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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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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Frederick R. Green Indicted For Tax Fraud And Identity Theft

Source- http://www.justice.gov/usao/flm/press/2012/aug/20120801_Green.html

Fort Myers, FL - A federal grand jury has returned an indictment charging Frederick R. Green (33, Naples) with making false claims against the government, fraudulently using access devices, aggravated identity theft, fraudulently using fifteen or more access devices, and stealing government property. If convicted, Green faces a maximum penalty of five years in federal prison for each of the five false claim charges. He faces up to ten years in federal prison for each of the charges of fraudulently using access devises, as well as the theft of government property charge. For the aggravated identity theft charge, Green faces a mandatory penalty of two years in federal prison. The indictment also notifies Green that the United States intends to forfeit a Volvo and a Dodge Charger, which are alleged to be traceable to proceeds of the offenses.

According to the indictment, from January 20, 2012 through July 12, 2012, Green knowingly prepared and filed five false income tax returns with the Internal Revenue Service seeking tax refunds. He also possessed fifteen or more unauthorized access devices. Green allegedly used one of the unauthorized access devices, a debit card, to obtain more than $1,000. Green allegedly obtained the debit card by unlawfully using the identification of another person.

An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.

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Member of the Philadelphia La Cosa Nostra Family Gaeton Lucibello Pleads Guilty to Racketeering Conspiracy

Source- http://www.justice.gov/opa/pr/2012/August/12-crm-971.html

WASHINGTON – Gaeton Lucibello, 59, of Philadelphia, pleaded guilty today to participating in a racketeering conspiracy involving extortion and illegal gambling, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and George Venizelos, Special Agent in Charge of the FBI’s Philadelphia Division.

At the plea hearing before U.S. District Judge Eduardo C. Robreno of the Eastern District of Pennsylvania, Lucibello pleaded guilty to conspiring to conduct and participate in the affairs of the Philadelphia La Cosa Nostra (LCN) Family through a pattern of racketeering activity. He admitted to the court that he assisted in shaking down a bookmaker for “street tax” payments and operated two illegal video poker machine businesses in furtherance of the racketeering conspiracy. His sentencing is scheduled for Nov. 26, 2012.

Lucibello was among 14 members and associates of the Philadelphia LCN Family charged with crimes involving racketeering conspiracy, extortion, loan sharking, illegal gambling, witness tampering, and theft from an employee benefit plan in a third superseding indictment returned by a federal grand jury in Philadelphia on July 25, 2012. The other defendants charged in the 52-count third superseding indictment included Philadelphia LCN Family boss Joseph Ligambi, Philadelphia LCN Family underboss Joseph Massimino, George Borgesi, Martin Angelina, Anthony Staino Jr., Damion Canalichio, Louis Barretta, Gary Battaglini, Robert Verrecchia, Eric Esposito, Robert Ranieri, Joseph Licata and Louis Fazzini.

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Luis Ernesto Flores Rivera Pleads Guilty In Drug Money Laundering Case

Source- http://www.justice.gov/usao/cac/Pressroom/2012/103.html

LOS ANGELES – A Mexican businessman pleaded guilty today in federal court to conspiring with the owners of a Los Angeles-area toy wholesaler to launder thousands of “narco dollars” for drug trafficking organizations in Mexico.

Luis Ernesto Flores Rivera, 54, of Guadalajara, Mexico, faces up to 20 years in prison after pleading guilty to one count of conspiring to launder financial instruments. As a result of today’s guilty plea, Flores becomes the first defendant to be convicted in Los Angeles on money laundering charges arising from this type of scheme, which is commonly referred to as a “black market peso exchange.”

Flores was among eight defendants, including Woody Toys in the City of Industry, indicted in April by a federal grand jury for allegedly using “structured” cash deposits in the United States to launder illicit proceeds generated by drug trafficking organizations based in Mexico and Colombia. By “structuring” deposits so that no single transaction exceeds $10,000, money launderers hope to avoid unwanted attention from authorities, even though their total deposits are more than $10,000. Federal law requires that require any cash transaction over $10,000 to be reported to authorities.

According to his plea agreement, between 2008 and 2011, Flores conspired with Woody Toys to launder between $70,000 and $120,000.

“Money laundering is an nefarious practice that plays an integral role in narcotics trafficking,” said United States Attorney André Birotte Jr. “Here, Mr. Flores stooped to using children’s merchandise as part of a scheme to hide illegal proceeds – a practice that serves to demonstrate how desperate drug trafficking organizations are to evade law enforcement’s efforts to cut off their flow of money.”

As part of the money laundering scheme, the indictment in the case alleges that foreign toy retailers in Colombia and Mexico contacted currency brokers to buy discounted U.S. dollars, which they would use to purchase merchandise from Woody Toys. The dollars being sold were allegedly proceeds from illegal drug sales that had been deposited into Woody Toys’ accounts or had been delivered to the business in the form of bulk cash. To complete the circle, the Colombian and Mexican pesos used by the foreign toy retailers to purchase the discounted U.S. dollars were remitted by currency brokers to drug trafficking organizations.

“Those who conspire to help launder profits for drug trafficking organizations should be on notice there will be a high price to pay for enabling these dangerous criminal enterprises,” said Claude Arnold, special agent in charge for Homeland Security Investigations (HSI) Los Angeles. “HSI will continue to aggressively target individuals and businesses whose actions are contributing in no small way to the devastation wrought by the international drug trade.”

Leslie P. DeMarco, Special Agent in Charge of IRS-Criminal Investigation’s Los Angeles Field Office, stated: “Mr. Flores attempted to put illegally generated ‘narco dollars’ into the legitimate financial system by structuring his cash deposits, and then he used that tainted money to purchase toys from Woody Toys. This is money laundering and it will not be tolerated by the federal government. IRS-Criminal Investigation is working hard to ensure criminals do not use the United States banking system to legitimize their illegal profits.”

DEA Acting Special Agent in Charge Briane M. Grey commented: “This investigation has brought to light the extreme methods used by drug dealers to hide their illegal profits, and how the complex web of drug trafficking reaches well beyond the neighborhood drug seller.”

According to the indictment in this case, Woody Toys took in approximately $3 million in cash between 2005 and December 2011 without filing the required forms with the government. During that same time, Bank of America records show that another $3 million in structured, out-of-state cash was deposited into Woody Toys’ accounts at the bank.

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Michael Lavery Pleads Guilty to Filing a False Claim for Tax Refund

Source- http://www.justice.gov/tax/2012/txdv12956.htm

WASHINGTON – Michael Lavery, a resident of Sandy, Utah, pleaded guilty yesterday for presenting a false claim to the United States, the Justice Department and Internal Revenue Service (IRS) announced. Lavery appeared before U.S. Magistrate Judge Paul M. Warner in Salt Lake City.

According to the plea agreement, in February 2009, Lavery filed a false joint 2008 income tax return claiming an income tax refund of $249,373. Lavery’s false claim was based on the use of fictitious Forms 1099-OID, Original Issue Discount. Lavery created the fictitious Forms 1099-OID and filed the false tax return with the assistance of others.

The plea agreement further states that in February 2009, after receiving an income tax refund of $249,373, Lavery purposely withdrew the refund from his bank in amounts of $10,000 or less so that the bank would not file a Currency Transaction Report.

Lavery faces a potential maximum sentence of five years in prison and a fine of up to $250,000.

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Sean Roberts and Nadia Roberts of Tehachapi Were Sentenced to Prison for Hiding Assets in Secret Bank Accounts Around the World

Source- http://www.justice.gov/tax/2012/txdv12953.htm

WASHINGTON – Sean Roberts and Nadia Roberts of Tehachapi, Calif., were sentenced today before U.S. District Court Chief Judge Anthony W. Ishii in Fresno, Calif., to 12 months and 1 day in prison for hiding millions of dollars in secret offshore bank accounts in Switzerland and other banks around the world. The Roberts were also ordered to pay restitution to the Internal Revenue Service (IRS) in the amount of $709,675, and to pay more than $2.5 million to resolve their civil liability with the IRS for failing to file the required Reports of Foreign Bank and Financial Reports (FBARs).

According to court documents and statements made in court, Sean and Nadia Roberts filed false individual U.S. income tax return for 2004 through 2008 in which they failed to report that they had an interest in or a signature authority over a secret Swiss financial account at UBS, which was subsequently transferred to the Swiss branch of a Liechtenstein bank. They also failed to report several other foreign accounts in the Isle of Man, Hong Kong, New Zealand and South Africa. The Roberts failed to report any income earned on the foreign accounts and falsely deducted millions of dollars in transfers from their domestic business to the Swiss bank accounts on their corporate tax returns. The false deductions allowed the Roberts to under-report their income on their individual income tax returns. The Roberts previously operated the National Test Pilot School (NTPS) in Mojave, Calif. NTPS is a non-profit educational institute that trains test pilots from domestic and foreign aerospace industries and governments. The Roberts also owned and operated Flight Research Incorporated, which owns and maintains most of the aircraft used by NTPS.

Based on court records, in or about 1991, the Robertses opened a bank account at an Isle of Man branch of a United Kingdom bank, in the name of nominee entity Interline Trade Associates Limited. From at least 2002 through 2004, the Robertses transferred funds from their company, Flight Research Incorporated of Mississippi (FRI Mississippi), to the Interline account, and caused the transfers to be falsely deducted as interest payments on corporate income tax returns as a sham aircraft loan.

In or about 1995, according to court documents and statements made in court, the Robertses, with the assistance of a UBS banker, established an account at UBS in Switzerland held in their own names. In 2004, the Robertses, with the assistance of the operator of a Swiss wealth management and tax advisory business, acquired a nominee Hong Kong entity called Excalibur Investments Limited, and opened a new UBS account in Excalibur’s name. In July 2004, the Robertses closed the UBS account in their own names and transferred the assets to the nominee Excalibur UBS account. In February 2005, the Robertses also closed their Interline account and transferred the assets to the Excalibur UBS account. From 2004 through 2008, the Robertses transferred more than $1.2 million from FRI Mississippi to the Excalibur UBS account, and caused the transfers to be falsely deducted as interest payments on corporate income tax returns as a sham aircraft loan.

Court records also established that, in or about May 2008, the Robertses closed their Excalibur UBS account and transferred over $4.8 million to an account in Excalibur’s name at a Swiss branch of a Liechtenstein bank. This was done after the Robertses learned that UBS was under investigation by U.S. authorities and that they should leave UBS to ensure the continued secrecy of their account. In 2008, the Robertses transferred more than $1.4 million from FRI Mississippi to the Excalibur account at the Liechtenstein bank, and again caused the transfers to be falsely deducted on a corporate income tax return. Also in May 2008, the Robertses opened a bank account in the name of Modest Winner, a nominee Hong Kong entity, at the Liechtenstein bank. In 2008 and 2009, the Robertses transferred funds from another of their entities, Tisours, LLC, to that Modest Winner account. In 2009, the Robertses transferred that account to a bank in Hong Kong. The Robertses also maintained numerous undeclared foreign bank accounts in New Zealand and South Africa held in their own names. Many of the financial transactions were done with the assistance of the same operator of the Swiss wealth management and tax advisory business.

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Rafael Duran Garcia Pleads Guilty In Fraudulent Tax Refund Scheme

Source- http://www.justice.gov/usao/cae/news/docs/2012/07-2012/07-30-12GarciaGuiltyPlea.html

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

www.irsrewards.com