Douglas R. Madsen Chiropactor Sentenced to Prison for Tax Evasion

Source- http://www.justice.gov/tax/2013/txdv13961.htm

WASHINGTON – The Justice Department and the Internal Revenue Service (IRS) announced that today Douglas R. Madsen, a former chiropractor from Ephraim, Utah, was sentenced by the U.S. District Judge Clark Waddoups to 33 months in prison and resitutition of over $500,000 following a conviction for attempted evasion of payment of income tax in the District of Utah.

On Jan. 12, 2012, a jury convicted Madsen of one count of tax evasion. According to court documents, Madsen owed approximately $1.3 million in assessed income tax, interest and penalties for the years 1995 and 1999 to 2004. Madsen’s tax debt had grown, by the trial date, to over $1.7 million, after accrued interest.

The evidence presented at trial established that Madsen used nominee trusts to conceal the ownership of numerous acres of property, ultimately causing the transfer of that property to Grand Scale Inc., a Washington state corporation of which he was the president, vice president, secretary, treasurer and chairman of the board. In addition, the evidence showed that Madsen used other entities to encumber property and cloud equity in that property through use of mortgages and Uniform Commercial Code financing statements. Madsen was previously held in civil contempt by the U.S. District Court for the District of Utah for failure to comply with court orders with respect to an IRS summons.

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Antoine Green Alabama Postal Employee Pleads Guilty for his Involvement in a Fraudulent Tax Refund Scheme

Source- http://www.justice.gov/tax/2013/txdv13959.htm

WASHINGTON – Antoine Green, a former U.S. Postal Service (USPS) employee, pleaded guilty today in U.S. District Court for the Middle District of Alabama to crimes related to his involvement in a stolen identity tax refund fraud scheme, the Justice Department announced.

According to court documents, between November 2011 and October 2012, Green, who was employed as a postal carrier with the USPS in Montgomery, Ala., stole at least 61 U.S. Treasury tax refund checks from his mail route. The checks, which totaled approximately $145,952, were issued by the Internal Revenue Service (IRS) in connection with fraudulent tax returns filed in the names of identity theft victims.

For his involvement in the scheme, Green pleaded guilty to one count of theft of government money and one count of theft of mail by a postal employee. He faces a maximum potential sentence of 15 years in prison and a fine of up to $500,000.

Karena Mondrianh is Permanently Barred From Tax Preparation and Impeding Audits

Source- http://www.justice.gov/tax/2013/txdv13955.htm

Many customers of a Southlake Woman Allegedly Worked Overseas for Defense Contractors

WASHINGTON – The Justice Department announced that yesterday a federal court in Ft. Worth, Texas permanently barred Karena Mondrianh, of Southlake, Texas, from preparing tax returns and from operating a tax-preparation business. Mondrianh consented to entry of the preliminary injunctions without admitting the allegations against her.

In its complaint, the government alleged that Mondrianh prepared fraudulent tax returns understating customers' income by inventing – sometimes without customers' knowledge – false business expenses and by falsely claiming that customers' income was exempt from tax. According to the complaint most of Mondrianh’s customers work overseas for defense contractors. The permanent injunction order was signed by Judge John H. McBryde of the U.S. District Court for the Northern District of Texas.

The complaint further alleged that Mondrianh provided false information to the Internal Revenue Service (IRS) in improper attempts to delay IRS audits of customers. She also allegedly urged a customer to lie to an IRS agent in order to forestall an IRS audit. For more information about this complaint visit www.justice.gov/tax/2013/txdv13690.htm.

Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2013, which can be viewed at www.irs.gov/uac/Newsroom/IRS-Releases-the-Dirty-Dozen-Tax-Scams-for-2013.

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Justice Department Files Suit to Stop Michael I. Turner From Preparing Tax Returns

Source- http://www.justice.gov/tax/2013/txdv13891.htm

WASHINGTON – The Justice Department announced today that the United States has filed a civil injunction suit against Michael I. Turner, of San Diego to stop him from preparing federal tax returns.

The government complaint, filed in the U.S. District Court for the Southern District of California, alleges that Turner, who has prepared returns since at least 2004, has failed to sign or affix a Preparer Tax Identification Number (PTIN) to many of the returns that he has prepared. In addition and according to the government, Turner takes bogus deductions on his customers' returns in order to claim larger refunds for his customers. His customers then recommend Turner as a tax preparer to their friends, which helps Turner to expand his customer base and further increase his own profits. Specifically, the government alleges that Turner claims inflated or fabricated deductions on the Schedule A of his customers' Form 1040 tax returns, claiming that his customers have large non-cash charitable contributions and unreimbursed employee expenses. The complaint also alleges that when Turner's customers are audited, Turner has provided false documents to those customers in an attempt to assist them in substantiating charitable contributions and employee expenses that they did not incur. According to the complaint, however, Turner has instructed his customers not to identify him as their tax return preparer in communications with the Internal Revenue Service (IRS).

The government alleges that Turner continues to prepare tax returns. According to the complaint, Turner applied for a PTIN in 2010, and has prepared at least 68 tax returns for the 2012 tax year using that PTIN.

The government seeks, among other things, that the court bar Turner from acting as a tax return preparer or assisting others in preparing or filing federal tax returns or other tax forms or documents. The government also requests that the court bar Turner from appearing as a representative on behalf of any person or entity before the IRS, and from owning, managing, controlling, working for or volunteering for a tax-return preparation business.

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Tomas Olazabal Owner of New York Construction Company Indicted for Tax Fraud

Source- http://www.justice.gov/tax/2013/txdv13906.htm

WASHINGTON – The Justice Department and Internal Revenue Service (IRS) announced that Tomas Olazabal, of Fresh Meadows, N.Y., was arrested today following his indictment in the U.S. District Court for the Eastern District of New York on Aug. 8, 2013, on multiple tax crimes.

According to the indictment, Olazabal owned Tupac Construction Corp., a construction company in Fresh Meadows. As alleged in the indictment, Olazabal used check cashing services to cash a substantial number of checks paid to his construction company for services between 2007 and 2008. He concealed his check cashing activities from his tax return preparers. Accordingly, the gross receipts represented by the checks negotiated at the check cashers were not included as gross receipts on the company's tax returns.

The indictment alleges that Olazabal filed false 2007 and 2008 corporate income tax returns for Tupac. Olazabal faces a potential maximum sentence of six years in prison and a potential fine of up to $500,000.

A trial date has not been scheduled. An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.

The case was investigated by IRS - Criminal Investigation and is being prosecuted by Trial Attorneys Mark Kotila and Steve Descano of the Justice Department's Tax Division.

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Greene Wylie Sheppard, Sabrina Johnson-Lavant and Chandra Henderson Sentenced for Tax Fraud

Source- http://www.justice.gov/tax/2013/txdv13902.htm

WASHINGTON – The Justice Department and the Internal Revenue Service (IRS) announced that former professional tax return preparers Greene Wylie Sheppard, Sabrina Johnson-Lavant and Chandra Henderson were sentenced this month to serve 56 months, 18 months, and 8 months in prison, respectively, for conspiring to defraud the United States by filing false tax returns in order to receive fraudulently-inflated refunds for their clients. In addition to conspiracy, Sheppard was also sentenced for aggravated identity theft. Sheppard was sentenced on July 11, 2013, and Johnson-Lavant and Henderson were sentenced yesterday.

According to court documents, Sheppard owned and operated Quick Tax, a tax preparation business in Cordele, Ga. He conspired with his employees Johnson-Lavant and Henderson to obtain higher refunds on clients' returns by falsely inflating clients' wages in order to exploit certain tax credits. The co-conspirators sold other people's identifying information to their clients, and these other identities would then be claimed as dependents on their tax returns in order to manipulate the size of the refund. The three return preparers acquired dozens of identities by purchasing them. They maintained notebooks that kept track of the identities and how much clients owed them for the false dependents. Over the course of the conspiracy, which spanned four years, Quick Tax claimed over $400,000 in fraudulent refunds.

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Gary Mach Pleads Guilty to Conspiracy to Defraud The Internal Revenue Service

Source- http://www.justice.gov/tax/2013/txdv13897.htm

WASHINGTON – The Justice Department announced today that Gary Mach, a Palm Desert, Calif. resident who operated Crystal Springs Pool Service (CSPS), pleaded guilty to conspiracy to defraud the Internal Revenue Service (IRS).

According to the plea agreement, beginning around January 2002 and continuing through December 2010, Mach failed to report substantial income he earned from CSPS, a pool servicing business operated throughout Riverside County, Calif. Mach and others established fictitious trusts which they used to receive income and hold assets in an attempt to conceal the assets and income from the IRS.

According to court documents, Mach purported to operate a trust called "Quintessential," and directed that his paychecks be made payable to Quintessential. He also opened a bank account in the name of Quintessential where he deposited CSPS proceeds. Mach admits that he did not report to the IRS any of the income he earned from CSPS between 2002 and 2010 and used Quintessential to conceal income from the IRS. In furtherance of the conspiracy, Mach also attempted to impede an IRS summons issued to a bank for business account records. Mach closed his bank account after the bank complied with the IRS summons.

As stated in the plea agreement, the agreed upon total unreported income for the tax years 2002 through 2010 is $1,410,430 and the total tax due and owing is $270,725. Mach has also agreed that he should be ordered to pay restitution for the amount of total tax due and owing.

Mach's sentencing is scheduled for Nov. 14, 2013, before U.S. District Judge John A. Kronstadt and he faces a maximum penalty of five years in prison, three years of supervised release and a fine of $250,000 or twice the gain or loss resulting from his offense.

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Tyree Davis Indicted for Obstruction of Justice and Tax Fraud

Source- http://www.justice.gov/tax/2013/txdv13849.htm

WASHINGTON – The Justice Department announced today that Tyree Davis Sr. of Flossmoor, Ill., was arrested on an eight-count indictment charging him with obstruction of justice and filing fraudulent multi-billion dollar liens against government employees. The indictment was returned on July 24, 2013, by a federal grand jury in Chicago.

According to the indictment, Davis obstructed justice by sending correspondence threatening to arrest two federal judges: the chief judge of the Northern District of Illinois and the judge who presided over the 2010 tax trial of LaShawn Littrice, whom Davis refers to as his wife. Littrice was convicted by a jury in June 2010 and sentenced to 42 months in prison in December 2010. Davis also filed false liens, titled Notice of Maritime Liens, against both judges and notified others that he had filed the liens. In addition to the two judges, Davis filed false liens against the U.S. Attorney and Clerk of Court for the Northern District of Illinois, an Assistant U.S. Attorney and an Internal Revenue Service-Criminal Investigation Special Agent. All the liens were publicly filed with the Cook County Recorder’s Office and claimed that each individual owed $100 billion. The liens were re-recorded two and three times in order to add property descriptions to them.

An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Davis faces a maximum of 80 years in prison and a maximum fine of $2 million dollars.

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Court Bars Stacy Middleton Tax Return Preparer From Preparing Returns for Others

Source- http://www.justice.gov/tax/2013/txdv13836.htm

Charleston Tax Preparer Filed Returns with Fabricated and Inflated Deductions and Credits to Overstate Tax Refunds

WASHINGTON – The Justice Department announced today that a federal district judge in Charleston, S.C. permanently barred Stacy Middleton from preparing federal income tax returns for others.

According to the government's complaint, Middleton and a second defendant, George Jenkins, prepared federal income tax returns in Charleston through a business named MBM Tax and Accounting Services LLC. As alleged, Middleton prepared returns for his clients that unlawfully understated his clients' income tax liabilities and overstated his clients' refunds through a variety of schemes. The complaint alleged that Middleton prepared returns that unlawfully created fictitious deductions and credits as well as overstating and duplicating existing deductions and credits. The complaint further alleged that Middleton created fraudulent copies of Form 1099 on behalf of customers, creating fake income to enable Middleton to claim the Earned Income Tax Credit on behalf of his clients. According to the complaint, the Internal Revenue Service (IRS) examined 842 returns prepared by Middleton and Jenkins, and over 93 percent of those examinations resulted in an adjustment to their client's tax liability. According to the complaint, the IRS estimated that the U.S. Treasury lost as much as $55 million in revenue on account of Middleton's and Jenkins' misconduct.

Middleton consented to the entry of the injunction. The government's claims remain pending against Jenkins and will be addressed in further court proceedings.

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Justice Department Seeks to Shut Down Ronald Manis Tax Preparer

Source- http://www.justice.gov/tax/2013/txdv13829.htm

WASHINGTON – The Justice Department announced today that it has asked a federal court to bar Ronald Manis of Carbondale, Ill., from preparing tax returns for others. The civil injunction suit, filed in the U.S. District Court for the Southern District of Illinois, alleges that Manis routinely prepares federal tax returns for individuals and corporations improperly claiming deductions that result in his customers understating their federal tax liabilities.

The government complaint also alleges that Manis prepares federal tax returns for his customers, claiming as business expenses his customers' non-deductible personal expenses, including the cost of lavish personal vacations. According to the government complaint, Manis engages in this conduct "in a misguided attempt to mint his reputation as a uniquely skilled and knowledgeable tax return preparer."

In September 2011, Manis pleaded guilty to willfully failing to file his own federal income tax returns for 2003, 2004, 2005 and 2006, and was initially sentenced to probation. In May 2012, his probation was revoked and he was sentenced to three months in prison. According to the government complaint, Manis was released from federal prison on July 20, 2013.

The government suit also alleges that Manis falsely represented himself as a fully licensed Certified Public Accountant to customers and the Internal Revenue Service (IRS) and that Manis illegally used an electronic filing number belonging to a friend to electronically file customers’ returns after the IRS denied Manis's application for an electronic filing number.

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Gurmail Singh was Arrested for Tax Fraud

Source- http://www.justice.gov/tax/2013/txdv13822.htm

WASHINGTON – The Justice Department and Internal Revenue Service (IRS) announced that Gurmail Singh, of Richmond Hill, N.Y., was arrested yesterday following his indictment on July 11, 2013, for multiple tax crimes. The indictment was unsealed yesterday following his arrest.

According to the indictment, Singh owned Fancy and Vicky Construction Co. Inc., a construction company in Richmond Hill. As alleged in the indictment, Singh used check-cashing services to cash more than $2.9 million of checks paid to his construction company for services between 2006 and 2008. He concealed his check-cashing activities from his tax return preparers, and this income was not included as gross income on the company's tax returns. Singh also diverted cash receipts earned by his companies for his own personal use.

The indictment alleges that Singh filed false 2006 and 2007 corporate income tax returns for Fancy and Vicky Construction, failed to file a 2008 corporate income tax return for Fancy and Vicky Construction and failed to file individual income tax returns for 2007 and 2008. Singh faces a potential maximum sentence of nine years in prison and a potential fine of up to $800,000.

A trial date has not been scheduled. An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.

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Angela Myers Sentenced to Federal Prison for Tax Refund Fraud

Source- http://www.justice.gov/tax/2013/txdv13816.htm

WASHINGTON – The Justice Department and Internal Revenue Service (IRS) announced that Angela Myers, a resident of Baton Rouge, La., was sentenced today in the Middle District of Louisiana to 132 months in federal prison for wire fraud, making false claims, subscribing to false tax returns and aggravated identity theft.

Based on the evidence presented during a four-day trial in March 2013, Myers operated "Angie's Tax Service," a tax preparation business located in Baton Rouge Myers electronically filed false claims for tax refunds using the names and Social Security numbers of identity theft victims. Myers filed the identity theft tax returns using a unique preparer identification number assigned to her daughter. Many of the victims were nursing home patients who resided at Port Allen Care Center in Port Allen, La., and who did not have the ability to leave the nursing home.

The evidence also revealed that Myers lied on her own 2007 and 2008 federal income tax returns, failing to report hundreds of thousands of dollars of tax preparation fees that she earned at Angie's Tax Service and used to buy various items, including an RV and a $50,000 investment product.

"This thief victimized vulnerable nursing home patients and stole from all honest taxpayers," said Kathryn Keneally, Assistant Attorney General for the Justice Department's Tax Division. "The severe prison sentence handed down today demonstrates that such crimes will not be tolerated."

"We are very pleased with the sentencing of Angela Myers, many of whose victims were residents of a nursing home," said Richard Weber, Chief of IRS-Criminal Investigation. "The IRS aggressively pursues those that use stolen social security numbers to file false tax returns. This sentence should serve as a reminder that there is a price to pay for scamming innocent people and defrauding the government. Many taxpayers put their trust in return preparers and when that trust is violated, the taxpayers and the tax system suffer."

In addition to the prison sentence, the court ordered Myers to pay $202,685 in restitution to the IRS in addition to $39,030 that was already forfeited in this case.

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Richard R. Whatley Sentenced to Federal Prison for Failing to pay Payroll Taxes to the IRS

Source- http://www.justice.gov/tax/2013/txdv13811.htm

WASHINGTON – The Justice Department and the Internal Revenue Service (IRS) announced today that Richard R. Whatley, a former owner of Alliance Staffing Management Inc. (ASM), was sentenced to 51 months in prison today for willfully failing to account for and pay over employment taxes. Whatley was also ordered to pay $541,513.61 in restitution to the IRS. Whatley appeared before U.S. District Judge David Nuffer in Salt Lake City.

In January 2010, a federal grand jury charged Whatley with five counts of willfully failing to account for and pay over employment taxes, relating to three different employee leasing companies that he allegedly operated and controlled between the years 2001 and 2006. The employee leasing companies included American Employment Group Inc., ASM and Intermountain Consulting Group Inc. The tax loss associated with Whatley's criminal conduct during these years totaled more than $2.3 million. Whatley pleaded guilty in January 2013 to one of the charged counts.

According to the plea agreement, during the 2002 through 2004 tax years, Whatley held an ownership interest in and had the ability to control the finances of ASM, an employee leasing company. Whatley's control included determining the amount of employment taxes that had to be paid over to the IRS and the authority to decide which bills would be paid and which bills would not be paid. As charged in the superseding indictment, in the fourth tax quarter of 2003, Whatley caused the collection of employment taxes from ASM's employees' wages and then willfully failed to pay over $541,513 for the employees' portion of employment taxes to the IRS.

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Harry Neuhoff Owner of Sportswear Distribution Business Pleads Guilty to Tax Evasion

Source- http://www.justice.gov/tax/2013/txdv13807.htm

WASHINGTON – The Justice Department and Internal Revenue Service (IRS) announced today that Harry Neuhoff, a resident of Brooklyn, N.Y., has pleaded guilty to tax evasion.

According to documents filed with the court, Neuhoff was president and an owner of EVA TEES Inc., formerly of Long Island City, N.Y. and presently located in Piscataway, N.J. From approximately 2006 to 2008, Neuhoff manipulated EVA TEES accounts through an accounting software program to delete cash sales from the general ledger accounts maintained on the computer accounting system. As a result, Neuhoff filed false corporate tax returns on behalf of EVA-TEES with the IRS that underreported the gross receipts of EVA TEES. Neuhoff's conduct also correspondingly resulted in his filing of false personal income tax returns with the IRS for those years. According to the documents filed with the court, Neuhoff underreported the gross receipts of EVA TEES through computer manipulations by at least $1.5 million. Sentencing is scheduled for Nov. 8, 2013 before U.S. District Court Judge Edward Korman.

Neuhoff faces a maximum sentence of five years in prison, three years of supervised release, a $250,000 fine and a $100 special assessment. He has agreed to pay restitution to the IRS.

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Alexei Iazlovsky Pleads Guilty to Concealing Foreign Bank Account at Israel-Based on his Tax Return

Source- http://www.justice.gov/tax/2013/txdv13747.htm

WASHINGTON – The Justice Department and Internal Revenue Service, Criminal Investigation (IRS-CI) announced that Alexei Iazlovsky of Potomac, Md., pleaded guilty today in the U.S. District Court for the Central District of California to filing a false tax return for tax year 2008.

According to court documents, Iazlovsky, a U.S. citizen, maintained an undeclared bank account held in the name of a foreign corporation at the Luxembourg branch of an Israeli bank. Iazlovsky owned a corporation that produced documentaries for Russian television stations. A tax return preparer suggested to Iazlovsky that he could reduce his taxes by keeping money out of the United States and diverting payments from his Russian clients to a foreign bank account held in the name of a foreign corporation. Iazlovsky met with a banker from the Israeli bank at a New York hotel to open the Luxembourg account.

According to court documents, Iazlovsky diverted a total of $2.6 million in untaxed payments from his Russian clients to his undeclared bank account in Luxembourg. From 2002 through 2009, Iazlovsky filed false individual and corporate tax returns that failed to report his authority over and ownership of the bank account in Luxembourg. He also omitted the income diverted to and generated by the undeclared account in Luxembourg. Iazlovsky has admitted that the tax loss is more than $400,000.

Iazlovsky is the latest in a series of defendants charged in the U.S. District Court for the Central District of California with failing to report income from undeclared accounts held at Israeli banks.

"Individuals who evade their tax obligations cheat their country and their fellow citizens," said Kathryn Keneally, Assistant Attorney General for the Justice Department's Tax Division. "The Department of Justice is committed to using all of the many available tools to find and prosecute those who hide income and assets in offshore bank accounts, and to pursue the taxes and penalties that are due."

"Offshore tax evasion is a top priority for IRS-CI, and the facts in this case are clear. Earned income was placed into foreign bank accounts for the purpose of committing offshore tax fraud," said Richard Weber, Chief, IRS-CI. "Through our efforts, we are gaining access to more and more information on institutions and individuals involved in offshore tax fraud, and you can expect us to use all of our enforcement tools to stop this abuse."

U.S. citizens and residents who have an interest in, 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 a Report of Foreign Bank and Financial Reports (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.

Iazlovsky has agreed to pay a civil penalty in the amount of 50 percent of the high balance of his undeclared account to resolve his civil liability with the IRS for failing to file FBARs. Iazlovsky faces a maximum prison term of three years and a maximum fine of $250,000.

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Vernon Harrison U.S. Service Mail Carrier Convicted for Involvement With Stolen Identity Refund Fraud Conspiracy

Source- http://www.justice.gov/tax/2013/txdv13760.htm

WASHINGTON – On July 3, 2013, a jury found Vernon Harrison, of Montgomery, Ala., guilty of one count of conspiring to file false claims, eight counts of mail fraud, eight counts of aggravated identity theft and six counts of embezzlement from the U.S. mail, the Justice Department, the Internal Revenue Service (IRS) and the U.S. Postal Service, Office of the Inspector General (OIG), announced today.

According to the evidence presented at the trial, Harrison was a U.S. Postal Service mail carrier who was part of a stolen identity refund fraud conspiracy. Members of the conspiracy used stolen identities to file false tax returns from various locations, including houses and hotels around Birmingham, Ala. and Montgomery. They then had the fraudulently obtained tax refunds generated by those returns sent to debit cards which were subsequently mailed to addresses on Harrison's postal route in Montgomery. In exchange for cash, Harrison stole the debit cards from the mail and provided them to a co-conspirator. Harrison stole, at a minimum, over 100 debit cards from the mail for his co-conspirators.

As was shown at trial, federal agents uncovered substantial evidence of the conspiracy during the execution of search warrants at locations in Montgomery and near Birmingham, including over a hundred envelopes for debit cards that had been mailed to addresses on Harrison's postal route. Soon after, agents also conducted surveillance on Harrison and observed him failing to deliver Turbo Tax cards that were in the mail.

Harrison faces up to 10 years in prison for the conspiracy count, 20 years for each mail fraud count, five years for each mail embezzlement count, and a mandatory two-year sentence for the aggravated identity theft counts. In total, Harrison could be sentenced to up to 216 years in prison. Harrison also could be subject to fines, forfeiture, and mandatory restitution.

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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.

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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.

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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.

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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.

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

www.irsrewards.com