Friday, August 31, 2012

Chad Shedro Sentenced in Health Care Fraud and Tax Evasion Case


Source- http://www.fbi.gov/indianapolis/press-releases/2012/rossville-man-sentenced-in-health-care-fraud-and-tax-evasion-case

HAMMOND, IN—United States Attorney David Capp announced that Chad Shedron, 36, of Rossville, Indiana, was sentenced by Chief Judge Philip Simon to 57 months’ imprisonment and one year of supervised release after pleading guilty to a two-count Information charging him with the felony offenses of executing a scheme to defraud the Indiana Medicaid health benefit program and evading federal income tax.

According to the plea agreement filed in this case, Shedron agreed to a money judgment in the amount of $3,521,961.22, which represents the dollar amount of proceeds derived from the health care fraud. He also agreed that the tax loss for 2007 was approximately $189,009.00, and further agreed that he is responsible for tax losses of $164,728.99 in 2008; $141,623.00 in 2009; and $32,310.00 in 2010. Further, Shedron agreed to forfeit his personal residence, $65,000 in cash, a brokerage account, jewelry, and a baseball card collection with an estimated value of over $200,000.



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Thursday, August 30, 2012

Joseph Wagner Pleads Guilty to Fraud, Conspiracy, and Money Laundering


Source- http://www.fbi.gov/losangeles/press-releases/2012/actor-and-accountant-agree-to-plead-guilty-to-conspiracy-charges-in-mortgage-fraud-scheme-that-cost-banks-3.8-million

ORLANDO, FL—United States Attorney Robert E. O’Neill announces that Joseph Wagner (62, Daytona Beach) today pleaded guilty to health care fraud, conspiracy to illegally distribute prescription drugs, and money laundering. Wagner faces a maximum penalty of 30 years in federal prison. He was indicted on June 13, 2012.

According to the plea agreement, Wagner was a licensed chiropractor and owner of Wagner Chiropractic and Acupuncture Clinic (WCAC) in Volusia County, Florida. He operated WCAC as a facility that purported to provide chiropractic and other medical services to customers. On occasion, Wagner did provide chiropractic services to customers of WCAC. However, he also submitted inflated bills to public and private health care beneficiary programs, including Medicare. Wagner charged those programs at the higher rates for services rendered by medical doctors, instead of the rates appropriate for chiropractors. In addition, Wagner systematically submitted claims for reimbursement for services not rendered.

As part of the fraud scheme, Wagner submitted fraudulent billings in the names of medical doctors. By doing so, the health care beneficiary programs would make payments directly to those medical doctors. The doctors accepted those payments and would often split the fraudulently obtained insurance payments with Wagner. In the case of at least one medical doctor participating in the fraudulent scheme, Wagner received payments from the health care beneficiary programs by check and then deposited those checks into the medical doctor’s bank account.

Wagner also provided customers of WCAC with prescriptions for prescription drugs, often in return for cash payments. Since he could not prescribe controlled substances, Wagner provided prescriptions for controlled substances to customers of WCAC using the names of medical doctors who were aware that Wagner was using their names illegally. Many of the patients who obtained prescriptions for controlled substances through Wagner used their Medicaid coverage at pharmacies to pay for those controlled substances.



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Wednesday, August 29, 2012

Federal Court Permanently Bars Scott A. Waage from Tax Preparation and Giving Tax Advice


Source-  http://www.justice.gov/opa/pr/2012/August/12-tax-1054.html 

A federal court in San Diego has permanently barred a tax lawyer and his law firm from providing tax advice and from preparing federal tax returns for others, the Justice Department announced today. The civil injunction order against Scott A. Waage, of San Diego, was signed by Judge William Q. Hayes of the U.S. District Court for the Southern District of California. Waage agreed to the injunction without admitting the allegations against him.

The government complaint in the case alleged that Waage, a self-proclaimed “visionary tax attorney,” promoted tax fraud schemes that helped customers evade income taxes through a concept he called “Strategic Integrated Planning.” According to the complaint, one of Waage’s schemes involved creating and using sham consulting corporations (purportedly headquartered in customers’ homes) that did not perform consulting services. Customers funneled funds to the sham companies to pay for and improperly deduct the customers’ personal expenses, the complaint alleged.

Waage also unlawfully used employee-benefit plans to pay customers’ personal expenses and used pension plans to illegally increase and accelerate deductions and avoid income taxes on plan payouts (illegally structured and funded by life insurance contracts), according to the allegations in the complaint. Robert O. Jensen, a certified public accountant, allegedly prepared the customers’ tax returns claiming the bogus deductions generated by Waage’s schemes. Last March the court enjoined Jensen from preparing tax returns that understate income.

The government complaint alleges that the harm to the Treasury as a result of Waage’s schemes exceeded $10.8 million.


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Tuesday, August 28, 2012

William P. Stiles Pleds Guilty to the Felony Crimes of Wire Fraud and Tax Evasion


Source-  http://www.fbi.gov/albany/press-releases/2012/binghamton-area-businessman-admits-700-000-theft-and-tax-evasion 

Richard S. Hartunian, United States Attorney for the Northern District of New York; Clifford C. Holly, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation; and Toni Weirauch, Acting Special Agent in Charge, New York Field Office, Internal Revenue Service-Criminal Investigations, make the following announcement:

William P. Stiles, 42, of Deposit, Broome County, New York, pled guilty today in United States District Court to the felony crimes of wire fraud and tax evasion. Sentencing is scheduled for December 21, 2012, at 9:30 a.m. in Binghamton.

In entering his guilty plea before Senior United States District Court Judge Thomas J. McAvoy, Stiles admitted that, as chief operating officer and part-owner of Aeden Waterford Inc. (AWI), a payroll and human services company located in the city of Binghamton, he stole a total of more than $700,000 from approximately 100 business clients of AWI between November 2005 and November 2010.

The money stolen by Stiles was supposed to be used by Stiles to pay client employment witholding taxes but instead was deposited by Stiles into Stiles’ personal bank accounts. Stiles used the funds stolen from AWI clients for his own personal benefit. Stiles further admitted he evaded income taxes due on the stolen money.


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Monday, August 27, 2012

Asim Waqar Pleads Guilty in $1.8 Million Scheme to Defraud Kaiser Permanente


Source-  http://www.fbi.gov/sanfrancisco/press-releases/2012/former-manager-pleads-guilty-in-1.8-million-scheme-to-defraud-kaiser-permanente 

OAKLAND, CA—A former employee of Kaiser Permanente pleaded guilty Wednesday to charges of conspiracy to commit wire fraud and tax evasion, United States Attorney Melinda Haag and Internal Revenue Service Criminal Investigation Special Agent in Charge Marcus Williams announced.

In pleading guilty, Asim Waqar admitted that from July 2004 through September 2008, he was employed with Kaiser Permanente in Oakland and responsible for the supervision of a number of Kaiser employees and contract employees.

In February 2005, Waqar and co-defendant Farid Rahman, Waqar’s college friend, discussed a plan to defraud Kaiser by falsely reporting to Kaiser that Rahman’s wife, co-defendant Mina Kuhl, was a contract employee working for Kaiser under Waqar’s supervision from her Michigan residence. They agreed that once Kuhl was hired by Kaiser, Waqar would falsely report to Kaiser the hours allegedly worked by Kuhl, thereby causing her to receive payments from the staffing companies hired by Kaiser to handle the payroll for contract employees. They further agreed that Rahman would pay Waqar a percentage of the money Kuhl received from the Kaiser staffing companies.

In furtherance of the conspiracy, Kuhl submitted a resume and employment application to Kaiser. Aided by Waqar’s strong endorsement, in March 2005 Kuhl was hired by Kaiser as a contract employee to work under Waqar’s supervision from her residence in Michigan. Once hired as a contractor, Kuhl performed no work for Kaiser, but with her knowledge and consent, throughout the conspiracy Waqar logged on to a Kaiser computer using Kuhl’s name and password and falsely reported hours she purportedly worked.

Beginning in April 2005 and continuing to August 2008, when Kaiser learned of the fraudulent scheme, Kaiser paid the third party vendors $1,803,667 for hiring, employing, and paying Kuhl; and Kuhl received a gross salary of $1,521,875, prior to withholdings. During this same time period, Waqar received $428,300 in kickbacks from Rahman and Kuhl. Waqar willfully failed to report this income to the Internal Revenue Service and failed to pay taxes on the income, which resulted in a tax loss of $142,530 to the United States.

Waqar, 39; Farid Rahman, 43; and Minda Kuhl, 37, all of Windsor, Canada, were charged in a superseding information on November 3, 2011. Waqar and Rahman were each charged with conspiracy to commit wire fraud and tax evasion. Kuhl was charged with conspiracy to commit wire fraud. Rahman and Kuhl pleaded guilty to all charges on March 3, 2012, and were sentenced on June 26, 2012. Rahman was sentenced to 18 months in prison and Kuhl was sentenced to one year and one day. They were ordered to pay restitution in the amount of $1,803,667 to Kaiser and $133,044 to the IRS.


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Sunday, August 26, 2012

Theodora Ross a Former Head of Dallas Crime Stoppers Office Pleads Guilty to Conspiracy and Tax Charges


Source-  http://www.fbi.gov/dallas/press-releases/2012/former-head-of-dallas-crime-stoppers-office-pleads-guilty-to-conspiracy-and-tax-charges 

DALLAS—Theodora Ross, 52, of Rowlett, Texas, and a former senior corporal with the Dallas Police Department, pleaded guilty this morning, before U.S. Magistrate Judge Irma C. Ramirez, to one count of conspiracy to commit wire fraud stemming from her role as head of Dallas Crime Stoppers office and one count of willfully attempting to evade assessment of income taxes, announced U.S. Attorney Sarah R. SaldaƱa of the Northern District of Texas. Ross, who remains on bond, faces maximum statutory sentences of 20 years in prison and a $250,000 fine on the wire fraud conspiracy count and five years in prison and a $100,000 fine on the income tax evasion count. Restitution may also be ordered. Sentencing is set for December 3, 2012, before U.S. District Judge David C. Godbey.

Crime Stoppers is a nationwide program that offers cash rewards for information from anonymous callers that leads to the arrest and indictment of criminals. The program guarantees the anonymity of callers. The Dallas Crime Stoppers office is funded by the North Texas Crime Commission (NTCC), fines levied by the Dallas and Collin County courts, private donations and fund raising. At the time of the offense, the office was staffed by officers of the Dallas Police Department and deputies with the Dallas County Sheriff’s Office.

Ross’s co-defendant in the case, Malva R. Delley, 38, of Dallas pleaded guilty on May 17, 2011, to one count of conspiracy to make a false statement to a financial institution. Delley, who also remains on bond, faces a maximum statutory sentence of five years in prison and a $250,000 fine. She is scheduled to be sentenced on September 24, 2012, by Judge Godbey.

According to the indictment in the case, Ross worked at the Dallas Crime Stoppers office from 2003 to May 2010 and headed that office from March 2006 to May 2010.

According to plea documents filed in the case, beginning in February 2005 and continuing to May 2010, Ross and Delley conspired together to defraud the NTCC. Ross determined which tips would be presented to the NTCC for cash reward approval and prepared the list of Crime Stoppers cash rewards that were to be paid each month and sent the lists to JP Morgan Chase Bank. These lists contained both bogus tips that Ross had created as part of the scheme and legitimate cash reward tip numbers and code words. Ross provided the bogus tip information to Delley, who then presented that information to the bank and collected cash rewards. Afterwards, Delley, per Ross’ instructions, divided the cash with Ross. On many occasions, Delley would deposit Ross’ share directly into Ross’ bank account.

Regarding the tax conviction, according to the factual resume filed in the case, Ross admitted that for calendar years 2006, 2007, 2008, and 2009, she filed false and fraudulent federal income tax forms on which she falsely and substantially understated her taxable income by omitting the proceeds of her illegal fraudulent scheme. For those four years, Ross failed to report a total of nearly $175,000 in income and failed to pay nearly $38,000 in taxes due.


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Saturday, August 25, 2012

Kandi Kay Holden was Indicted for Theft from Local Company and Filing False Tax Returns


Source-  http://www.fbi.gov/jacksonville/press-releases/2012/bookkeeper-indicted-for-theft-from-local-company-and-filing-false-tax-returns 

PENSACOLA, FL—A federal grand jury today charged Kandi Kay Holden, 43, of Cantonment, Florida, in a federal indictment that included 120 counts of wire fraud and five counts of federal tax violations.

The 125-count indictment charges Holden with diverting funds from her place of employment and failing to report this money as income on her federal income tax returns. Specifically, the indictment alleges that from November 2004 until her discharge in January 2011, Holden was employed by Cantwell Steel Erectors Inc., located in Pensacola, Florida, as part of the company’s bookkeeping and accounting department. While so employed, Holden allegedly initiated 120 unauthorized wire transfers totaling $282,000. She then transferred the money from the bank account of Cantwell Steel Erectors into various bank accounts that she controlled. Holden is also charged with filing false tax returns for the years 2006 through 2009 and willfully failing to file her 2010 individual federal income tax return. The indictment charges that during these years, Holden should have reported income of $102,373.46 for 2006; $142,967.99 for 2007; $153,597.73 for 2008; $149,370.00 for 2009; and $121,449.24 for 2010.

If convicted, the defendant faces maximum sentences of 20 years in prison for each count of wire fraud, three years in prison for each count of filing false tax return, and one year in prison for willfully failing to file a tax return.


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Friday, August 24, 2012

Arvind Ahuja was Convicted of Filing False Tax Return and Failing to File Report of Foreign Bank Accounts


Source- http://www.justice.gov/opa/pr/2012/August/12-tax-1043.html

A jury convicted Arvind Ahuja yesterday on federal tax charges stemming from his failure to disclose offshore bank accounts maintained in India and the Bailiwick of Jersey, the Justice Department and Internal Revenue Service (IRS) announced. Trial began on Aug. 15, 2012 before U.S. District Judge Charles N. Clevert, Jr., in Milwaukee. Ahuja, a prominent neurosurgeon in Milwaukee, was convicted of one count of filing a false 2009 individual income tax return and one count of failing to file a Report of Foreign Bank and Financial Accounts (FBAR).

According to the evidence presented at trial, Ahuja transferred millions of dollars from bank accounts in the United States to undeclared bank accounts located in India at HSBC bank. Ahuja invested the funds in these accounts in certificates of deposit, which earned more than $2.7 million in interest income during the years 2005 through 2009. Ahuja also maintained an HSBC bank account in the Bailiwick of Jersey, a British Crown dependency located in the Channel Islands off the coast of Normandy, France. Ahuja used credit and debit cards linked to this account to pay personal expenses while on trips to London. Ahuja managed his offshore accounts with the assistance of bankers who worked at an HSBC India representative office in New York.

The evidence established that for tax year 2009, Ahuja filed a false tax return with the IRS that failed to report the interest income earned on his certificates of deposit at HSBC India, and failed to report he had signature authority over bank accounts located in India and Jersey. Ahuja also failed to file an FBAR for 2009 to report his offshore accounts to the IRS. Ahuja?s accountant testified that Ahuja never disclosed the existence of his offshore accounts during the preparation of his tax returns.

United States citizens and residents who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III, of their individual income tax returns. Additionally, U.S. citizens and residents must file an FBAR with the United States Treasury disclosing any financial account in a foreign country with assets in excess of $10,000 in which they have a financial interest, or over which they have signature or other authority.



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Wednesday, August 22, 2012

Sonya Darrington Pleads Guilty in Stolen Identity Refund Fraud Scheme


Source- http://www.justice.gov/opa/pr/2012/August/12-tax-1028.html 

Sonya Darrington pleaded guilty in the Middle District of Alabama to conspiracy to defraud the United States, the Justice Department and the Internal Revenue Service (IRS) announced today.

According to court documents related to the guilty plea, Darrington had been involved in a stolen identity federal tax refund fraud scheme from April 2006 through June 2011. In April 2006, Darrington opened a bank account that received a total of $129,144 in fraudulently obtained tax refunds.



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Tuesday, August 21, 2012

Quentin Collick Was Indicted in Stolen Identity Refund Fraud Conspiracy


Source- http://www.justice.gov/tax/2012/txdv121016.htm

WASHINGTON – A federal grand jury in Montgomery, Ala., returned an indictment charging Quentin Collick for conspiring to file false tax returns using stolen identities, theft of public funds, and aggravated identity theft, the Justice Department and the Internal Revenue Service (IRS) announced today.

According to the indictment, between January 2011 and April 2012, Collick conspired with others to file false tax returns using stolen identities. He obtained stolen identities and obtained mailing addresses to which the fraud proceeds would be sent. Collick collected several federal tax refund checks sent to one of those addresses. He then caused those checks to be cashed.

An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Collick faces maximum potential sentence of 10 years in prison for the conspiracy to file false claims, 10 years for each theft of government funds count, and a mandatory 2-year sentence for the aggravated identity theft counts. He is also subject to fines and mandatory restitution if convicted.



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Monday, August 20, 2012

Gino Carlucci Was Sentenced to More Than 15 Years in Prison in Money Laundering and Tax Scheme


Source- http://www.justice.gov/tax/2012/txdv121018.htm

WASHINGTON – Gino Carlucci was sentenced to 188 months in prison for his role in conspiracies to commit money laundering and to defraud the Internal Revenue Service (IRS), and for filing a false income tax return, the Justice Department and the IRS announced today. On July 25, 2011, a federal jury in Phoenix convicted Carlucci of both conspiracies and the tax crime after an eight-day trial.

According to the evidence presented at trial, Carlucci and his co-defendant, Wayne Mounts, stole large sums of money and assets from Joseph Flickinger, a tax return preparer in Ohio who had himself defrauded multiple clients of their life savings in a fraudulent investment scheme. Flickinger pleaded guilty to federal charges in a separate case and was sentenced to 70 months in prison. After defrauding Flickinger of the money, Carlucci and Mounts devised a scheme to have Flickinger arrested by federal officials, and then used the money for their own personal benefit. In addition to money, Carlucci and Mounts defrauded Flickinger out of several high-end vehicles and a condo near Lake Erie, Ohio, which they quickly sold for $210,000. Carlucci had some of the funds transferred into bank accounts held in the name of his wife and father-in-law. Carlucci’s wife and Mounts withdrew more than $300,000 in cash over several months in increments of $10,000 or less so that they could avoid having the bank report their withdrawals to authorities. Carlucci and Mounts spent an additional $150,000 of the funds to buy a 43-foot luxury boat whose existence Carlucci concealed from the government for over two years.

“This sentence demonstrates that those who would hide assets and income from the IRS using phony identifications and bogus documents, all for the purpose of enriching themselves, will be properly punished for their crimes,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division.

“Today, Mr. Carlucci was held accountable for his criminal behavior,” said Richard Weber, Chief IRS Criminal Investigation. “He's nothing more than a con man motivated by greed. His sentencing is a victory for honest taxpaying citizens.”



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Sunday, August 19, 2012

Willie C. Grant Pleads Guilty to Stolen Identity Refund Fraud Crimes


Source- http://www.justice.gov/tax/2012/txdv121020.htm

WASHINGTON – A tax return preparer from Macon, Ga., pleaded guilty Thursday to filing a false claim for tax refund, theft of government money and aggravated identity theft, the Justice Department and the Internal Revenue (IRS) announced.

According to court documents, Willie C. Grant is a former tax return preparer who used many of his former clients’ names and Social Security numbers to file false federal income returns in their names and without their knowledge. On these tax returns, Grant intentionally claimed false tax refunds and directed the IRS either to electronically deposit the false refunds into his personal or business bank accounts or to issue paper refund Treasury checks which he then cashed or deposited into his personal or business bank accounts. Grant spent the proceeds of his false refund scheme on personal items including expensive cars and personal living expenses.

Court documents further established that from 2003 through 2008, Grant owned and operated a tax return preparation business, Grant Income Tax Bookkeeping and Check Cash (GIT) out of his home in Macon, eventually closing GIT in 2009. During calendar years 2006 through 2009, Grant prepared and filed false tax returns in the names of unsuspecting individuals. Many of the individuals were elderly or disabled former clients of GIT or deceased individuals. Grant admitted that that he abused his position of private trust as a professional paid tax preparer in committing his crimes.



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Saturday, August 18, 2012

Federal Court has Permanently Barred Ahferom Goitom From Preparing Federal Tax Returns for Others


Source- http://www.justice.gov/opa/pr/2012/August/12-tax-1005.html

A federal court in Kansas City, Kan., has permanently barred Ahferom Goitom from preparing federal tax returns for others, the Justice Department announced today. The civil injunction order, to which Goitom consented without admitting the allegations against him, was signed by Judge John W. Lungstrum of the U.S. District Court for the District of Kansas. The case is one of five similar lawsuits (the others were filed in Indianapolis; Las Vegas; Chicago; and Dayton, Ohio) to shut down four of the largest Instant Tax Service franchise owners, as well as the Dayton-based corporate franchisor of the Instant Tax Service brand—ITS Financial LLC.

The government complaint in the Kansas case alleges that Goitom managed an Instant Tax Service store in Kansas City, Kan., where he prepared false and fraudulent income tax returns for others. The United States accused Goitom of forging forms W-2, filing returns improperly based on paycheck stubs rather than W-2 wage statements, fabricating income for phony businesses to obtain larger tax credits, claiming false education tax credits and filing tax returns without customer authorization. The complaint also alleges that Goitom sold false and deceptive loan products to Instant Tax Service customers.



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Friday, August 17, 2012

Larreka Jackson was Indicted in $2.8 Million Conspiracy to Use Stolen Identities to Obtain Tax Refunds


Source- http://www.justice.gov/tax/2012/txdv121009.htm

WASHINGTON – A federal grand jury in Montgomery, Ala., returned a 25-count indictment charging Larreka Jackson for conspiring to file false tax returns using stolen identities, filing false claims, wire fraud and aggravated identity theft, the Justice Department and the Internal Revenue Service (IRS) announced today.

According to the indictment, Jackson operated a tax preparation business called It’s Tax Time in Montgomery, Ala. Jackson used It’s Tax Time as a front to file false tax returns using stolen identities. Jackson unlawfully obtained the names and Social Security numbers of actual persons and filed false tax returns using those names. Jackson directed the fraudulent tax refund to bank accounts controlled by her and her co-conspirators. In total, Jackson filed over 500 tax returns claiming over $2.8 million in fraudulent tax refunds.

An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Jackson faces a maximum potential penalty of 10 years in prison for the conspiracy to file false claims, 5 years for each false claim count, 20 years for each wire fraud count and a mandatory 2-year sentence for the aggravated identity theft counts. Jackson is also subject to fines and mandatory restitution if convicted.



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Thursday, August 16, 2012

David L. Johnson and Michael L. Putnam Were Sentenced For Tax Fraud


Source- http://www.justice.gov/tax/2012/txdv121000.htm

WASHINGTON – David L. Johnson and Michael L. Putnam were sentenced today following their convictions for tax crimes related to their involvement in the Genesis Fund, the Justice Department and Internal Revenue Service (IRS) announced. Both Johnson and Putnam had previously pleaded guilty before U.S. District Judge Dale S. Fischer in the Central District of California. According to the original indictment filed in this case, the Genesis Fund was a private investment fund that was marketed as investing in foreign currency trading, but that operated as a Ponzi scheme.

Johnson, 73, of Loma Linda, Calif., was sentenced to 30 months in prison for filing two false tax returns in which he failed to disclose his bank account in Costa Rica to the IRS. According to the plea agreement, Johnson used this bank account to conceal Genesis Fund distributions from the IRS. Judge Fischer also ordered Johnson to pay restitution of $2.3 million: approximately $1.9 million to investors in the Genesis Fund and $400,000 to the IRS.

Putnam, 68, of St. George, Utah, formerly of Huntington Beach, Calif., was sentenced to 12 months and a day in prison for conspiracy and tax fraud and ordered to pay over $13 million in restitution: approximately $10 million to investors in the Genesis Fund and $3 million to the IRS. According to court documents, Putnam had cooperated with the government in the prosecution of other defendants charged for their involvement in the Genesis Fund.

According to court documents, Johnson and Putnam received significant distributions that they hid in foreign bank accounts and did not report to the IRS. Johnson received over $2.4 million while Putnam received over $1.5 million.



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Wednesday, August 15, 2012

Larreka Jackson Indicted in $2.8 Million Conspiracy to Use Stolen Identities to Obtain Tax Refunds


Source- http://www.justice.gov/opa/pr/2012/August/12-tax-1009.html

A federal grand jury in Montgomery, Ala., returned a 25-count indictment charging Larreka Jackson for conspiring to file false tax returns using stolen identities, filing false claims, wire fraud and aggravated identity theft, the Justice Department and the Internal Revenue Service (IRS) announced today.

According to the indictment, Jackson operated a tax preparation business called It’s Tax Time in Montgomery, Ala. Jackson used It’s Tax Time as a front to file false tax returns using stolen identities. Jackson unlawfully obtained the names and Social Security numbers of actual persons and filed false tax returns using those names. Jackson directed the fraudulent tax refund to bank accounts controlled by her and her co-conspirators. In total, Jackson filed over 500 tax returns claiming over $2.8 million in fraudulent tax refunds.

An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Jackson faces a maximum potential penalty of 10 years in prison for the conspiracy to file false claims, 5 years for each false claim count, 20 years for each wire fraud count and a mandatory 2-year sentence for the aggravated identity theft counts. Jackson is also subject to fines and mandatory restitution if convicted.



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Tuesday, August 14, 2012

Six Indicted in Alabama in Million-dollar Conspiracy to Use Stolen Identities to Obtain Tax Refunds


Source- http://www.justice.gov/opa/pr/2012/August/12-tax-1008.html

A federal grand jury in Montgomery, Ala., returned a superseding indictment charging Antoinette Djonret, Angelique Djonret, Tabitha Stinson, Melba Wilson, Chantresa Hayes and Corey Means with conspiring to file false tax returns using stolen identities, the Justice Department and the Internal Revenue Service (IRS) announced today. The 49-count indictment charges Djonret with filing false claims, theft of government funds, access device fraud, aggravated identity theft and possession of unauthorized access devices. Angelique Djonret is also charged with filing false claims, theft of government funds and aggravated identity theft. Corey Means and Chantresa Hayes are charged with theft of government funds.

Antoinette Djonret had earlier been charged with making false claims in a criminal complaint that was filed on February 22, 2012, and in an indictment that was filed on March 28, 2012. According to court documents, Antoinette Djonret obtained stolen identities from state of Alabama databases. Antoinette Djonret and her sister, Angelique Djonret, filed false tax returns using the stolen identities and directed the false tax returns to prepaid debit cards. Many of the tax returns were filed from Antoinette Djonret’s residence. The superseding indictment further alleges that each of the six defendants recruited individuals to purchase prepaid debit cards and to provide the cards to the defendants. They then had the tax refunds deposited onto the cards. In total, the defendants filed over 800 false tax returns and requested over $1.2 million in tax refunds.

An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face maximum potential prison terms of 10 years for the conspiracy to file false claims, 5 years for each false claims count, 10 years for each theft of government funds count, 15 years for access device fraud count, 10 years for the possession of unauthorized access devices count, and a mandatory 2-year term for the aggravated identity theft counts. The defendants are also subject to fines and mandatory restitution if convicted.



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Monday, August 13, 2012

Richard Kellogg Armstrong was Sentenced to Nine Years in Prison for Fraud and Tax Conspiracy


Source- http://www.justice.gov/opa/pr/2012/August/12-tax-998.html

Richard Kellogg Armstrong, 77, of Prescott, Ariz., was sentenced today by U.S. District Court Judge Robert E. Blackburn to 108 months in prison followed by three years of supervised release. Judge Blackburn ordered the sentence to run con secutively to the 660 day prison term and $1,021,500 of fines cumulatively imposed upon Armstrong as punitive sanctions for 10 acts of contempt of court. He also ordered Armstrong to pay restitution to the Internal Revenue Service (IRS) in the amount of $1,678,834 and to forfeit two residences and a personal aircraft. The sentence was announced by the Justice Department’s Tax Division, the U.S. Attorney’s Office for the District of Colorado and the IRS Criminal Investigation Denver Field Office. Codefendant Curtis L. Morris, age 43, of Elizabeth, Colo., is scheduled to be sentenced on Nov. 6, 2012.

Armstrong was found guilty on April 30, 2012, after a three week jury trial, of one count of mail fraud, eight counts of filing false claims against the United States, three counts of engaging in monetary transactions in property derived from mail fraud, and one count of conspiracy to defraud the United States. According to the testimony at trial, Armstrong, Morris and others conspired to file false tax returns claiming large tax refunds based upon fictitious federal income tax withholdings taken from bogus IRS Forms 1099-OID for themselves and others. Armstrong personally received over $1.6 million in fraudulent tax refunds and, according to the testimony at trial, quickly moved most of this money into accounts in the names of shell entities and offshore bank accounts.

“The sentence in this case demonstrates that those who defy the tax laws by preparing or filing false and frivolous tax returns will be prosecuted and punished for their conduct,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. “The Tax Division remains committed to prosecuting conduct that attempts to defy our nation’s tax laws.”

“The intent of this refund fraud scheme was to swindle the government and the taxpaying public” said Richard Weber, Chief, IRS-Criminal Investigation. “Today's sentencing of Mr. Armstrong again emphasizes that the Internal Revenue Service and Department of Justice will continue their aggressive pursuit of those who would attempt to defraud America's tax system.”



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Sunday, August 12, 2012

Federal Court Permanently Bars Damian and Holly Jackson from Promoting Alleged Tax-fraud Scheme and from Preparing Federal Tax Returns


Source- http://www.justice.gov/opa/pr/2012/August/12-tax-995.html

A federal court has permanently barred a Michigan couple, Damian and Holly Jackson, of Detroit, from preparing federal tax returns for others, preparing their own federal tax returns using false 1099 forms, and promoting an alleged tax-fraud scheme based on the frivolous “redemption” theory, the Justice Department announced today. The civil injunction order, to which the Jacksons consented without admitting the allegations against them, was signed by Judge Paul D. Borman of the U.S. District Court for the Eastern District of Michigan.

The government complaint in the civil case alleged that the Jacksons and their business, Diamond & Associates Enterprises, operated Diamond Tax Services and promoted a scheme involving the preparation of fraudulent federal income tax returns for customers seeking large tax refunds based on a frivolous tax-defier theory called “redemption” or “commercial redemption.”

The complaint alleged that Damian Jackson, a minister at the Perfecting Church in Detroit, prepared tax returns that claimed huge fraudulent refunds based on fabricated income-tax withholding reported on false IRS 1099 forms. According to the complaint, Holly Jackson transmitted the false 1099 forms to the Internal Revenue Service (IRS). The suit alleged that federal tax returns prepared for at least 182 customers under the auspices of Diamond Tax Services sought over $29 million in fraudulent refunds, and that the Jacksons’ own federal income tax returns have requested more than $2.5 million in bogus refunds. While most of these frivolous refund claims are intercepted by the IRS before refunds are issued, the complaint alleges that the defendants’ scheme has caused the IRS to issue at least $1.6 million in erroneous refunds to the defendants’ customers. According to the complaint, the Jacksons solicited up-front fees of $500 to $995 from customers, and received a 10 percent cut of any refund issued by the IRS.


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Saturday, August 11, 2012

Federal Court Bars Diana D. Bertocci-Aliffi From Preparing Federal Tax Returns for Other


Source- http://www.justice.gov/opa/pr/2012/August/12-tax-992.html

A federal court in Central Islip, N.Y., has permanently barred Diana D. Bertocci-Aliffi from preparing federal tax returns for others, the Justice Department announced today. The civil injunction order, to which Aliffi agreed without admitting the government’s allegations, was signed by Judge Joanna Seybert of the U.S. District Court of the Eastern District of New York.

The government complaint in the case alleged that Aliffi, of East Rockaway, claimed false Indian Employment Tax Credits (IETCs) for customers who were not eligible for the credits. The IETC is a credit for employers of certain qualified employees who are or whose spouses are members of an enrolled Indian tribe. It is not a credit for Native Americans who have no qualified employees. According to the complaint, Aliffi falsely told her customers, many of whom lived on or near the Shinnecock Indian Reservation in Southampton, N.Y., that they were eligible for the credit simply because they were Native Americans and lived on or near a reservation. Aliffi allegedly prepared federal income tax returns for these customers and improperly claimed the IETC on the returns. Aliffi also allegedly fabricated wage income and tax withholding on other customers’ tax returns in order to obtain larger tax refunds.

The government complaint alleged that Aliffi was incarcerated from February to August 2009 after pleading guilty in a New York state court to 76 counts of grand larceny, identity theft and forgery related to her tax preparation activities. According to the complaint she had stolen her customers’ personal information to file false federal and New York State tax returns, applied for refund anticipation loans using the false returns, and then diverted part of those loans to her own bank accounts.



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Friday, August 10, 2012

Yumeitrius Manuel Sentenced to Federal Prison for Tax Conspiracy Involving Stolen Identity Refund Fraud


Source- http://www.justice.gov/tax/2012/txdv12988.htm

WASHINGTON – Yumeitrius Manuel, a resident of Montgomery, Ala., was sentenced today in the Middle District of Alabama to 81 months in federal prison for filing false tax returns using stolen identities, the Justice Department and Internal Revenue Service (IRS) announced.

On Jan. 11, 2012, Manuel pleaded guilty to charges of conspiracy to defraud the government and aggravated identity theft. He was indicted by a federal grand jury on July 27, 2011, on charges of conspiracy, aggravated identity theft, wire fraud and false claims.

According to court documents, Manuel and his co-conspirator, Margaret Kirksey, each owned and operated a tax preparation business in Montgomery, located in the same physical place. The two fraudulently inflated tax refunds by placing false information on their clients’ tax returns. They also filed tax returns in the names and Social Security numbers of individuals who did not know about, and did not authorize, the filing of tax returns on their behalf. Both Manuel and Kirksey admitted that their respective crimes involved over $1 million in tax loss and more than 50 victims of identity theft. Kirksey also pleaded guilty to the conspiracy and to aggravated identity theft, and was sentenced on May 8, 2012, to 81 months in federal prison.



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Thursday, August 9, 2012

Federal Court has Permanently Barred Sharon Angulo and Claudia Zuloaga, From Preparing Federal Tax Returns for Others


Source- http://www.justice.gov/tax/2012/txdv12989.htm

WASHINGTON – A federal court in Miami has permanently barred Sharon Angulo and Claudia Zuloaga, both of Miami, from preparing federal tax returns for others, the Justice Department announced today. The injunction order was signed by Judge Joan A. Lenard of the U.S. District Court for the Southern District of Florida.

According to the government complaint in the civil case, Angulo and Zuloaga help customers use Internal Revenue Service (IRS) Forms 1099-OID to report fictitious income tax withholding. The complaint alleges that Angulo and Zuloaga’s customers file federal tax returns claiming tax refunds based on the fake withholding. The complaint states that the defendants have prepared or assisted in the preparation of at least 19 tax returns reporting false withholding and claiming fraudulent tax refunds totaling more than $3 million.

The court ordered Angulo and Zuloaga to pay to the U.S. Treasury the funds they received from customers who paid them a percentage of the tax refunds received through the scheme. The court also ordered the defendants to provide the government with a list of all persons for whom they prepared federal tax returns or forms since 2008.



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Wednesday, August 8, 2012

Bruce E. Grant Allegedly Falsifies Customers’ Returns to Maximize Earned Income Credit


Source- http://www.justice.gov/tax/2012/txdv12979.htm

WASHINGTON – The Justice Department announced that it has asked a federal court in Chicago to bar Bruce E. Grant and his business, Quick Check Limited, from preparing tax returns. The civil injunction suit alleges that Grant falsifies customers’ income on their tax returns, frequently by fabricating business income and expenses, in order to claim the maximum earned income tax credit (EITC) for them.

The EITC is a refundable credit available to certain low-income people. The maximum credit in 2010 was $5,666. Due to the method used to calculate the EITC, individuals with higher annual incomes may be entitled to a larger credit. Some tax preparers refer to the range of earned income generating a maximum EITC as the “sweet spot.” According to the complaint, Grant fabricated businesses and reported fake business income and expenses on his customers’ tax returns to achieve reported income in the EITC sweet spot.

The complaint alleges that Grant pleaded guilty in 2006 to one count of conspiracy to defraud the United States, based on allegations that Grant charged customers a fee for listing a false dependent on the customers’ tax returns. The government now seeks to bar Grant permanently from preparing federal tax returns altogether. According to the complaint, Grant’s Social Security number identified him as the paid preparer on 2,555 individual income tax returns prepared in 2011. Of these returns, 2,543 request a refund, an extraordinarily high refund rate of 99.5 percent.



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Tuesday, August 7, 2012

Enyinnaya Udo was Convicted of Preparing False Tax Returns


Source- http://www.justice.gov/tax/2012/txdv12978.htm

WASHINGTON – Following a jury trial that began on Aug. 1, 2012, a federal jury convicted Enyinnaya Udo on all 25 counts of an indictment charging him with aiding and assisting in the preparation of false individual income tax returns, the Justice Department and Internal Revenue Service (IRS) announced.

According to the indictment and evidence presented at trial, Udo operated a tax preparation business called Anic and Associates, located in Washington, D.C. Udo prepared false 2005 through 2008 individual income tax returns for seven taxpayers, falsely reporting that the taxpayers had unreimbursed employee expenses.

U.S. District Judge Barbara J. Rothstein scheduled sentencing for Nov. 1, 2012. Udo faces a potential maximum sentence of three years in prison and a fine of up to $250,000 on each count.



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Monday, August 6, 2012

Timothy Whiteagle Pleads Guilty of Bribery and Tax Charges in Connection with Tribal Contracts


Source- http://www.fbi.gov/milwaukee/press-releases/2012/jury-finds-member-of-ho-chunk-nation-guilty-of-bribery-and-tax-charges-in-connection-with-tribal-contracts

MADISON, WI—John W. Vaudreuil, United States Attorney for the Western District of Wisconsin, announced that Timothy Whiteagle, 60, Black River Falls, Wisconsin, was convicted of bribery and tax crimes today following an eight-day jury trial in federal court in Madison. The jury deliberated for approximately seven hours before finding Whiteagle guilty on all counts.

Whiteagle was convicted of one bribery conspiracy count (five years maximum penalty); eight bribery counts (10 years maximum penalty on each); two counts of filing false tax returns (three years maximum penalty); and one count of obstruction by attempting to persuade a person to lie to the FBI (20 years maximum penalty). U.S. District Judge William M. Conley scheduled sentencing for October 24, 2012.

United States Attorney Vaudreuil stated, “This prosecution demonstrates the commitment by this office and the U.S. Department of Justice to vigorously investigate and prosecute corruption in tribal governments.”

According to the evidence presented at the trial, the Ho-Chunk Nation, an Indian tribal government, operates casinos in the Western District of Wisconsin and annually receives federal grants well in excess of $10,000. Whiteagle is a Ho-Chunk tribal member. From 2002 to 2009, Whiteagle, at times with the assistance of Deborah H. Atherton, 55, Black River Falls, acted covertly as a behind-the-scenes consultant for clients seeking to do business with the Ho-Chunk Nation. The clients included companies that provided cash access services (such as check cashing and ATMs) at Ho-Chunk casinos and a company that sought to provide mortgages and housing for tribal members. Whiteagle received over $3 million dollars from the clients.

Whiteagle gave Clarence Pettibone, 53, Black River Falls, an elected legislator of the Ho-Chunk Nation, money and valuables, and Whiteagle and Atherton solicited clients seeking Ho-Chunk business to do the same. The valuables included checks; money orders; payments to a martial arts studio operated by Pettibone; a Pontiac Firebird; contributions for Pettibone’s re-election campaign; a job for a relative of Pettibone; golf outings; tickets to an NFL football game; visits to adult entertainment venues; auto body work on a car owned by a relative of Pettibone; and vacations for Pettibone and his family members.

Whiteagle and Atherton offered and gave the money and valuables to Pettibone to influence and reward him for helping certain clients do business with the nation; Pettibone knew the money and valuables were given to him to influence and reward him for assisting the clients; Whiteagle and Pettibone consulted with each other about how to use Pettibone’s official position to assist the clients in obtaining and keeping contracts with the Ho-Chunk Nation; and Pettibone, in his official capacity as an elected legislator, took steps to help the clients do business with the Ho-Chunk Nation, such as scheduling of clients’ proposals on the legislature’s agenda, making motions for the nation to enter into contracts with the clients, delaying legislative action, and opposing proposed contracts between the nation and competitors of the clients.

Atherton pleaded guilty on July 9 to conspiracy to commit bank fraud. Her sentencing is scheduled for October 10, 2012. She faces a maximum penalty of five years in federal prison.




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