Phillip E. Narum was Sentenced to 48 Months in Federal Prison for Wire Fraud and Tax Offenses

Source- http://www.fbi.gov/phoenix/press-releases/2012/former-marana-resident-sentenced-to-48-months-in-federal-prison-for-wire-fraud-and-tax-offenses

TUCSON, AZ—On September 5, 2012, Phillip E. Narum, 47, formerly of Marana, Arizona, was sentenced by U.S. District Judge David C. Bury to 48 months in federal prison for wire fraud and filing false tax returns. Narum was found guilty at trial on the wire fraud charges. He previously pleaded guilty to the tax charges.

According to evidence presented at trial, Narum was hired in 2004 as an independent contractor at Young and Sons Contracting Inc., a family owned and operated construction firm in Tucson. Between 2005 and 2008, Narum defrauded Young and Sons of approximately $573,000, which he used to make credit card and mortgage payments and to purchase personal items such as a motorhome, multiple dragsters, and dragster parts.

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Bruce Gregory Harrison III was Sentenced to 12 Years in Prison for Payroll Tax Fraud

Source- http://www.justice.gov/opa/pr/2012/September/12-tax-1079.html

Bruce Gregory Harrison III of Greensboro, N.C., was sentenced today to 144 months in prison following his December 2011 conviction for payroll tax fraud and other crimes, announced Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division; Ripley Rand, U.S. Attorney for the Middle District of North Carolina; and Richard Weber, Chief of Internal Revenue Service (IRS) - Criminal Investigation.

Harrison was convicted on a 63-count indictment alleging large-scale payroll tax fraud and failure to file individual income tax returns. The evidence at trial and at sentencing showed that Harrison failed to pay over more than $40 million dollars in federal taxes withheld from the pay of his thousands of employees in the years 2004-2006 and 2009.

“The integrity of our Social Security and Medicare system depends on payroll deductions from honest, hard-working taxpayers being properly paid over,” said Assistant Attorney General Keneally. “The sentence handed down today demonstrates that those who steal the taxes paid by their employees risk lengthy prison sentences, and in the end, will still owe the taxes together with civil penalties.”

“Greg Harrison used a foundation of fraud and deceit to build his reputation as a successful businessman and prominent local citizen,” commented U.S. Attorney Rand, “but appearances, no matter how polished, cannot overwhelm the truth. The substantial sentence handed down today shatters the Harrison myth and represents justice appropriate to his shameless thievery.”

“Mr. Harrison is being held accountable today because he defrauded his employees and attempted to conceal his fraud by lying to the IRS” said Chief Richard Weber, IRS - Criminal Investigation. “He used employee taxes for personal gain which resulted in the significant loss of tax revenue to the United States government and the potential loss of future Social Security or Medicare benefits for the employees. IRS - Criminal Investigation is committed to vigorously pursuing those who violate employment tax laws.”

According to the trial evidence and other documents filed in the case, Harrison did business under various corporate names including U.S.A. Staffing and Compensation Management Inc. He owned or controlled temporary staffing companies operating in at least nine states. Harrison’s staffing companies were headquartered in Guilford County, N.C., and contracted with client businesses to provide temporary workers. Harrison’s companies promised to assume full responsibility for the payment of wages and the withholding and transmitting of taxes to the IRS for those employees. Instead, Harrison failed to account for and pay over in excess of $40 million in federal payroll taxes for the employees of those companies. The evidence at trial showed that Harrison caused false bank statements to be presented to auditors to conceal the nonpayment of the payroll taxes.

Harrison was also convicted of corruptly endeavoring to obstruct the IRS by means of false statements to IRS revenue officers. Evidence established he had used company funds to purchase personal residences, to buy a yacht and to finance commercial motion pictures, including National Lampoon’s Pucked andHome of the Giants. Harrison was also convicted of failing to timely file his own income tax returns for 2004, 2005 and 2006.

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William Scott Dion was Sentenced to Prison for Conspiracy to Obstruct and Impede the IRS

Source- http://www.justice.gov/opa/pr/2012/September/12-tax-1086.html

A federal judge in Worcester, Mass., sentenced William Scott Dion today to 84 months in prison for conspiring to defraud the United States, and for obstructing the Internal Revenue Service (IRS), the Justice Department and IRS announced. U.S. District Judge F. Dennis Saylor also ordered Dion to pay restitution in the amount of $3 million.

On April 2, 2012, a federal jury convicted Dion and Catherine Floyd, both of Sanbornville, N.H., and Charles Adams, of Norwood, Mass., for conspiracies to defraud the United States through the promotion and use of multiple tax fraud schemes. The jury convicted all three of conspiracy to defraud the IRS by promoting an “under the table” payroll scheme. Dion and Floyd were also convicted for conspiracy to defraud the IRS through the use of an “underground warehouse banking” scheme designed to conceal customer income and assets from the IRS. Floyd and Dion were also convicted separately for corruptly endeavoring to obstruct the IRS’s ability to determine their own income. Adams was separately convicted of tax evasion.

According to the evidence presented at trial, Dion, Floyd and Adams ran a payroll tax scheme in order to pay employees “under the table” without properly accounting for, withholding, and paying over to the IRS the payroll taxes required by law. The three promoted the payroll scheme to employers and individuals who wanted to avoid payment of employer payroll taxes and individual payroll taxes. The three ran the payroll scheme under three different names: Contract America, Talent Management and New Way Enterprises. Approximately 150 individuals subscribed to the payroll scheme and in excess of $2.5 million in unreported wages and compensation were paid through the system.

The evidence at trial also established that Dion and Floyd conspired to defraud the United States by promoting and operating an “underground warehouse banking” scheme which helped subscribers conceal income and assets from the IRS. According to the evidence, the warehouse scheme operated under three different names: Your Virtual Office, Office Services and Calico Management. As part of the warehouse banking scheme, the defendants maintained accounts at several banks and used the accounts to deposit and commingle business receipts and other funds received from subscribers in order to mask the true ownership of the funds. According to evidence presented at trial, more than $28 million in deposits were made into the various bank accounts used in the scheme.

In August 2009, the three defendants were indicted with four other individuals relating to the promotion and use of these schemes. On Dec. 9, 2011, prior to trial, Gail and Myron Thorick of West Warwick, R.I., pleaded guilty to conspiring to defraud the United States by helping operate the “warehouse banking” scheme, and for filing false tax returns. On that same date, Gary Alcock pleaded guilty to conspiracy by using the payroll scheme, as well as to tax evasion and willful failure to file tax returns. On Jan. 24, 2012, Kenneth Scott Alcock pleaded guilty to conspiracy relating to the payroll scheme and to one count of tax evasion. All four defendants are awaiting sentencing.

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Scott A. Waage Allegedly Worked With CPA To Help Clients Evade Income Taxes and Circumvent Pension-Plan Rules

Source- http://www.justice.gov/tax/2012/txdv121054.htm

WASHINGTON – 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.

The injunction order requires Waage to give the government a list of all clients who used his tax planning or tax preparation services since 2001. Waage also must send his former clients notice of the injunction order.

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Russell Pike was Convicted of Tax Evasion for 2006; Evaded Taxes Due on Over $7.9 Million of Income

Source- http://www.justice.gov/tax/2012/txdv121051.htm

WASHINGTON “ Russell Pike, 50, of Las Vegas, the former CEO of a Nevada sports energy drink company, Xyience Inc., was sentenced today by U.S. District Judge James C. Mahan to 52 months in prison for his April 2012 conviction for tax evasion, Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division and U.S. Attorney for the District of Nevada Daniel G. Bogden announced today.

On April 2, 2012, following a bench trial, Pike was convicted of one count of tax evasion for 2006 in which he evaded taxes due on over $7.9 million of income. According to evidence presented at trial, Pike founded Xyience Inc., which manufactured, marketed and sold sports energy drinks, most notably, Xenergy, which was sold in over 45,000 stores throughout the United States. Upon the inception of Xyience in 2004, Pike received at least 12 million shares of Xyience stock. During 2006, Pike sold over 4.4 million shares of his Xyience stock for approximately $7.9 million, which included a sale in November 2006 of over three million shares to an investor for $5 million. In early 2007, Pike requested that the investor change the date of the stock purchase agreement from 2006 to 2007, so that Pike could avoid paying taxes for 2006.

The evidence also established that during 2006, Pike expended millions of dollars to sustain his lavish lifestyle, drive luxury cars and bet millions of dollars at local sports books. Furthermore, Pike made payments on a 2005 Lexus SUV and 2005 Land Rover that were held in the name of a nominee. Also in 2006, Pike used a nominee to purchase a 2007 Mercedes Benz SL55 AMG for $151,614.

In addition to 52 months of prison, Judge Mahan sentenced Pike to three years of supervised release with a special condition that he pay $1,189,773 in restitution to the Internal Revenue Service (IRS).

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

Source- http://www.justice.gov/tax/2012/txdv121043.htm

WASHINGTON – 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.

Sentencing is scheduled for Jan. 18, 2013.

“This prosecution reflects the continuing commitment of the United States Department of Justice, including my office and the Tax Division, to identify, investigate and prosecute individuals who fail to abide by well-established obligations to report and pay on their tax indebtedness,” said James L. Santelle, U.S. Attorney for the Eastern District for Wisconsin. “In combination with the Internal Revenue Service, we are committed to enforcing the tax laws fairly and even-handedly, and the jury’s verdict in this case appropriately reflects the understanding of all law-abiding citizens that underreporting income and failing to report foreign bank accounts will not be tolerated.”

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Henrik Sardariani was Sentenced to 10 Years in Federal Prison for Committing Multi-Million-Dollar Real Estate and Loan Fraud

Source- http://www.fbi.gov/losangeles/press-releases/2012/glendale-man-sentenced-to-10-years-in-federal-prison-for-committing-multi-million-dollar-real-estate-and-loan-fraud

RIVERSIDE, CA—A Glendale man has been sentenced to 10 years in federal prison for orchestrating a loan fraud scheme that netted him and his associates well over $5 million in less than eight months.

Henrik Sardariani, 44, was sentenced yesterday by United States District Judge Virginia A. Phillips, who also ordered the defendant to pay $5.422 million in restitution to his victims and a $100,000 criminal fine.

Sardariani previously admitted that he had defrauded private money lenders by falsely assuring them that the loans they were making were safe when, in fact, he had no intention of paying the loans back and did not own the properties he had pledged as collateral.

In determining the sentence, Judge Phillips noted the complexity of Sardariani’s criminal conduct, which included creating false real estate documents with cut-and-paste notarizations and falsifying government records to hide problems in Sardariani’s background that would have raised red flags for the lenders. A victim who spoke at yesterday’s sentencing hearing summed up Sardariani’s crimes as robberies with fake documents instead of a gun.

Henrik Sardariani has been in custody since December 21, 2010, when he and his brother, Hamlet Sardariani, 42, were arrested by special agents with the Federal Bureau of Investigation and IRS-Criminal Investigation. Hamlet Sardariani pleaded guilty in June (see: http://www.justice.gov/usao/cac/Pressroom/2012/078.html).

Henrik Sardariani pleaded guilty in January to conspiracy, wire fraud, and engaging in unlawful monetary transactions, admitting that he falsified numerous documents to obtain more than $5 million in loans. To obtain one of the loans, Sardariani fraudulently claimed to be the president of the company that actually owned a property used as collateral, and he created false corporate records to maintain that pretense. Sardariani also admitted that he had created fraudulent property records to make it appear to the lenders that prior loans secured by the properties had been paid off and that, therefore, the new loans being made by the victim lenders were fully secured. The fraudulent reconveyances bore forged and fraudulent signatures of notaries public and fraudulent stamps of the notaries public.

Sardariani also admitted that in relation to another loan, he falsely told the lender that the loan was needed only briefly to extend a pre-existing escrow related to the purchase of a hospital and would be returned to the victim-lender at the close of the pre-existing escrow less than one month later. In fact, as Sardariani admitted, he did not intend to use the loan proceeds in connection with the purchase of a hospital, nor did he intend to leave the money untouched in the escrow account. Sardariani used the loan proceeds to place bets on horse races. After the lender wired $2.5 million to the escrow account that Sardariani had designated, Sardariani instructed the escrow officer to wire the funds to a Hong Kong bank account to fund the gambling. The escrow officer, Wanda Tenney, who was also charged in the case, pleaded guilty to conspiracy on November 30, 2011. Sardariani’s gambling partner, Christopher Woods, who was charged with money laundering in a related case, has also pleaded guilty.

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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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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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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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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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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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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. Saldaña 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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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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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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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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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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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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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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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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