by destroying documents and lying to federal and local investigators. A jury convicted Parenteau for his role in these crimes in July of this year after a two-month trial. Helt pleaded guilty to these crimes in January of this year.

In addition to the prison term, Judge Watson ordered Helt to serve a five-year term of supervised release after her term of imprisonment, and to pay restitution to the victim financial institutions in an amount to be determined by the court within 90 days. Finally, the court ordered Helt to forfeit to the United States government $124,544, which represented the amount of commissions she earned on the fraudulent real estate deals in which she participated.

Helt's co-conspirators, Marsha K. Parenteau and Pamela A. McCarty, are scheduled to be sentenced for their respective roles in these schemes on January 5, 2011. The sentencing for Mr. Parenteau is not yet scheduled.


************************************************************************
Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting
www.irsrewards.com
 

Ora Mae Adamson Pleads Guilty To Tax Fraud and Identity Theft

Source- http://www.justice.gov/tax/txdv101377.htm

MONTGOMERY, Ala. – Ora Mae Adamson, a resident of Montgomery County, Ala., pleaded guilty to one count of conspiring to defraud the United States and one count of identity theft, the Justice Department and the Internal Revenue Service (IRS) announced today. Adamson pleaded guilty before federal Magistrate Judge Charles S. Coody in the U.S. District Court in Montgomery.

According to charging documents, between March 2009 and September 2009, Adamson conspired with others to defraud the United States by fraudulently obtaining the names and social security numbers of individuals, and filing false tax returns in these individuals’ names without authorization. The tax returns falsely claimed first-time homebuyer’s and fuel tax credits. As a result of Adamson’s scheme, the IRS disbursed a total of 158 false refunds. Adamson caused these refunds to be deposited into bank accounts she and her co-conspirators controlled. In all, the conspiracy defrauded the United States of $621,738.

 Sentencing has not yet been scheduled. Adamson faces a maximum of 25 years in prison, three years of supervised release, restitution and a maximum fine of $500,000 or twice the loss resulting from her offenses.


************************************************************************
Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting
www.irsrewards.com
 

Pharmacist Thomas K. Frye and his wife Kathy M. Frye Indicted on Tax Fraud Charges

Source- http://www.justice.gov/tax/txdv101380.htm

MONTGOMERY, Ala. - A husband and wife were indicted by a federal grand jury for conspiring to defraud the United States, tax evasion, and filing a false claim for tax refund, the Justice Department and the Internal Revenue Service (IRS) announced today. The indictment against Thomas K. Frye and Kathy M. Frye, residents of Andalusia, Ala., was returned on Nov. 17, 2010, and unsealed yesterday. The grand jury also charged Thomas Frye with passing fictitious financial instruments.

According to the indictment, beginning in 1999 the Fryes conspired to defraud the United States by submitting IRS forms to their employers that falsely claimed they were exempt from federal income tax. The Fryes also filed false federal income tax returns that understated their income. In late 2008, the Fryes filed a false refund claim with the IRS in the amount of $317,990. When the IRS attempted to collect the back taxes owed by the Fryes, Thomas Frye submitted false financial instruments to the IRS to purportedly pay their taxes. Mr. Frye represented to the IRS that one of the false instruments had a value of $100 billion.

An indictment merely alleges that crimes have been committed, and the Fryes are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Thomas Frye faces a maximum prison sentence of 105 years and Kathy Frye faces a maximum prison sentence of 30 years.


************************************************************************
Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting
www.irsrewards.com
 

Bruce Gregory Harrison III, Charged With Failing to Pay more than $15 Million in Payroll Taxes for Temporary Staffing Companies

Source- http://www.justice.gov/tax/txdv101368.htm

WASHINGTON – A federal grand jury in Greensboro, N.C., Monday returned a 63-count indictment against businessman Bruce Gregory Harrison III, the Justice Department and the Internal Revenue Service (IRS) announced today.

According to the indictment, Harrison, a resident of Greensboro, did business under various corporate names including U.S.A. Staffing. He owned or controlled temporary staffing companies operating in at least nine states. Harrison’s staffing companies were headquartered in Guilford County, N.C., and contracted with client businesses to provide temporary workers. Harrison’s companies promised to assume full responsibility for the payment of wages and the withholding and transmitting of taxes to the IRS for those employees. Instead, according to the indictment, Harrison failed to account for and pay over in excess of $15 million in federal payroll taxes for the employees of those companies. 

Harrison is also alleged to have corruptly endeavored to obstruct the IRS by means of false statements to IRS revenue officers. Additionally, he allegedly used company funds to purchase personal residences, to buy a yacht and to finance movies. Harrison is also charged with failing to timely file his own income tax returns for 2004, 2005 and 2006.

An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.

Harrison was arrested on Nov. 10, 2010, by special agents of IRS Criminal Investigation in connection to an earlier criminal complaint.


************************************************************************
Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting
www.irsrewards.com
 

Justice Department ask Federal Court to Shut Down Colorado Tax Retur Preparer George Thomas Gaines

Source- http://www.justice.gov/tax/txdv101356.htm

WASHINGTON - The United States has filed a complaint in federal court in Colorado against George Thomas Gaines of Aurora, Colo, the Justice Department announced today. The government’s lawsuit seeks to bar Gaines and his tax preparation companies from preparing federal tax returns for others.

According to the government’s complaint in the case, Gaines, through his companies, G&G Tax Service and American Benefits, prepares federal income tax returns for customers that claim losses for non-existent businesses and inflated or fabricated deductions in order to unlawfully understate tax liabilities or claim the earned income tax credit.

According to the complaint, the Internal Revenue Service has identified 210 returns prepared by Gaines between 2004 and 2007 that contain understatements of customers’ tax liabilities, out of 218 returns audited. The government alleges that these understatements have resulted in a tax harm of more than $900,000, and the total lost revenue could be as much as nearly $4 million.

This civil injunction action is part of the Justice Department’s nationwide crackdown on tax scams, including the preparation of fraudulent federal tax returns. Since 2001, the Justice Department has obtained hundreds of injunctions to stop the promotion of tax fraud schemes and the preparation of fraudulent returns.


************************************************************************
Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting
www.irsrewards.com
 

Federal Court Permanently Bars Robert Knupp from Preparing Federal Tax Returns for Others

Source- http://www.justice.gov/tax/txdv101336.htm

WASHINGTON - A federal court has permanently barred Robert Knupp of Marietta, Ga., from preparing federal income tax returns for others, the Justice Department announced today. The civil injunction order, signed by Chief Judge Julie E. Carnes of the U.S. District Court for the Northern District of Georgia, found that Knupp promotes a tax defier scheme that claims large fraudulent tax refunds for customers.

The court found that Knupp repeatedly prepared federal income tax returns claiming "huge and fraudulent" refunds for customers, "in amounts sometimes in the millions of dollars," based on a tax fraud scheme known as the "redemption" or "Form 1099-OID" scheme. It further found that Knupp prepared and filed 58 income tax returns for customers in 2009 claiming more than $11 million in fraudulent refunds. The lawsuit against Knupp was one of seven other lawsuits filed across the country in October 2009, all of which sought permanent injunctions against tax preparers who allegedly promote the redemption scheme.

The Internal Revenue Service's (IRS) list of the Dirty Dozen tax scams for 2010 includes schemes involving the filing of false or misleading forms such as false OID forms as used in this case.


************************************************************************
Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting
www.irsrewards.com
 

Bradley C. Brennecke and Bruce A. Mrusek, Sentenced to Jail for Tax Evasion and Conspiracy

Source- http://www.justice.gov/tax/txdv101337.htm

WASHINGTON - Bradley C. Brennecke, a resident of Pleasant Plain, Ohio, and Bruce A. Mrusek, a resident of Maineville, Ohio, were each sentenced to 12 months in jail following their January 2010 guilty pleas to conspiracy and tax evasion charges, the Justice Department and Internal Revenue Service (IRS) announced today. Cincinnati federal District Court judge Michael R. Barrett imposed the sentences.

Mrusek and Brennecke, who are both dentists, were indicted in July 2009 and charged with tax evasion, conspiracy to defraud the IRS and passing fictitious instruments. Mrusek and Brennecke were scheduled to begin trial on January 11, 2010. However, both defendants failed to appear in court. Both defendants were subsequently arrested. Facing trial on multiple counts, each defendant elected to plead guilty to conspiracy and tax evasion the following day.

According to court documents and testimony, Brennecke, who operated Goshen Family Dentistry Ltd. in Goshen, Ohio, failed to pay taxes for 1998, 2002, 2003 and 2004. Additionally, the indictment alleges that Brennecke transferred title of his house to his wife to conceal it from the IRS, sent the government bogus documents that purported to pay his tax liabilities and filed false tax returns.

According to court documents and testimony, Mrusek, who owned and operated Wilmington Dental Management Services in Wilmington, Ohio, evaded his 2002, 2003 and 2004 taxes by transferring his assets to his wife's name, sending bogus documents to the IRS that purported to pay his tax liabilities, using a trust to pay personal expenses and filing false personal tax returns. Additionally, the indictment alleges that Mrusek filed false tax returns for Wilmington Dental Management Services by reporting deductions that the business did not incur.

According to court documents and testimony, Brennecke and Mrusek conspired to defraud the IRS beginning around the time that the IRS began civil audits of each of them. Brennecke and Mrusek assisted each other in the mailing of various fraudulent documents to the IRS and U.S. Treasury Department. Brennecke assisted Mrusek in the transfer of assets out of Mrusek's name. The judge found that the total attempted tax harm associated with each defendants' conduct was over $1 million.

According to the indictment, Brennecke and Mrusek submitted fictitious obligations labeled "Secured Promissory Notes" to the U.S. Department of the Treasury as purported payment of their tax debts. Each of these documents purported to be in the amount of $4.8 billion.

Each was also sentenced to three years supervised release following their release from prison.


************************************************************************
Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting
www.irsrewards.com
 

California UBS Client Bernard Goldstein Indicted for Hiding Assets in Secret Swiss Bank Accounts

Source- http://www.justice.gov/tax/txdv101327.htm

WASHINGTON - Bernard Goldstein of Carlsbad, Calif., was indicted by a federal grand jury for conspiracy to defraud the Internal Revenue Service (IRS), filing false tax returns and failing to file Reports of Foreign Bank or Financial Accounts (FBARs), the Justice Department and IRS announced today. All the charges are related to Goldstein's hiding hundreds of thousands of dollars of assets in several Swiss bank accounts held at UBS AG. The indictment was returned Nov. 16, 2010, and unsealed today. Goldstein was not present in court today and, according to the indictment, fled the United States shortly after UBS entered into a Deferred Prosecution Agreement with the United States government.

According to the indictment filed in San Diego federal court, Goldstein, a Canadian citizen and lawful permanent resident of the U.S., kept assets in bank accounts with UBS from at least 1992 through at least October 2008. In 1992 he opened a UBS bank account in his own name that held assets totaling more than $2 million at the end of 2000. In 2000 Goldstein, with the assistance of UBS and other co-conspirators, opened another UBS account under the name of a sham Panamanian corporation named Kasler Management Corp. Goldstein then transferred funds from the UBS account in his own name to the UBS account held in the name of Kasler. Goldstein also maintained an account at UBS Cayman Islands Ltd. until 2002, when he transferred assets from the Cayman Islands account to the Kasler account. By the end of 2003, Goldstein's UBS accounts held assets totaling more than $2.5 million, almost all of which were in the Kasler account. Further, in 2004, Goldstein transferred funds to an account at another large global Swiss bank headquartered in Zurich, also held in the name of Kasler.

Goldstein, the owner and operator of MG Export-Import Inc., a California-based company that exported oil pipeline products to Russia, concealed from his tax return preparer the existence of these numerous offshore accounts. Further, he failed to report his ownership of these accounts and failed to report any income earned in these accounts on his tax returns. He also failed to file FBARs relating to the accounts.

A U.S. taxpayer who has an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 is required to disclose the existence of the account on Schedule B, Part III of his or her individual income tax return. A U.S. taxpayer must also disclose the existence of the account by filing an FBAR with the U.S. Treasury.

To further conceal his ownership of the Kasler account, Goldstein's co-conspirators signed IRS forms and UBS's equivalent forms falsely stating that his sham corporation was the owner of his account, when in reality, Goldstein was the owner. Goldstein and his co-conspirators also withdrew cash and transferred assets from and between Goldstein's UBS accounts in order to conceal these assets from the IRS, including the withdrawal of cash from one account after UBS disclosed that it was under criminal investigation by the U.S. government.

Goldstein is charged with one count of conspiring to defraud the IRS, which carries a maximum penalty of five years in prison; five counts of filing false federal income tax returns, each of which carries a maximum penalty of three years in prison; and three counts of willful failure to file an FBAR, each of which carries a maximum penalty of five years in prison.

An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.

"The IRS and Justice Department continue to work cooperatively to combat international tax evasion," said IRS Deputy Commissioner Steven T. Miller. "Individuals who hide income and assets offshore, and those banks and advisors who help them cheat, will find themselves increasingly at risk."

In February 2009, UBS entered into a deferred prosecution agreement under which the bank admitted to helping U.S. taxpayers hide accounts from the IRS. As part of their agreement, UBS provided the U.S. government with the identities of, and account information for, certain U.S. customers of UBS's cross-border business, including Goldstein.


************************************************************************
Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting
www.irsrewards.com