Pius Kampfen Pleads Guilty to Failure to Report Foreign Bank Account

Source- http://www.justice.gov/tax/2013/txdv13742.htm

WASHINGTON – Assistant Attorney General for the Tax Division Kathryn Keneally and U.S. Attorney Melinda Haag for the Northern District of California announced that Pius Kampfen of Mill Valley, Calif., pleaded guilty today to an information charging him with willful failure to file the required reports of foreign bank accounts (FBAR) for a Swiss bank account he controlled.

According to the plea agreement, Kampfen was employed as an international banker for approximately 40 years until he retired in 2001. He retired as senior vice president and the senior west coast representative San Francisco of Julius Baer Bank. As an international banker, he advised Julius Baer clients interested in international diversification about the bank's investment management services.

Beginning in 2000, Kampfen was the beneficial owner of a number of bank accounts in Switzerland held in the name Albia Investments. Between 2000 and June 2012, he maintained accounts in the name of Albia at UBS AG, Pictet & Cie, ABN-AMRO, Bank Vontobel and Baumann & Cie. For the years 2007, 2008 and 2009, Kampfen failed to report any of the Albia accounts on his income tax returns or file FBARs for the accounts despite the fact that he knew he was required to do so.

As part of his plea agreement, Kampfen has agreed to pay an FBAR penalty of $1,465,393 before he is sentenced.

U.S. citizens and residents who have an interest in, or signature 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 U.S. 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.

Sentencing has been scheduled for Oct. 4, 2013. Kampfen faces a maximum penalty of five years in prison and a fine of up to $250,000.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

Dick Reid Jenkins Charged With Filing False Claims for TAX Refunds

Source- http://www.justice.gov/tax/2013/txdv13679.htm

WASHINGTON – A federal grand jury in Salt Lake City yesterday returned an indictment charging Dick Reid Jenkins, a resident of Heber City, Utah with eighteen counts of presenting false claims to the United States.

According to the indictment, in September 2008, Dick Jenkins filed a false 2007 income tax return for himself which claimed an income tax refund of $402,920. Then, in October 2008, Jenkins filed a false amended 2004 income tax return, which claimed an income tax refund of $434,261. Both false claims were based on the use of false Form 1099-OID, Original Issue Discount. In addition to his own false returns, from September 2008 through February 2009, Jenkins caused sixteen other false federal income tax returns to be filed on behalf of other individuals. These other false tax returns also used false Form 1099-OID and claimed federal income tax refunds totaling $8,407,623. The indictment further alleges that Dick Jenkins was licensed by the state of Utah as a Certified Public Accountant at all times relevant to these charges.

An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty. If convicted, Jenkins faces a maximum of 90 years in prison.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

Robert and Judy Sathre Indicted for TAX Evasion

Source- http://www.justice.gov/tax/2013/txdv13678.htm

WASHINGTON – In an indictment unsealed on June 12, 2013, Robert and Judy Sathre, of Sheridan, Wyo. were charged by a federal grand jury in Cheyenne, Wyo., for conspiring to defraud the IRS and tax evasion relating to taxes owed by Robert Sathre for tax years 1995 and 1996. Judy Sathre was also charged with filing a false tax return for tax year 2007.

According to the indictment, Robert Sathre sold a Minnesota business and received installment payments in 1995 and 1996 for more than three million dollars. Robert Sathre concealed his income by filing a 1995 tax return in which he reported only $64,928 in total income. Robert Sathre then purchased land and set up another business, a gas station/convenience store in Sheridan, Wyo. known as the Rock Stop.

According to the indictment, the Sathres concealed assets by opening a foreign bank account in the Caribbean island of Nevis and by using purported trusts. In a ten-month period spanning 2005-2006, Mr. Sathre sent over $500,000 to the account in Nevis to keep the funds out of reach from the IRS. When Robert Sathre sold the Rock Stop in 2007, he had over $1,250,000 from the sale proceeds wired to the trust account of a Wyoming law firm. Later the Sathres directed the law firm to wire $900,000 from the trust account to their account at the Bank of Nevis. They also provided a false declaration and false promissory note to the Bank of Nevis to conceal the source of this transfer. Robert Sathre obtained a debit card linked to the foreign account to access funds locally. He also provided the Bank of Sheridan with an IRS form on which he falsely claimed that he was neither a citizen nor a resident of the United States.

The indictment also alleges that the Sathres tried to conceal their ownership of real estate. They used a purported trust to encumber their residence at Troon Place in Sheridan and to conceal their ownership of property in Hennepin County in Minnesota. To conceal ownership of the Rock Stop, they similarly used a second purported trust, at one point resigning as trustees and appointing their teenage daughter as the trustee.

The indictment also charges Judy Sathre with one count of filing a false tax return for 2007. The indictment alleges that the return was false both for reporting only $42 in interest income and for failing to disclose that she had a financial interest and signatory authority over the bank account at the Bank of Nevis.

A trial date has not been scheduled. An indictment is merely an accusation, and every defendant is presumed innocent unless and until proven guilty.

The conspiracy and tax evasion charges each carry a maximum potential penalty of five years in prison and a fine of $250,000. The false return charge carries a maximum potential penalty of three years in prison and a $250,000 fine.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

Lanisha D. Applewhite Charged With Aiding and Assisting the Preparation of False TAX Returns and Identity Fraud

Source- http://www.justice.gov/tax/2013/txdv13677.htm

WASHINGTON – Lanisha D. Applewhite of Richmond, Calif., was indicted by a federal grand jury in San Francisco, for aiding and assisting the preparation and presentation of false and fraudulent federal income tax returns as well as identity fraud, the Justice Department and Internal Revenue Service (IRS) announced today.

According to the indictment, from 2008 through 2011, Applewhite, a return preparer, aided and assisted in the preparation and presentation of false and fraudulent federal income tax returns containing claims for deductions and credits to which her clients were not entitled. In addition, six counts allege that Applewhite used individuals' Social Security numbers without lawful authority in preparing false federal income tax returns.

The maximum penalty for aiding and assisting the preparation of false claims is three years in prison and a fine of $250,000 for each count of conviction. The maximum penalty for each count of identity fraud is 15 years in prison and a fine of $250,000.

An indictment is merely an accusation, and the defendant is presumed innocent until proven guilty.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

Christopher Cordelle Davis Indicted for Multi-State Stolen Identity Refund Fraud Scheme

Source- http://www.justice.gov/tax/2013/txdv13673.htm

WASHINGTON – Christopher Cordelle Davis, of Montgomery County, Ala., was indicted by a federal grand jury in the Middle District of Alabama for his role in a scheme to file fraudulent tax returns using stolen identities, the Justice Department and Internal Revenue Service (IRS) announced today following Davis's arrest. He was charged with conspiracy to defraud the United States, five counts of wire fraud, and five counts of aggravated identity theft.

According to the indictment, Davis provided stolen identities to Kenneth Jerome Blackmon Jr. Davis and Blackmon then filed fraudulent tax returns using the stolen identities. The refunds would be directed to debit cards. Davis would recruit individuals to obtain the debit cards and to go on trips during which the cards would be used to cash out the refund money at various locations in different states, including Georgia and South Carolina. The indictment also alleges that in September 2011, Davis possessed over 600 stolen identities, some taken from a medical facility in Alabama and over 200 prepaid debit cards in Gwinnett County, Ga. Blackmon was previously convicted and sentenced to 51 months in prison for his role in the conspiracy.

An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty. If convicted, Davis faces a maximum potential sentence of five years in prison for the conspiracy charge, up to 20 years in prison for each wire fraud charge and a mandatory two-year sentence for the aggravated identity theft counts. He will also be subject to fines and mandatory restitution and forfeiture if convicted.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

Doreen Hendrickson Arrested for Criminal Contempt

Source- http://www.justice.gov/tax/2013/txdv13657.htm

WASHINGTON – Doreen Hendrickson of Commerce Township, Mich., was arrested today following an indictment by a federal grand jury for criminal contempt, the Justice Department and Internal Revenue Service (IRS) announced.

Hendrickson and her husband, Peter Hendrickson, filed tax returns for 2002 and 2003 on which they claimed more than $20,000 in fraudulent tax refunds. These returns were based on the frivolous argument set forth in Peter Hendrickson's book, Cracking the Code, that only federal, state and local government employees are liable for the payment of income taxes. In May 2007, as part of a lawsuit against the Hendricksons filed by the department's Tax Division, U.S. District Judge Nancy G. Edmunds in Detroit entered a permanent injunction that barred the Hendricksons from filing additional false tax returns. Judge Edmunds also ordered the Hendricksons to file amended 2002 and 2003 returns. According to the indictment, Doreen Hendrickson violated this injunction by failing to file amended 2002 and 2003 tax returns and by filing a false 2008 tax return that was based on the arguments in her husband's book.

An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

David P. Rowley Pleads Guilty to Tax Fraud

Source- http://www.justice.gov/tax/2013/txdv13646.htm

WASHINGTON – David P. Rowley, a resident of Jackson, Michigan, pleaded guilty yesterday before U.S. District Judge Denise Page Hood to filing a false individual income tax return, announced Kathryn Keneally, the Assistant Attorney General for the Justice Department's Tax Division, and Barbara L. McQuade, the U.S. Attorney for the Eastern District of Michigan.

According to documents filed with the court, between 1999 and 2009, Rowley owned and operated an inventory business for automobile dealerships known as Kennedy Inventory & Service Inc. (KIS). The business also operated under the names D&P Inventory and Spartan in Ohio Inventory. At Rowley's direction, KIS withheld trust fund taxes, which are the employee portion of Federal Insurance Contributions Act taxes, and employee income tax withholding from his own wages as well as from the wages of the approximately 50-100 employees that it employed at any given time during this period. Also at Rowley's direction, KIS failed to pay over those trust fund taxes to the Internal Revenue Service (IRS). In addition, Rowley failed to timely file Employer's Quarterly Federal Tax Returns for KIS for quarters during 1999 through 2006 and Individual Income Tax Returns for himself for tax years 2002 through 2007.

In March 2008, Rowley filed 32 delinquent employer tax returns for KIS for years 1999 through 2006 in which he falsely stated that the company had paid over its employees’ trust fund taxes to the IRS when it had not. In November 2008, Rowley filed delinquent individual tax returns for himself for 2002 through 2007. On those returns, he falsely reported that KIS had withheld income taxes from his wages. The tax loss to the government from Rowley’s fraud was between $200,000 and $400,000.

Rowley faces a maximum sentence of three years in prison, one year of supervised release, a $250,000 fine and a $100 special assessment. He has agreed to pay restitution of $303,433.12 to the IRS. Sentencing is scheduled for Sept. 5, 2013.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

Court Order Barring Nataki Davis From Preparing Federal Tax Returns for Other

Source- http://www.justice.gov/tax/2013/txdv13655.htm

Tax Preparer Allegedly Inflated Deductions and Credits for Customers

WASHINGTON – The U.S. District Court for the Eastern District of Michigan has issued an order permanently barring Nataki Davis, (formerly known as Nataki Barnes), a Southfield, Mich., tax preparer, from preparing federal tax returns for others for a period of five years, the Justice Department announced today. The court also ordered Davis to mail copies of the court order to all persons or entities for whom she has prepared federal tax returns, amended returns or other federal tax documents or forms since Jan. 1, 2011. Davis consented to the civil injunction order.

Davis operated a business that provided tax return preparation services under the names NKB Tax Services, NKB Tax Services, Etc. and Ready Trans. The complaint states that Davis prepared approximately 1,597 tax returns for tax processing years 2010 through 2012. The Internal Revenue Service (IRS) closed examinations on 52 of those 1,597 tax returns prepared by Davis and 48, or 92%, of those examined returns resulted in additional tax assessments. Many of the returns that Davis prepared for customers contained false deductions and credits, including inflation of deductions for charitable contributions, mortgage interest, real estate and personal property taxes paid and false education credits. Returns also included manipulation of taxpayer data for the purposes of claiming the Earned Income Tax Credit for which the taxpayers would otherwise be ineligible.

The court also issued an order permanently barring Davis's brother Clarence Barnes Jr. from applying for an electronic filing identification number (EFIN) or assisting any other individual or entity in the application for or procurement or use of an EFIN to file a federal income tax return. Barnes consented to this civil injunction order.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

Federal Court Permanently Bars Marvin Binion, his son Marvin Binion II, Binion Sr.'s ex-wife Tonya Hubbard From Preparing Tax Returns for Others

Source- http://www.justice.gov/tax/2013/txdv13653.htm

WASHINGTON – Two federal judges in separate cases entered orders permanently barring Marvin Binion Sr., his son Marvin Binion II, Binion Sr.'s ex-wife Tonya Hubbard and her firm Universal Tax Service LLC from preparing tax returns for others, the Justice Department announced today. The civil injunction orders, to which all defendants consented, were signed by Judge Roger W. Titus and Judge Alexander Williams Jr., of the U.S. District Court for the District of Maryland.

The two government complaints, one against the Binions and one against Hubbard and her firm, alleged that the defendants prepared fraudulent tax returns for customers containing bogus deductions for items like charitable contributions, unreimbursed employee business expenses and other miscellaneous expenses. The lawsuits also alleged that Hubbard, Universal Tax Service LLC and the Binions violated federal law by not signing the returns they prepared for customers and by not placing IRS preparer identification numbers on the returns. All tax preparers are required to place an IRS-issued tax preparer identification number on every federal income tax return they prepare for a customer.

According to the complaints the defendants prepared customer returns using commercial tax software, placed the returns in postage-paid pre-addressed envelopes and instructed customers to sign and mail the returns to the IRS on their own. The suits alleged that defendants did this to hide from the IRS their role in preparing the returns.

The government alleged that Hubbard and the Binions charged customers a return-preparation fee of $300 and that the Binions may have earned as much as $30,000 per day preparing fraudulent returns.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

Federal Court Permanently Enjoins Florida Tax Return Preparer

Source- http://www.justice.gov/tax/2013/txdv13647.htm

WASHINGTON – A federal court in Miami has permanently barred Osvaldo J. Diaz of Coral Gables, Florida, from preparing federal tax returns for others, the Justice Department announced today. The permanent injunction order was signed by Judge Jose E. Martinez of the U.S. District Court for the Southern District of Florida.

The government's complaint alleged that Diaz prepared tax returns that fabricated deductions and credits in an attempt to understate his customers' tax liabilities or inflate his customers' refunds. Specifically, the government alleged that Diaz fabricated business and personal expenses and inflated real estate losses for his customers. According to the complaint, the Internal Revenue Service examined 250 returns prepared by Diaz and found that 93 percent resulted in additional taxes being owed. The government alleged that the tax loss from the returns prepared by Diaz could be tens of millions of dollars.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

Fred Marcus Admits Tax Evasion in New Jersey

Source- http://www.justice.gov/tax/2013/txdv13641.htm

WASHINGTON – The owner of a window installation company located in Mt.Laurel, N.J. admitted today he converted to cash millions of dollars in the company's gross receipts and used the money to pay his workers without withholding employment taxes announced, Paul J. Fishman, U.S. Attorney for the District of New Jersey, and Kathryn Keneally, Assistant Attorney General for the Tax Division.

Fred Marcus, 39, of Camden County, N.J., the owner and operator of Vortex Installations Inc., pleaded guilty before U.S. District Judge Mary L. Cooper in New Jersey federal court to an information charging him with one count of tax evasion.

According to documents filed in this case and statements made in court:

From early 2006 through the end of 2009, Marcus cashed approximately $2.8 million in Vortex Installations' gross receipts at a check casher. Marcus used $1,025,868 of that money to pay cash wages to his workers, which he did not report to the Internal Revenue Service (IRS) and from which he did not withhold employment taxes. From 2006 through 2008, Marcus failed to file IRS Forms 941 – Employer's Quarterly Federal Tax Returns – in which he was required to report the wages paid to his employees. In 2009, Marcus filed false Forms 941, in that he failed to report the cash wages that he paid to Vortex employees.

On the count of tax evasion, Marcus faces a maximum potential penalty of five years in prison and a fine of $250,000, along with restitution to the IRS. Sentencing is scheduled for Sept. 19, 2013.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

Ashraf Hassan-Gouda Sentenced for Tax Fraud

Source- http://www.justice.gov/tax/2013/txdv13640.htm

WASHINGTON – Ashraf Hassan-Gouda, a former resident of Mays Landing, N.J., was sentenced today in U.S. District Court for the District of New Jersey to 541 days in prison, the Justice Department and the Internal Revenue Service (IRS) announced today. The approximately 18 month sentence is for time served. Previously, Hassan-Gouda had pleaded guilty to willfully assisting in the preparation of a false federal individual income tax return for a client.

According to court documents, in 2003, Hassan-Gouda was the owner of Tax World, a tax preparation business located in Atlantic City, N.J. He prepared the false tax return for the client at his business. Hassan-Gouda was indicted in 2007 and fled to Egypt. In 2012, Hassan-Gouda was extradited to the United States from Germany.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com

William Robert Hupman Jr. Pleads Guilty to Tax Fraud

Source- http://www.justice.gov/tax/2013/txdv13627.htm

WASHINGTON – William Robert Hupman Jr., pleaded guilty today to corruptly endeavoring to obstruct or impede the due administration of the internal revenue laws, the Justice Department and the Internal Revenue Service (IRS) announced today. 

 
According to court documents, Hupman managed and controlled Security Concepts LLC, a security alarm company based in Mebane, N.C. Instead of receiving a salary from Security Concepts, Hupman received income by using a Security Concepts debit card to pay his expenses. Despite receiving over $770,000 in such fees between 2007 and 2011, Hupman has not filed an individual income tax return since tax year 2006. 

 
In addition to his failure to comply with his personal income tax responsibilities, Hupman also failed to comply with his employment tax responsibilities at Security Concepts. As the person who managed and controlled Security Concepts, Hupman was responsible for withholding employment taxes and paying them over to the IRS on a periodic basis. Despite the fact that employment taxes were withheld from the wages of Security Concepts employees, Security Concepts has not paid employment taxes and filed the required tax form since the third quarter of 2009. Hupman neither paid over employment taxes nor filed the required tax form for the fourth quarter of 2009 and each of the quarters in 2010 and 2011. He also has not paid the federal unemployment taxes owed or filed the required tax form for years 2009, 2010, or 2011. 

 
Hupman faces a maximum of three years in prision, one year of supervised release and a maximum fine of $250,000. Sentencing is scheduled for Aug. 29, 2013.

************************************************************************

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

www.irsrewards.com