Tuesday, July 31, 2012

Rafael Duran Garcia Pleads Guilty In Fraudulent Tax Refund Scheme



FRESNO, Calif. — Planada resident Rafael Duran Garcia, 26, pleaded guilty today to two counts of mail fraud and two counts of filing false claims for federal tax refunds, United States Attorney Benjamin B. Wagner announced.

According to the guilty plea, from September 2007 to April 2009, Garcia caused 121 false federal income tax returns to be submitted to the Internal Revenue Service (IRS) in the names of third parties in a scheme to obtain tax refund checks. The tax returns were submitted to the IRS with W-2 Forms claiming false wage and withholding information, thereby making fraudulent claims for over $186,000 in federal tax refunds. The IRS suffered an actual loss of approximately $29,840 due to the scheme.




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Monday, July 30, 2012

Goher Yaqoob a Distributor of Prepaid Phone Cards, Pleads Guilty to Tax Evasion


Source- http://www.justice.gov/tax/2012/txdv12942.htm

WASHINGTON – Goher Yaqoob, a resident of Roslyn Heights, N.Y., pleaded guilty today in U.S. District Court in the Eastern District of New York to tax evasion, the Justice Department and Internal Revenue Service (IRS) announced.

According to court records, Yaqoob, who sold prepaid phone cards through a distributorship business he owned, admitted that he filed a false individual income tax return and attempted to evade his income taxes for tax year 2002 by underreporting his income. Yaqoob admitted that his criminal conduct caused a tax loss of at least $147,323 between calendar years 2000 and 2003.

Yaqoob faces a potential maximum sentence of five years in prison and a fine of up to $250,000. U.S. District Judge John Gleeson, who is presiding over the matter, set a sentencing date of Dec. 7, 2012.




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Sunday, July 29, 2012

Adean Wells Pleads Guilty to Filing False Income Tax Returns


Source- http://www.justice.gov/tax/2012/txdv12939.htm

WASHINGTON – Adean Wells, of Silver Spring, Md., pleaded guilty today to filing two false individual income tax returns before Senior U.S. District Judge Thomas Hogan in the U.S. District Court for the District of Columbia, the Justice Department and the Internal Revenue Service (IRS) announced.

Adean Wells pleaded guilty to filing false individual income tax returns (IRS Forms 1040) for tax years 2006 and 2007. According to admissions made in court, Wells, a retired federal employee, failed to report approximately $900,000 in consulting income she earned during the prosecution years. Judge Hogan scheduled the sentencing hearing for Dec. 5, 2012. Wells faces a maximum potential sentence of three years in prison, a fine of up to $250,000 for each count, and could be ordered to pay restitution to the IRS.




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Saturday, July 28, 2012

James E. Moss and Avada L. Jenkins Were Both Sentenced To Jail for Tax Conspiracy


Source- http://www.justice.gov/tax/2012/txdv12937.htm

WASHINGTON – James E. Moss and Avada L. Jenkins were both sentenced yesterday to 160 months and 41 months in prison respectively for their involvement in a fraudulent tax return perpetration scheme, the Justice Department and the Internal Revenue Service (IRS) announced. U.S. District Judge Mark E. Fuller of the Middle District of Alabama also ordered Moss and Jenkins to pay over $120,000 in restitution, jointly and severally, to the IRS.

On Nov. 2, 2011, a jury found both Moss and Jenkins guilty of conspiracy and aiding and assisting the preparation of false tax returns relating to a tax preparation business owned by Moss named “Flash Tax” in Montgomery, Ala. The evidence at trial proved that both Moss and Jenkins, an employee of Flash Tax, prepared false tax returns for customers that fraudulently inflated the amount of refunds due to the customers. During the sentencing, Judge Fuller concluded the overall intended tax loss associated with the scheme was in excess of $7 million dollars.

Three other employees of Flash Tax had been sentenced previously for their roles in preparing false income tax returns. Chiquita Broadnax and Lutoyua Thompson were each sentenced to 18 months in prison, and Melinda Lambert was sentenced to 6 months in prison and 6 months home confinement.




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Friday, July 27, 2012

Ernst Pierre Sentenced to Federal Prison for Stolen Identity Refund Fraud


Source- http://www.justice.gov/tax/2012/txdv12904.htm

WASHINGTON – Ernst Pierre, a Port St. Lucie, Fla., tax preparer, was sentenced today to 51 months in federal prison for wire fraud and aggravated identity theft, the Justice Department and Internal Revenue Service – Criminal Investigation (IRS-CI) announced. Pierre was charged with a scheme to file false federal income tax returns using stolen identity information. Pierre was also ordered to pay over $266,000 in restitution to the IRS.

According to the indictment and Pierre’s admissions as part of his guilty plea, from October 2009 through May 2011, Pierre filed false tax returns for clients of Tax Max, a Port St. Lucie tax return preparation business he owned and operated. Pierre obtained the names and Social Security numbers of relatives of clients for whom he had prepared and submitted federal income tax returns and then fraudulently used those names and Social Security numbers as “dependents” on other client tax returns and on his own tax return. Pierre used these dependents to fraudulently inflate tax refunds.




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Thursday, July 26, 2012

Las Vegas Lawyer Charles C. LoBello Pleads Guilty To Tax Evasion


Source- http://www.justice.gov/tax/2012/txdv12907.htm

WASHINGTON – Charles C. LoBello, a Nevada-licensed attorney who practices business and personal injury law in Las Vegas, pleaded guilty in federal court to one count of tax evasion, the Justice Department and Internal Revenue Service (IRS) announced today. U.S. District Court Judge James Mahan presided over the plea hearing.

On June 22, 2010, a federal grand jury returned an indictment against LoBello, charging him with five counts of tax evasion and five counts of filing false personal income tax returns, for the tax years 2001 through 2005.

According to court documents, LoBello concealed over $900,000 in income from the United States, intentionally gave incomplete information to his bookkeeper and tax return preparer, and used personal checking accounts to hide large checks he received as legal fees. In the plea agreement, LoBello admitted that for the years 2001 through 2005 he owed an additional $260,625 in income taxes.

Sentencing is scheduled for Oct. 23, 2012. LoBello faces a maximum potential sentence of five years in prison and a fine of up to $250,000. According to the plea agreement, LoBello has agreed to pay restitution in the amount of $260,625 to the IRS, which represents his unpaid personal income tax liability for 2001 through 2005. He also agreed to pay all applicable interest and penalties on that tax liability.




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Wednesday, July 25, 2012

Eddye L. Lovely Was Sentenced to 57 Months in Federal Prison for Prepering False Tax Returns


Source- http://www.justice.gov/tax/2012/txdv12915.htm

WASHINGTON – Eddye L. Lovely, a tax return preparer from Tomball, Texas, was sentenced today to 57 months in federal prison, the Justice Department and Internal Revenue Service (IRS) announced. Lovely appeared before U.S. District Judge Nancy F. Atlas in Houston.

On April 6, 2011, Lovely was indicted on 14 counts of aiding and assisting in the preparation of false tax returns. On Sept. 28, 2011, Lovely was charged, pursuant to a superseding indictment, with 16 counts of aiding and assisting in the preparation of false tax returns comprising the original 14 counts plus two additional counts. According to the superseding indictment, the court had released Lovely on bond pending trial and ordered him not to prepare any tax returns or commit additional crimes. While on pre-trial release, Lovely aided and assisted in the preparation of materially false 2010 tax returns for two additional clients. He pleaded guilty on Dec. 12, 2011 to three of the 16 counts charged in the superseding indictment. Following a pretrial hearing, the court revoked Lovely’s bond and ordered him detained.

According to the superseding indictment and plea agreement, Lovely owned and operated “The Tax Master,” a tax return business located in Harris County, Texas. Lovely prepared tax returns that contained fabricated Schedule C losses for businesses that the taxpayers did not own or operate, as well as false or inflated Schedule A deductions for charitable contributions and other expenses.

The court found that the tax loss associated with the three charges to which Lovely pleaded guilty as well as all relevant conduct associated with this case was more than $1 million.




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Tuesday, July 24, 2012

William B. Clayton Was Arrested and Charged With Tax Obstruction and Conversion of Goverment Property


Source- http://www.justice.gov/tax/2012/txdv12914.htm

WASHINGTON – William B. Clayton, a residential builder formerly of Corolla, N.C., was arrested yesterday on charges of obstructing the tax laws and converting government property, the Justice Department and Internal Revenue Service (IRS) announced. Clayton had his initial appearance today before U.S. Magistrate Judge William A. Webb in the Eastern District of North Carolina.

Clayton was charged in a two-count indictment returned by a federal grand jury on June 19, 2012, in the Eastern District of North Carolina and unsealed today. The indictment charges Clayton with one count of corruptly endeavoring to obstruct and impede the due administration of the Internal Revenue laws and one count of knowingly converting and disposing of U.S. government property.

According to the indictment, Clayton failed to file federal income tax returns over a six-year period, resulting in the assessment of taxes and penalties and the initiation of collection proceedings by the IRS. Between May 2007 and August 2010, Clayton took steps to obstruct the IRS’s efforts to collect his unpaid tax liabilities, such as concealing property from the IRS and destroying property owned by the IRS but previously built and owned by Clayton. According to the charging instrument, in an effort to pay down Clayton’s tax liabilities, the IRS scheduled a public auction of Clayton’s former property. In the days leading up to the auction, Clayton committed, or caused the commission of, various acts of destruction and demolition at the Corolla property, including destroying an outdoor pool deck and pool house, forcibly removing a guest house from the property and transporting it to a non-consenting neighbor’s property, and forcibly removing cabinets, counter tops, a kitchen island, sinks, toilets and light fixtures.

If convicted, Clayton could face a maximum potential sentence of three years in prison and a fine of $250,000 on the tax obstruction charge, and 10 years in prison and a fine of $250,000 on the conversion of government property charge.




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Monday, July 23, 2012

Former Florida State Senator Muriel Amanda Dawson was Sentenced for Tax Evasion


Source- http://www.fbi.gov/miami/press-releases/2012/former-florida-state-senator-sentenced-for-tax-evasion

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida; José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); and Jeffrey C. Mazanec, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Muriel Amanda Dawson, 55, formerly of Broward County, was sentenced today to six months in prison, to be followed by two years of supervised release. Dawson pled guilty on April 23, 2012, to charges of felony tax evasion and failing to file a federal income tax return (counts two and five).

During her guilty plea hearing, Dawson admitted that in calendar years 2004 and 2005, she received substantial income from third parties. Nonetheless, Dawson failed to file income tax returns with the Internal Revenue Service during that period. Dawson also admitted that she failed to file federal personal income tax returns from 2006 through 2008.

At all relevant times, Dawson was a Florida State Senator representing portions of Broward and Palm Beach Counties. In particular, during three years in which Dawson served as a state senator, Dawson failed to file any federal income tax returns and failed to pay at least $29,000 in federal income taxes, excluding penalties and interest.




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Sunday, July 22, 2012

James Clark was Sentenced to Over Four Years for Tax Evasion, Bank Fraud


Source- http://www.fbi.gov/kansascity/press-releases/2012/kansas-city-businessman-sentenced-to-over-four-years-for-tax-evasion-bank-fraud

KANSAS CITY, KS—A Kansas City-area businessman has been sentenced to 51 months in federal prison for tax evasion and bank fraud, U.S. Attorney Barry Grissom said today. A federal judge also ordered the man to pay more than $1.3 million in restitution.

James Clark, 53, Overland Park, Kansas, a former owner of the Kansas City Knights basketball team, pleaded guilty to one count of tax fraud and one count of bank fraud. Clark admitted that he withheld payroll taxes from employees of his company, SWISH Holding Corp., while failing to pay more than $502,000 to the Internal Revenue Service. He diverted the funds and used them for his own purposes, including the operation of the basketball franchise.

Clark also admitted submitting false information to UMB Bank when he applied for a line of credit. He overstated the income, profits, and assets of SWISH. He gave the bank purported copies of federal income tax returns for SWISH for 2002 and 2003. The returns had not actually been filed with the IRS and falsely overstated SWISH’s income. Additionally, as a personal guarantor of the loan, Clark gave the bank statements that overstated the value of the Kansas City Knights and misrepresented that he had an ownership interest in the American Basketball Association.




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Saturday, July 21, 2012

Michael R. Elliott, Former Chief Financial Officer of Caremerica Inc., Pleaded Guilty to Tax Fraud Conspiracy


Source- http://www.justice.gov/opa/pr/2012/July/12-tax-884.html

Michael R. Elliott, former chief financial officer of Caremerica Inc., pleaded guilty today to conspiring to defraud the Internal Revenue Service (IRS), the Justice Department and IRS announced.

On Nov. 15, 2011, a grand jury sitting in Raleigh, N.C., returned an indictment charging Elliott with the following tax offenses: one count of conspiring to defraud the IRS, 25 counts of failing to pay over employment taxes, one count of filing a false tax return, and one count of obstructing the due administration of the tax laws.

According to the charging document, Elliott co-owned and operated a chain of assisted living facilities (ALFs) in North Carolina. The ALFs were managed by Caremerica Inc., a company based in Leland, N.C., that Elliott also partly owned and operated. Elliott was the Chief Financial Officer for Caremerica, the Caremerica ALFs, and other related companies (Caremerica companies). As a corporate officer, Elliott was responsible for ensuring that the Caremerica companies collected, reported, and paid over federal employment taxes to the IRS. However, with Elliott as the chief financial officer, the Caremerica companies accrued more than $4.5 million in employment tax liabilities between approximately 2003 and 2006. Elliott failed to comply with his employment tax obligations by filing, and causing to be filed, false IRS forms and failing to pay the employment taxes due.

The indictment further alleges that in 2003, Elliott acquired partial ownership of Partners Pharmacy Services Inc. (PPS), which provided prescription drug and related services to the Caremerica ALFs. In March 2005, Elliott sold PPS to a subsidiary of Omnicare Inc. At the closing, Elliott received $1.4 million, which he directed to be deposited into a bank account in someone else’s name.




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Friday, July 20, 2012

Dennis Luverne Desender was Sentenced for Securities Fraud and Tax Evasion



Source- http://www.fbi.gov/minneapolis/press-releases/2012/former-cfo-at-bixby-energy-sentenced-for-securities-fraud-and-tax-evasion


MINNEAPOLIS—Earlier today in federal court in St. Paul, the former acting chief financial officer for Bixby Energy Systems Inc. was sentenced for lying to investors to get them to commit large sums of money to the business and for failing to file federal tax returns and reporting his income for three years, which resulted in a tax loss for the Internal Revenue Service of $825,866.
United States District Court Judge Susan Richard Nelson sentenced Dennis Luverne Desender, age 65, to 97 months on one count of securities fraud and one count of tax evasion. On September 14, 2011, Desender was charged and pleaded guilty to securities fraud. On February 23, 2011, he was charged and pleaded guilty to tax evasion.
In his plea agreement, Desender admitted that from January 2010 through May 2011, he and others used manipulative and deceptive practices in an effort to sell securities. During that time, Desender was a consultant for Bixby Energy but had previously been the company’s chief financial officer in charge of raising funds for Bixby projects, including a coal gasification energy system. Desender also admitted soliciting unqualified investors to invest in the company. In exchange for investment funds, investors were sold Bixby securities.
While some investment money was used by Bixby, Desender spent a significant portion of the funds on salaries and commissions for himself and others. Desender routinely provided false information to investors to induce them into remaining financially involved with Bixby and to potential investors to entice them into initiating investments. Among other things, Desender concealed information regarding the coal gasification project, telling investors and potential investors that it was ready for market, when, in fact, it was not. Desender was responsible for approximately $4.3 million in investor losses.
Desender also admitted that he failed to file tax returns for tax years 2005 to 2008. In addition, he admitted that on October 17, 2005, he filed a false Form 1040 tax return for the tax year 2004, failing to report gross receipts of $31,878 and falsifying $314,885 in business deductions relative to his Blooming Prairie, Minnesota, financial consulting business.
As a result of the criminal investigation against him, Desender already has filed the appropriate tax returns and intends to file an amended 2004 return.



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Thursday, July 19, 2012

James Clark was Sentenced to Over Four Years for Tax Evasion, Bank Fraud


Source- http://www.fbi.gov/kansascity/press-releases/2012/kansas-city-businessman-sentenced-to-over-four-years-for-tax-evasion-bank-fraud

KANSAS CITY, KS—A Kansas City-area businessman has been sentenced to 51 months in federal prison for tax evasion and bank fraud, U.S. Attorney Barry Grissom said today. A federal judge also ordered the man to pay more than $1.3 million in restitution.

James Clark, 53, Overland Park, Kansas, a former owner of the Kansas City Knights basketball team, pleaded guilty to one count of tax fraud and one count of bank fraud. Clark admitted that he withheld payroll taxes from employees of his company, SWISH Holding Corp., while failing to pay more than $502,000 to the Internal Revenue Service. He diverted the funds and used them for his own purposes, including the operation of the basketball franchise.

Clark also admitted submitting false information to UMB Bank when he applied for a line of credit. He overstated the income, profits, and assets of SWISH. He gave the bank purported copies of federal income tax returns for SWISH for 2002 and 2003. The returns had not actually been filed with the IRS and falsely overstated SWISH’s income. Additionally, as a personal guarantor of the loan, Clark gave the bank statements that overstated the value of the Kansas City Knights and misrepresented that he had an ownership interest in the American Basketball Association.




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Wednesday, July 18, 2012

James O. Molen was Arraigned For Recording False Liens And Other Actions In Defiance Of Tax Laws



SACRAMENTO, Calif. — James O. Molen, 68, of Chico, was arraigned today on an indictment charging him with recording false liens to retaliate against federal officers, contempt of court, and interference with tax administration, United States Attorney Benjamin B. Wagner announced. Molen pleaded not guilty to the charges and was detained pending further proceedings. His next court date is set for July 17, 2012.

According to court documents, there have been three separate civil cases between the United States and Molen since 2003 concerning his noncompliance with his tax obligations, frivolous tax arguments, and history of filing false liens against federal judges and employees of the Executive Branch. The case numbers are 2:03-cv-1531 DFL GGH, 2:06-cv-614 LKK-KJM, and 2:10-cv-2591 MCE-KJN. The indictment alleges that Molen continued in his defiance of tax laws and again recorded false liens against two different federal employees.




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Tuesday, July 17, 2012

Mark Bagdasarian and Ryan Bagdasarian were Charged With Additional Counts Of Money Laundering



FRESNO, Calif. — Buds 4 Life owners Mark Bagdasarian, 53, and his son, Ryan Bagdasarian, 24, both of Clovis, were arraigned today on a superseding indictment, United States Attorney Benjamin B. Wagner announced. Both pleaded not guilty to the charges.

The superseding indictment charges Mark Bagdasarian with eight counts of money laundering. The charges are in addition to the original four-count indictment on October 13, 2012 that charged them with conspiring to cultivate and distribute marijuana and possessing marijuana with the intent to distribute it. Mark Bagdasarian was also charged with cultivating marijuana. The next court date for Mark and Ryan Bagdasarian is August 20, 2012.

According to court documents, between April 2010 and October 2011, the Badgasarians conspired to distribute marijuana through the Buds 4 Life marijuana stores they owned and operated. Mark Bagdasarian was also charged with growing marijuana for the stores. The superseding indictment alleges that Mark Bagdasarian laundered proceeds from the business through an ATM installed in the business and by purchasing property in the name of two of his children and two business partner’s children with cash.




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Monday, July 16, 2012

Jeffrey Charles Charged With One Count of Conspiracy and Three Counts of Aiding and Assisting in the Preparation of False Tax Returns


Source- http://www.justice.gov/tax/2012/txdv12860.htm

WASHINGTON – A Newport News, Va., federal grand jury has indicted Jeffrey Charles for conspiring with his daughter and son-in-law to defraud the United States, the Justice Department and the Internal Revenue Service (IRS) announced today. Charles is charged with one count of conspiracy, three counts of aiding and assisting in the preparation of false tax returns and one count of filing a false tax return. The court has not yet set a trial date.

According to the indictment, Charles conspired with his daughter and son-in-law to impair and impede the IRS in ascertaining, computing, assessing and collecting federal income taxes. The indictment also alleges that Charles aided and assisted in the preparation of three false tax returns in his daughter’s name for tax years 2000, 2001 and 2005, and attached false documents to each tax return. As alleged in the indictment, Charles also filed a false tax return in his own name for tax year 2006 in which he allegedly falsely reported earning $0.00 income.

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, Charles faces a maximum of 17 years in federal prison and a maximum fine of $1.25 million.




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Sunday, July 15, 2012

John Kieran Hynes Charged With Tax Fraud and Filing False Tax Returns


Source- http://www.justice.gov/usao/can/news/2012/2012_06_22_hynes.charged.press.html

OAKLAND, Calif. – A former resident of San Rafael, Calif., was charged by a federal grand jury in San Francisco yesterday with filing false tax returns, United States Attorney Melinda Haag and IRS-CI Special Agent in Charge Marcus Williams, announced.

According to the indictment, for the 2005, 2006, 2007, and 2008 tax years, John Kieran Hynes willfully subscribed to U.S. Individual Income Tax Returns that he did not believe to be true and correct. The defendant allegedly reported gross receipts from Newtown Construction in the amounts of $2,629,100, $2,286,533, $2,675,039, and $2,606,146. Hynes allegedly knew the gross receipts from his construction business were substantially in excess of the amounts reported on those returns.

The maximum statutory penalty for each count of making and subscribing to a false income tax return, in violation of Title 26, U.S.C § 7206(1) is three years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. sentencing guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. §3553.




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Friday, July 13, 2012

Sentenced for Role in Identity Theft Tax Fraud Scheme Involving U.S. Marine Victims


Source-  http://www.fbi.gov/miami/press-releases/2012/broward-woman-sentenced-for-role-in-identity-theft-tax-fraud-scheme-involving-u.s.-marine-victims 

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida; Jeffrey C. Mazanec, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, announced that Dorothy Boulin, 29, was sentenced today to 70 months in prison, to be followed by three years of supervised release, in connection with an identity theft tax fraud scheme. Boulin pled guilty on April 19, 2012 to one count of wire fraud and one count of aggravated identity theft.

According to court documents, sometime prior to January 2012, the defendant received a list of military personnel (United States Marines) containing their names and Social Security numbers to be used for identity theft tax fraud purposes.

On January 17, 2012, the defendant, from a computer in her residence in Broward County, caused six fraudulent tax returns to be submitted online. Five of these returns were submitted without the authorization of the individuals whose Social Security numbers appear on the returns. These five returns sought approximately $21,301 in fraudulent refunds. Several of these victims were U.S. Marines.

On January 19, 2012, the defendant caused another eight fraudulent tax returns to be submitted online. Seven of these returns were submitted without the authorization of the individuals whose social security numbers appear on the returns. These seven returns sought approximately $32,627 in fraudulent refunds. Several of these victims were U.S. Marines.




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Thursday, July 12, 2012

Carmine C. Inteso, Jr., Returns to United States to Face Federal Tax Charges in New Jersey


Source-  http://www.fbi.gov/newark/press-releases/2012/indicted-former-mayor-of-toms-river-returns-to-united-states-to-face-federal-tax-charges-in-new-jersey 

NEWARK—Carmine C. Inteso, Jr., the former mayor of the Township of Toms River, New Jersey, was arrested late last night on tax evasion charges by IRS–Criminal Investigation and FBI special agents upon his return to the United States from Afghanistan, where he had been working as a contractor, U.S. Attorney Paul J. Fishman announced.

A six-count indictment—returned by a Newark federal grand jury on November 10, 2011, and unsealed June 25, 2012—charges Inteso, 46, of Toms River, New Jersey, with three counts of federal personal income tax evasion and three counts of failing to file federal personal income tax returns for calendar years 2006, 2007, and 2008.

Inteso allegedly took a job in Afghanistan after learning he was the target of the tax investigation and, after returning to the United States last night, was taken into custody at New York’s John F. Kennedy International airport. Inteso appeared this afternoon in Newark federal court before U.S. Magistrate Judge Mark Falk and was released on a $200,000 bond. The case has been assigned to U.S. District Judge Joel A. Pisano in Trenton, before whom Inteso will be arraigned on a date to be determined.

According to the indictment:

From 2002 through 2007, Inteso held the positions of township committee member, mayor, deputy mayor, and councilman for the township of Toms River, formerly known as Dover Township.

Beginning in 2005 and continuing through 2008, Inteso accepted hundreds of thousands of dollars in payments from an insurance broker based in Towson, Maryland, whose companies provided insurance brokerage services for New Jersey municipal entities—including the Brick Township Board of Education and the Township of Toms River. Inteso directed the insurance broker to make the payments to a company Inteso controlled and that had ceased operating by 2007.

Inteso used the funds to pay for his personal expenses and withdrew significant amounts of cash. Despite receiving approximately $291,000 in income from the insurance broker during calendar years 2006, 2007, and 2008, Inteso failed to file personal income taxes for those years.

Each of the three tax evasion counts carries a maximum potential penalty of five years in prison and a $250,000 fine. Each of the three failure to file counts carries a maximum potential penalty of one year in prison and a $100,000 fine.




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Wednesday, July 11, 2012

David Porath Pleads Guilty to Million-Dollar Bid-Rigging and Fraud Conspiracies at New York City Hospital


Source-  http://www.fbi.gov/newyork/press-releases/2012/owner-of-insulation-service-company-pleads-guilty-to-million-dollar-bid-rigging-and-fraud-conspiracies-at-new-york-city-hospital 

WASHINGTON—The owner of a former New York City insulation service company pleaded guilty today to a three-count indictment charging him with conspiring to rig bids on contracts for re-insulation services to New York Presbyterian Hospital (NYPH), conspiring to defraud the Internal Revenue Service (IRS), and filing a false tax return, the Department of Justice announced.

David Porath pleaded guilty in the U.S. District Court in Manhattan to charges originally filed under seal on February 18, 2010. At the time of the indictment, Porath was living in Israel. He was extradited and returned to the United States on February 16, 2012. According to the indictment, between early 2000 and March 2005, Porath and his co-conspirators engaged in a bid-rigging conspiracy whereby they created the illusion of a competitive bidding process at NYPH by preparing and submitting fictitious, intentionally high bids so that Porath’s company would be awarded the contracts for re-insulation services for having the “low” bid.

“By submitting intentionally high, non-competitive bids, the co-conspirators deceived NYPH and distorted the competitive market,” said Acting Assistant Attorney General Joseph Wayland in charge of the Department of Justice’s Antitrust Division. “The division will continue to apprehend and bring to justice those who rig bids and thereby deprive the public of the benefits afforded by a truly competitive bidding process.”

The indictment further charged that between October 2000 and February 2005, Porath conspired with Andrzej Gosek, the owner of a Pennsylvania-based asbestos abatement company, and others to defraud the IRS and to subscribe to false tax returns. Porath gave Gosek checks made out to companies in Brooklyn, purportedly for work done at NYPH by the Brooklyn companies as sub-contractors to Porath’s company. However, the companies had not performed the work. The checks totaled approximately $229,100 in 2000; $1.19 million in 2001; $760,000 in 2002; $50,000 in 2003; and $125,000 in 2004.

The Brooklyn companies cashed the checks and Gosek delivered the cash, less approximately five percent, back to Porath. Based upon these checks to the Brooklyn companies, Porath took false deductions on his company’s and his personal federal tax returns, allowing Porath to fraudulently reduce his taxable income. The indictment also charged Porath with filing a false federal tax return on or about February 17, 2005, which substantially understated his income.

The bid-rigging charge carries a maximum penalty of 10 years in prison and a $1 million fine. The tax fraud conspiracy charge carries a maximum penalty of five years in prison and a $250,000 fine. The false subscription charge carries a maximum penalty of three years in prison and a $100,000 fine. The maximum fine for each of these charges may be increased to twice the gain derived from the crimes or twice the loss suffered by the victims of the crimes, if either of those amounts is greater than the statutory maximum fine.

Including Porath and Gosek, who pleaded guilty in November 2010, 15 individuals and six companies have been convicted of or pleaded guilty to charges arising out of this federal antitrust investigation of bid rigging, fraud, bribery, and tax-related offenses relating to the award of contracts by the facilities operations department of NYPH.




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Tuesday, July 10, 2012

Gregory Flores Sentenced to 144 Months of Imprisonment for Wire Fraud Conspiracy and Tax Evasion in Mortgage Fraud Conspiracy


Source-  http://www.fbi.gov/losangeles/press-releases/2012/anaheim-hills-man-sentenced-to-144-months-of-imprisonment-for-wire-fraud-conspiracy-and-tax-evasion-in-mortgage-fraud-conspiracy 

RIVERSIDE, CA—Today, Gregory Flores, former manager at All Fund Mortgage in Anaheim Hills, was sentenced to 144 months’ imprisonment and three years of supervised release. U.S. District Judge J. Virginia Phillips also ordered Gregory Flores to pay over $1 million in restitution to homeowner victims and over $98,000 in restitution to the IRS for his role in a mortgage fraud conspiracy and for evading taxes.

On February 24, 2012, Gregory Flores pleaded guilty to one count of wire fraud conspiracy and one count of tax evasion. According to the plea agreement, Flores, along with other co-conspirators including Sheri Gale, a realtor in La Mesa, and Amy Hall (also known as Amy Truijillo) also of Anaheim Hills, a loan processor, executed an illegal scheme by wire communication to defraud distressed homeowners facing foreclosure and lenders who made mortgage and home equity loans.

According to court documents, beginning around May 2003 through around June 2006, Flores managed satellite All Fund Mortgage offices, a mortgage company based in Tacoma Washington, in Anaheim Hills and Murrieta. Flores or his co-conspirators, using various names including All Fund, Advantage 2000, Crown and Associates, Ichthommol Trust, B Owned, or Right Way Inc. contacted numerous homeowners, mostly in San Bernardino and Riverside counties, to sell or refinance their homes to others controlled by co-conspirators. Flores and others falsely claimed they could save the homeowners from foreclosure. Homeowners were also solicited through advertisements in mailings such as the “Penny Saver” or by conducting “knock and talk,” and they typically had poor credit.

As part of the conspiracy, Flores and others would convince the homeowner to allow an “investor” (who was really a “straw buyer”) with good credit to be added to the title of their home, sometimes forging homeowner documents, telling the homeowner he/she could then refinance under a more favorable term. In most cases, title was never transferred back to the homeowner, essentially stealing the equity out of the property. Few, if any, payments were ever made, and the properties were eventually sold in the course of foreclosure proceedings.

In furtherance of the scheme, Flores and others recruited individuals with good credit to act as straw buyers, offering an opportunity to purchase an investment property with an instant tenant and receiving a kickback between $1,000 to $25,000 per property. Flores and others also submitted false documents and provided false statements to lenders inducing them to give mortgages and home equity loans for the properties based upon false documents and statements submitted for loan applications to lenders on behalf of straw buyers. At escrow closing, co-conspirators caused the homeowners equity and/or loan proceeds to be deposited by means of the Fedwire system into bank accounts they controlled and kept the escrow proceeds for themselves. At least 21 homeowners were victimized in a total of $1,042,866.08.




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Monday, July 9, 2012

Ali Sedghi Vaziri Charged Nine Counts of Health Care Fraud and Six Counts of Filing a False Federal Income Tax Return


Source-  http://www.fbi.gov/sanfrancisco/press-releases/2012/napa-doctor-charged-with-health-care-fraud-tax-fraud 

SAN FRANCISCO—Ali Sedghi Vaziri of Napa, California, was charged yesterday by a federal grand jury in San Francisco with nine counts of health care fraud and six counts of filing a false federal income tax return, United States Attorney Melinda Haag announced.

The superseding indictment adds health care fraud charges to the tax fraud charges contained in the original indictment returned by the grand jury on April 12, 2012. According to the superseding indictment, Vaziri was a medical doctor who owned and operated a medical practice in Napa. Between 2007 and October 21, 2011, Vaziri allegedly defrauded health care benefit programs in connection with payment for health care benefits and services by submitting false claims that reflected a higher level of service than he actually provided, a practice known as upcoding.

On April 17, 2012, Vaziri pled not guilty to the tax fraud charges contained in the original indictment and was released on a $250,000 secured bond. The tax fraud charges contained in the superseding indictment are identical to the charges in the original indictment. According to the indictment, for 2005 and 2006, Vaziri allegedly overstated his business expenses on his tax returns for those years. For 2007 and 2008, Vaziri overstated his total deductions on his corporate income tax returns filed for those years.

Vaziri is scheduled to be arraigned on the superseding indictment on July 5, 2012, before United States Magistrate Court Judge Maria-Elena James. Vaziri is next scheduled to appear in District Court on August 6, 2012, before United States District Court Judge James Ware.

The maximum statutory penalty for each count of health care fraud, in violation of 18 U.S.C. § 1347, is 10 years in prison and a fine equal to two times the gross gain or loss. The maximum statutory penalty for each count of willfully subscribing a false income tax return, in violation of 26 U.S.C. § 7206(1), is three years in prison and a fine of $100,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.




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