Former IRS Employee involved on Tax Refund Scheme.

FORMER IRS EMPLOYEE AND WIFE SENTENCED IN D.C. PROPERTY TAX REFUND FRAUD SCHEME

Fraudulently Obtained Nearly $9 Million in D.C. Government Checks;
Used Funds to Purchase at Least Four Jaguars, a Townhouse and Vacations to the Bahamas.

Greenbelt, Maryland—U.S. District Judge Alexander Williams, Jr. sentenced former IRS employee Robert O. Steven, age 55, of Edgewater, Maryland, today to 46 months in prison followed by three years of supervised release, and his wife Patricia A. Steven, age 73, of Harwood, Maryland, to 70 months in prison followed by three years of supervised release, for receipt of stolen property and conspiracy to commit money laundering in connection with a property tax refund scheme in which over $48 million were stolen from the District of Columbia Office of Tax and Revenue, announced United States Attorney for the District of Maryland Rod J. Rosenstein and U.S. Attorney for the District of Columbia Jeffrey A. Taylor.

Judge Williams also ordered that Robert Steven and Patricia Steven each pay $8,833,310.32, and, in order to satisfy such money judgment, to forfeit three Jaguar cars, two residences, jewelry and monies held in four bank accounts.

U.S. Attorney Rod J. Rosenstein stated, “This case is particularly egregious because Robert Steven was an IRS employee when he joined in this conspiracy to steal millions of dollars from D.C. taxpayers and spend the money on luxury items, and his wife Patricia Steven spent over 16 years laundering almost $9 million into a bank account she controlled with her husband. We seek the forfeiture of all criminal proceeds and property purchased with stolen money because victims deserve restitution and criminals must not be permitted to profit from their crimes.”

“Money laundering is not a victimless crime. The underground, untaxed economy harms the entire nation’s economic strength. IRS-Criminal Investigation is united with the rest of the law enforcement community in our resolve to financially disrupt criminal organizations that commit crimes against our society and economy,” said C. Andre' Martin, Internal Revenue Service-Criminal Investigation Special Agent in Charge.

According to court documents, Robert Steven was employed with the IRS since 1975. At the time of his arrest, Steven’s position was Division Director, Modernization Information Technology Systems, and his office was located at the IRS National Office in New Carrollton, Maryland.

According to the plea agreements, Patricia Steven first met Harriette Walters, a former manager within the District of Columbia Office of Tax and Revenue, in the mid-1970s. By the late 1980's, Harriette Walters proposed that Patricia Steven deposit a check drawn on a District of Columbia government bank account and made payable to Patricia Steven. Walters explained that Steven would be allowed to keep a portion of the proceeds from the check, but would have to return a substantial portion to Walters. Despite knowing that Walters obtained the check fraudulently, Patricia Steven agreed and deposited the first check.

Robert and Patricia Steven opened a business that eventually developed into a clothing design business called “Bellarmine Design.” Bellarmine Design never grossed more than $15,000 in a single year. From 1990 to 2007, Patricia Steven and Harriette Walters made 67 deposits of fraudulently obtained District of Columbia government checks or cash proceeds from the scheme into a Bellarmine Design checking account maintained by Steven and Patricia Steven. The individual checks ranged in amounts from a handful of initial deposits over $4,000 each, to subsequent deposits of up to $490,000. Patricia Steven also transferred at least $344,700 to Harriette Walters.

Patricia and Robert Steven transferred at least $1,709,500 of these funds into another bank account used primarily by Robert Steven. Using these funds, Robert and Patricia Steven purchased at least four Jaguar cars, a townhouse located in Edgewater, Maryland and multiple vacations to the Bahamas.

Harriette M. Walters, age 52, of Washington, D.C., pleaded guilty in the U.S. District Court for the District of Columbia and faces a maximum sentence of 20 years in prison for wire fraud and money laundering conspiracy; 10 years for District of Columbia tax evasion; five years for federal tax evasion; and an order to pay restitution in the amount of $48,115,419.09. U.S. District Judge for the District of Columbia Emmet G. Sullivan has scheduled her sentencing for March 25, 2009 at 11:00 a.m. Alethia O. Grooms, age 52, of Clinton, Maryland and Samuel Earl Pope, age 61, of Washington, D.C. also pleaded guilty to their participation in the scheme. Judge Sullivan scheduled their sentencing for February 24 and 26, 2009.

Jayrece Turnbull, age 34, of Bowie, Maryland, who is Harriette Walters’ niece, pleaded guilty in the U.S. District Court for the District of Maryland in Baltimore to her participation in this tax refund scheme in which she deposited over $24 million in fraudulently obtained government checks into accounts she controlled. She faces a maximum sentence of 10 years in prison for receipt of stolen property; 20 years in prison and a fine of $500,000 or twice the value of the transactions involved, whichever is greater, for conspiracy to commit money laundering; 30 years for mail fraud; and five years and a fine of $250,000 or twice the gain or loss, whichever is greater, for tax evasion. Judge Williams has scheduled her sentencing for February 4, 2009 at 9:30 a.m.

Judge Williams sentenced Ricardo R. Walters, age 33, of Ft. Washington, Maryland, on July 23, 2008 to 78 months in prison for receipt of stolen property and conspiracy to commit money laundering. Judge Williams sentenced Richard Walters, age 49, of Bowie, Maryland, who is Harriette Walters’ brother, on November 4, 2008 to 51 months in prison for receipt of stolen property and conspiracy to commit money laundering in connection with this scheme.

Marilyn Yoon, age 40, of Derwood, Maryland; Walter Jones, age 33, of Essex, Maryland; and Connie Alexander, age 53, of Bowie, Maryland have also pleaded guilty to their participation in the scheme. Yoon, the next defendant to be sentenced, faces a maximum sentence of 10 years in prison and a $250,000 fine for possession of property obtained by fraud at her sentencing scheduled for December 11, 2008 at 1:30 p.m. Walter Jones faces a maximum sentence of 20 years in prison and a fine of $500,000 or twice the value of the transactions involved, whichever is greater, for conspiracy to commit money laundering at his sentencing on January 5, 2009. Alexander faces a maximum sentence of 10 years in prison for receipt of stolen property and 20 years in prison for conspiracy to commit money laundering at her sentencing scheduled by Judge Williams for February 12, 2009.

United States Attorneys Rod J. Rosenstein and Jeffrey A. Taylor thanked the Federal Bureau of Investigation; the Internal Revenue Service - Criminal Investigation; the Inspector General’s Office for the District of Columbia; the District of Columbia Office of Tax and Revenue, Criminal Investigation Division; the Treasury Inspector General for Tax Administration; and the District of Columbia Office of the Chief Financial Officer, Office of Integrity and Oversight for their investigative work. Mr. Rosenstein commended Assistant United States Attorneys Jonathan Su and Deborah Johnston from the District of Maryland and Assistant United States Attorneys Timothy Lynch and David Johnson from the District of Columbia, who are prosecuting the case.

Tax Evasion with no paper trail.

The IRS has estimated that $50.0 billion in U.S. tax revenue is lost to evasion annually. Based on data showing the value of high-net-worth individuals and the proportion of their portfolios held offshore, $255.0 billion in worldwide tax revenue is lost annually from U.S. Citizens, and more than $400.0 billion from companies Blaming Undocumented Immigrants guilty of the "outright of Tax Evasion. We need a new IRS commissioner that respects the rule of law and understands that tax reform is needed to fix the problems in the tax code.
The misguided initiative, which would require U.S. financial institutions to automatically report the interest paid to foreign investors, is contrary to U.S economic interests. Faced with a loss of privacy, foreigners will take their money out of American banks, meaning less loan money available for families and businesses.

Fiscal deficits are ballooning now that America and Europe are paying for auto bailouts and stimulus packages, so you'd think their governments would be keener than usual to crack down on tax cheats for the extra billions in revenue it could bring in. They are, but with glacial zeal.

Liechtenstein signed an agreement with U.S. authorities on Monday in which it would, starting Jan. 1, 2010, provide information on U.S. banking clients who are being investigated for dodging tax. The tiny Alpine principality is renowned for allowing the world's wealthy to hide their money and (for some) to dodge the tax man.

Yet while this all sounds like good news, it is still miles away from the easy information sharing that's needed to help stop tax evaders. The so-called Tax Information Exchange Agreement that Liechtenstein has signed is notoriously difficult to use: a similar agreement between the island of Jersey and the United States was signed in 2002, yet has been used only four times.

The problem is that American authorities need to be armed with substantial evidence on a banking client before Liechtenstein will hand over any information, and that is nearly impossible considering that most tax evaders work hard to ensure they leave no paper trail. A spokesman for the principality told Forbes.com that "fishing expeditions," in which U.S. authorities would seek significant amounts of information in order to identify tax evaders, would not be possible.

Richard Murphy Founder of tax consultancy Tax Research, said Monday's agreement would at least help act as a deterrent to wealthy people who were looking for a place to hide their money from the U.S. Internal Revenue Service or other tax agencies: they may instead opt for Dubai, Singapore or Switzerland. The move also puts pressure on Switzerland to sign a similar agreement. "It's a symbolic move and it's a disincentive, but it's not going to be used that often," he said.

More significant would be the passing of a law that calls for full automatic information exchange from offshore tax havens. The European Union published its revised savings tax directive on Nov. 13, which proposes just that, and while it could still be years before a law is finally passed, that proposal has the support of Europe's Council of Finance Ministers.

Undocumented Workers do not paid taxes? Sounds familiar to you?.

Undocumented Immigrants pay more in taxes than they receive in public services and assistance, a Wall Street Journal editorial argued. In addition to paying sales taxes, most immigrants pay federal and state income taxes as well as property taxes, which are factored into housing rental rates. Yet they often aren’t eligible to receive many of the benefits those taxes pay for. In fact, payroll taxes paid by Undocumented Workers are helping keep Medicare and Social Security solvent. As the editorial noted: “The Social Security actuaries recently calculated that over the next 75 years immigrant workers will pay some $5 trillion more in payroll taxes than they will receive in Social Security benefits.”Several States also makes money from Undocumented workers, Like the Kansas City Star reported. It requires them to pay state income taxes but refuses to refund any overpayments if the Social Security numbers they use aren’t accurate. What a deal. Let's see the other page of the book.

Herndon Man Pleads Guilty to $3M Embezzlement and Tax Evasion. According to the statement of facts, Koger never filed personal income tax returns for the years 2003-2006 and evaded a total of $775,273 in federal income taxes.

(Herndon, VA ) - Jeffrey S. Koger, age 39, of Herndon, Virginia, pled guilty today to wire fraud and income tax evasion. Dana J. Boente, United States Attorney for the Eastern District of Virginia; Assistant Attorney General Nathan J. Hochman of the United States Department of Justice’s Tax Division; C. André Martin, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C. Field Office; and Jeffrey Irvine, Special Agent-in-Charge of the United States Secret Service’s Washington Field Office made the announcement after the plea was accepted by United States District Judge Leonie M. Brinkema.

Sentencing has been set for February 6, 2009. Koger faces a maximum penalty of 25 years imprisonment, $500,000 in fines, full restitution and three years of supervised release.

According to a statement of facts filed with his plea agreement, Koger was the Chief Financial Officer for Koger Management Group (KMG), which was the property management company for approximately 400 homeowners’ associations. Between 2003 and 2006, KMG had a bank account that received dues from homeowners that KMG then distributed into the associations’ individual accounts. On approximately 140 occasions, Koger diverted funds intended for the associations’ accounts into his personal accounts and that of an account for an unrelated business, Tri-Fitness in Annandale, Virginia, for which he was also the chief financial officer. During the period of time that Koger was embezzling the money, he invested at least $733,000 into a restaurant, Jordan’s 8, in Washington, D.C., spent almost $500,000 on remodeling his home and the Tri-Fitness facility, and made down payments of $60,000 on a house in New Mexico and $40,000 on a Corvette.

This case was investigated by the Internal Revenue Service Criminal Investigation and the Secret Service, with assistance from the Fairfax City Police Department, the Alexandria City Police Department, and the Federal Bureau of Investigation. Assistant United States Attorney Jack Hanly and Trial Attorney Caryn Mark of the Department of Justice’s Tax Division are prosecuting the case on behalf of the United States

Jobs that Undocumented Immigrants Won't do.

Remember Lincoln quote: You can fool some of the people all of the time and all of the people some of the time, but you can't fool all of the people all of the time."

We are hearing from Nativists, Anti Immigrants reports of employers using Undocumented Immigrants or instances of Undocumented Immigrants engaged in criminal activity like committing fraud, Tax Evasion, stolen property but when we are talking about Citizens engaged on illegal activities which Undocumented Immigrants are put the blame on; They are remained quiet. I never said I supported breaking the law, but I feel for those who have to risk their lives, their families, their Country, and leave loved ones behind to come to America for a better life deserves an opportunitty specially those are not engaged in criminal activities.

Once a government is committed to the principle of silencing the voice of opposition, it has only one way to go, and that is down the path of increasingly repressive measures, until it becomes a source of terror to all its citizens and non Citizens to creates a country where everyone lives in fear. And I refuse to fall for false reassurances and the tempting comforts of ignorance, and I want to contribute my voice in outrage, when others are forced into silence, To speak the truth as I find it in favor of Justice for all.

This is a case of $48 million were stolen from the District of Columbia Office of Tax and Revenue.

U.S. District Judge Alexander Williams, Jr. sentenced Richard Walters, age 49, of Bowie, Maryland, today to 51 months in prison followed by three years of supervised release for receipt of stolen property and conspiracy to commit money laundering in connection with a property tax refund scheme in which over $48 million were stolen from the District of Columbia Office of Tax and Revenue, announced United States Attorney for the District of Maryland Rod J. Rosenstein and U.S. Attorney for the District of Columbia Jeffrey A. Taylor. Judge Williams also ordered that Richard Walters forfeit $4,900,199 and, in order to satisfy such money judgment, to forfeit a home in the Virgin Islands, two homes in Bowie, Maryland, a 2005 Bentley, four other vehicles, jewelry and monies held in several bank accounts.

U.S. Attorney Rod J. Rosenstein stated, “Richard Walters and Harriette Walters deposited fifteen District of Columbia government checks totaling almost $5 million into a bank account in the name of his plumbing business over a period of six years. We will seek the forfeiture of all criminal proceeds and property purchased with stolen money because victims deserve restitution and criminals must not be permitted to profit from their crimes.”

According to the plea agreement, Richard Walters is the brother of Harriette Walters, a former manager within the District of Columbia Office of Tax and Revenue. Richard Walters owned and operated a plumbing business called “Helmet’s Plumbing.” From March 2001 to May 2007, Richard Walters, and on occasion, Harriette Walters with Richard’s knowledge, deposited 15 District of Columbia government checks totaling $4,900,199 into a bank account Richard Walters maintained for his plumbing business. Richard Walters knew that the checks had been obtained by fraud as part of a scheme to embezzle funds from the District of Columbia government. The individual checks ranged in amounts from approximately $95,148 to $541,100.

On many occasions, Harriette directed Richard to take the checks to a bank and have Walter Jones, a bank manager, deposit them into the Helmet account. In addition, on several occasions, Richard Walters deposited a fraudulent District of Columbia government check and immediately thereafter directed Walter Jones to prepare cashier’s checks to recipients of Richard’s choosing.

From July 2001 to November 2007, Richard and Harriette Walters distributed funds from the Helmet account, including at least: 46 transactions directing $1,059,307.50 to accounts controlled by Richard Walters; 14 transactions directing $225,266.87 towards projects for a home that Richard Walters was building in the U.S. Virgin Islands; 11 transactions directing $461,000 to Harriette Walters; $47,149 to the Washington Wizards to purchase season tickets; $40,000 to Neiman Marcus; and $18,100 to Saks Fifth Avenue for purchases. Richard Walters also purchased a 2005 Bentley automobile with proceeds of the fraud.

Harriette M. Walters, age 52, of Washington, D.C., pleaded guilty in the U.S. District Court for the District of Columbia on September 16, 2008 and faces a maximum sentence of 20 years in prison for wire fraud and money laundering conspiracy; 10 years for District of Columbia tax evasion; five years for federal tax evasion; and an order to pay restitution in the amount of $48,115,419.09. U.S. District Judge for the District of Columbia Emmet G. Sullivan has scheduled sentencing for Harriette Walters on March 25, 2009 at 11:00 a.m. Alethia O. Grooms, age 52, of Clinton, Maryland and Samuel Earl Pope, age 61, of Washington, D.C. also pleaded guilty to their participation in the scheme, and are scheduled to be sentenced on February 24 and 26, 2009, respectively.

Patricia A. Steven, age 73, of Harwood, Maryland; Robert Steven, age 55, of Edgewater, Maryland; Connie Alexander, age 52, of Bowie, Maryland; Richard Walters, age 49, of Bowie, Maryland; Walter Jones, age 33, of Essex, Maryland; Marilyn Yoon, age 40, of Derwood, Maryland; and Ricardo R. Walters, age 33, of Ft. Washington, Maryland, have pleaded guilty in U.S. District Court for the District of Maryland to their participation in the scheme. Patricia Steven, Robert Steven, Richard Walters and Alexander each face a maximum sentence of 10 years in prison for receipt of stolen property and 20 years in prison for conspiracy to commit money laundering at their sentencing scheduled by U.S. District Judge for the District of Maryland Alexander Williams, Jr. on December 8 at 10:00 a.m., December 8 at 1:15 p..m., November 4, 2008, and February 12, 2009, respectively. Walter Jones faces a maximum sentence of 20 years in prison and a fine of $500,000 or twice the value of the transactions involved, whichever is greater, for conspiracy to commit money laundering at his sentencing on a date which is not yet scheduled. Marilyn Yoon faces a maximum sentence of 10 years in prison and a $250,000 fine for possession of property obtained by fraud at her sentencing on
December 4, 2008.

United States Attorneys Rod J. Rosenstein and Jeffrey A. Taylor thanked the Federal Bureau of Investigation; the Internal Revenue Service - Criminal Investigation; the Inspector General’s Office for the District of Columbia; the District of Columbia Office of Tax and Revenue, Criminal Investigation Division; the Treasury Inspector General for Tax Administration; and the District of Columbia Office of the Chief Financial Officer, Office of Integrity and Oversight for their investigative work. Mr. Rosenstein commended Assistant United States Attorneys Jonathan Su and Deborah Johnston from the District of Maryland and Assistant United States Attorneys Timothy Lynch and David Johnson from the District of Columbia, who are prosecuting the case.

Undocumented Immigrants evading taxes?

A North Dartmouth woman was sentenced today in federal court after being convicted on charges of paying out more than $40 million in cash wages through their temporary employment agency in order to evade millions of dollars in tax payments and workers compensation insurance premiums.

United States Attorney Michael J. Sullivan; Tyrone G. Barney, Special Agent in Charge of the U.S. Internal Revenue Service, Criminal Investigation - Boston Field Office; Warren T. Bamford, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Office; and Anthony DiPaolo, Chief of Investigations for the Insurance Fraud Bureau of Massachusetts, announced that AIMEE KING MCELROYof North Dartmouth, Massachusetts, was sentenced to 78 months imprisonment, to be followed by 3 years of supervised release. In addition, KING MCELROY was ordered to pay $9,103,335 million dollars in restitution.

In February 2008, KING MCELROY and her husband, DANIEL W. MCELROY, were convicted, following a 2 ½ week jury trial, of conspiring to defraud the IRS and their workers compensation insurers, three counts of mail fraud, and fourteen counts of procuring false payroll tax returns. DANIEL W. MCELROY was previously sentenced to 108 months imprisonment, to be followed by 3 years supervised release and the same restitution.

It was revealed at trial that from the early-1990's to June 2001, the MCELROYS operated a temporary employment agency, which was based in Taunton and later in Easton, Massachusetts, that did business under the names the Dan Agency, the Daily Agency, Daily A. King Labor, Inc., Pro Temp. Company, PTC and Precission (sic) Temp. Corp. To avoid paying employment taxes, such as Social Security and Medicare, and to fraudulently reduce the businesses’ insurance premiums for workers compensation insurance, the defendants arranged to pay a large share of the businesses’ payroll in cash. In excess of $43 million in unreported cash was paid out to employees as a result of the scheme. This represents the largest under-the-table payroll scheme ever prosecuted in Massachusetts. The hidden payroll resulted in a loss of approximately $10 million to the IRS and approximately $7 million to workers compensation insurance companies.

The agencies provided hundreds of laborers to factories and food processing business throughout Eastern Massachusetts, especially in fish processing plants on the New Bedford waterfront, where roughly a third of their employees worked. Like every other employer, the defendants were required to pay payroll (or FICA) taxes on their payroll, and to obtain workers compensation insurance. The amounts a business pays in payroll taxes and workers compensation insurance premiums are based largely on the size of its payroll.

The defendants were subject to a court order issued by The Honorable Rya Zobel in 1994 that forbade them and their agency from paying cash to their employees. The judgment was a result of a civil action brought by the United States Department of Labor. Judge Zobel’s Order prompted the defendants to take additional measures to conceal their payroll. Most of all, they established a straw corporation called ProTemp Co. through which they funneled most of their cash payroll. Later, they opened another straw corporation called Precission (sic) Temp, Co. for the same purpose.

Although nominally separate, Daily A. King, ProTemp and Precission Temp were run as a single business. To disguise their ownership and control of the ProTemp and Precission Temp, the defendants installed two of their employees, Dich Trieu and Xieu Van Son, as the nominal presidents of the two companies. The defendants also veiled their control of the two companies by directing their in-house accountant, Charles Wallace, to file false tax returns in the names of the three businesses that omitted the company’s cash payroll. To mislead their insurance auditors, Wallace, at the defendant’s direction, fabricated payroll records that reflected a smaller payroll than even that reported in the false tax returns filed.

KING MCELROY was ordered to self-report to the Bureau of Prisons on December 2, 2008.

U.S. Congress reports a high incidence of Tax Evasion by?

Be my guest. I know extremists, Nativists, and Minuteman Members will still blamed Undocumented Immigrants but they are wrong.!!!!!!!! They should blame they own ignorance.

The tax dodging is a global phenomenon. It is not unique to Bangladesh only. Tax dodgers everywhere have transactions with on-shore banking. Billions of dollars are being stashed in banks outside one's own country.

A recent study in the US revealed that American and foreign companies do not pay taxes regularly. Two out of three companies in America did not pay any federal taxes from 1998 through 2005, Government Accountability Office (GAO), the investigative arm of the US Congress in a report said.

The report confirmed a lurking fear that the companies have not been scrupulous in paying federal taxes. The Congressional report did not identify the companies those who have been dodging taxes. The study covered 1.3 million companies of all sizes with a collective sale of $2.5 trillion. The foreign companies are included in the list. Those companies defaulted in larger number.

The tax evaders have used one loophole in the law. The companies are abusing tax laws by shifting income earned in higher-tax jurisdiction to overseas subsidiaries in low-tax jurisdiction. Senator Carl Levin of the Democratic party said, 'this report makes it clear that too many corporations are using tax trickery to send their profits overseas and avoid paying their fair share in the United States', the New York Times reported .

The government agencies do not have the exact data about how much money is being sent abroad to duck tax payment. The report said the larger corporations are more regular in paying taxes than the smaller ones.

Corporations with $250 million in assets and an annual turn over of $50 million are designated as the large corporations. One in four large corporations did not pay taxes regularly.

Corporations are levied to pay 36 per cent of their profits. They together owed the federal government $875 billion in tax payment. The corporations are allowed deduction because of write-offs, operating losses and tax credits. So they pay far less than what is projected. The largest corporations represent only one per cent of the total number of corporations but own more than 90 per cent of all corporations assets, an analyst said.

The Congressional study revealed that seven in ten foreign companies doing business in the US paid no taxes from 1998 through 2000 compared to six in ten American corporations

Tax Evasion. Undocumented Immigrants Undermine trust not paying taxes? A Myth or a Lie?

below is an interesting video on the current problems our country is facing with tax evasion. According to the video, the government loses about $100 billion in revenue from tax evasion, which makes up a huge part of the tax gap. Just for comparisons sake, $100 billion is more than what the federal government spends on education and training, triple what they spend on the environment and natural resources, and nearly five times what they spend on temporary assistance for families in need. Thanks to the American News Project.
Ignorance and the Intolerance against the Unknownn remains the powerful weapons against our Society.

When we are talking about Tax evasion, Identity Theft. What comes to your mind?

Undocumented Immigrants right!!!!! Sorry to disappointed you. You are Wrong. Ignorance remains the powerful weapons against our Society. Would his punishment fit his crime? His sentence 5 months in prison and 3 years in supervised release. When Undocumented Immigrants has been more than 6 months in Jail, torn apart from their families, and ending up most of the cases in deportation just for searching a better life.

Robert M. MacLafferty, age 46, of Portland, Tennessee was sentenced January 29th to serve 5 months in prison, followed by 3 years of supervised release. His sentence also included the requirement to pay restitution to the IRS of $37 plus thousand.

According to the US Attorney’s news release:

MacLafferty pled guilty on October 12, 2007, to five counts of income tax evasion. During his plea hearing, MacLafferty admitted that he earned income which required him to file federal income tax returns for years 1996 through 2003, however, he failed to file such a return in each of those years. MacLafferty also admitted that he had adjusted gross income totaling $227,993 from 2000 to 2003. During this period of time, MacLafferty provided false documents to his employer claiming he was not a citizen of the United States and therefore not liable to pay federal income taxes. MacLafferty also admitted that after the Internal Revenue Service filed a federal tax lien against his residence in Sumner County, he quit claimed his interest in this property and another property to his wife.

Undocumented Immigrants Do not paid taxes. A Myth or a lie?



politicians claim the government could be losing as much as $100 billion a year through U.S. Citizens using off-shore tax havens.

Undocumented Workers do no paid taxes.!!!!!! That Sounds familiar to you. A myth or a lie?
Tax evasion is in progress BUT not from Undocumented workers from Citizens!!!!!!.




A U.S. Citizen preventing the IRS from assessing and attempting to collect more than $34 million of unpaid payroll tax liabilities from Trebert, Ewing and May, and creating the appearance that these sham staffing/payroll entities employed more than 4500 nursing facility employees, when they did not. Where Nativists, Minuteman groups, Lou Dobbs, Tommy Tancredo stand on this issue? Hypocrisy is not a Family Value?


FORMER NURSING HOME EXECUTIVE SENTENCED TO 10 YEARS IN FEDERAL PRISON AND ORDERED TO PAY $11 MILLION RESTITUTION

Tarrant County Resident Convicted of Various Offenses Related to Operation of Nursing Homes


FORT WORTH, Texas — Stephen Michael Ewing, 60, of Bedford, Texas, who was convicted of various offenses related to his operation of nursing homes in Texas and elsewhere, was sentenced today by U.S. District Judge Terry R. Means to 120 months in prison, announced U.S. Attorney Richard B. Roper of the Northern District of Texas. In addition, Judge Means ordered that Ewing pay approximately $11 million in restitution. Ewing was ordered to surrender to the Bureau of Prisons on August 25, 2008.

A jury convicted Stephen Michael Ewing in March on one count of conspiracy, seven counts of tax evasion, five counts of mail fraud, seven counts of making false statements to government agencies and seven counts of making false statements regarding health care.

From August 1999 to mid-May 2004, Ewing, along with co-defendants, Gary Trebert and Larry May, conspired together, and with others, to defraud the U.S. by impeding, impairing, obstructing, and defeating the lawful government functions of the Internal Revenue Service (IRS) in the ascertainment, computation, assessment, and collection of the revenue, that is, nursing facility employees’ withheld income taxes, social security taxes and Medicare taxes, and the Department of Health and Human Services (HHS) in the administration of the Social Security Act and the Medicare and Medicaid programs.

Gary Trebert, 51, of Frisco, Texas, a licensed attorney, pled guilty in February 2008 to conspiracy to defraud the government by obstructing and impeding lawful government functions of the IRS and HHS and tax evasion and aiding and abetting. Trebert admitted that in April 2004, he attempted to evade and defeat the assessment and payment of more than $4,113,000 in withholding taxes taken out of employees’ pay at 42 nursing homes he and his coconspirators controlled. While Trebert faces a maximum statutory sentence of 10 years in prison, the government, as part of its his plea agreement, will make a non-binding recommendation that the Court sentence Trebert to an eight-year prison sentence. Trebert also may be ordered to pay restitution which will be based on all his criminal conduct relating to the offenses charged in the indictment, including, but not limited to, unpaid taxes and unlawfully obtained healthcare payments. He is scheduled to be sentenced on August 11, 2008.

Co-defendant Larry Gordon May, 49, of Hurst, Texas, pled guilty to his role in the conspiracy in October 2007. He was sentenced in April to 48 months in prison and is currently serving that sentence.

Ewing and his coconspirators, using the names of sham corporate entities, obtained control of 70 licensed nursing facilities with thousands of patient beds and thousands of employees. In order to acquire control of these facilities, Trebert, Ewing and May used false statements and false and fraudulent documents, including Applications for Nursing Facility License and Medicaid Contracts, Medicare Federal Provider Enrollment applications, ownership documents, IRS Employer Identification Number applications, Health Insurance Benefit Agreements, and Electronic Fund Transfer forms. Their falsifications included falsely identifying relatives as owners, operators, and managers of the nursing homes on the applications; failing to disclose staffing/payroll companies on nursing home applications; failing to disclose Ewing and May as the true owner/operators of nursing homes; and forging names of individuals on filed documents to divert responsibility away from the three defendants. They used the false statements and documents to hide from HHS, state licensing and Medicaid agencies, and the IRS, the true control and management of the nursing facilities, their responsibility for more than $200 million in money derived from the nursing homes, and their responsibility for the nursing facilities’ residents.

Both Trebert and May testified against Ewing at trial. Trebert testified that he and Ewing repeatedly discussed the creation and the overseas payroll companies to interfere with IRS efforts to collect the payroll taxes. Trebert also testified that Ewing once boasted about having previously operated nursing homes without having to pay the payroll taxes. Larry May testified that Trebert and Ewing made him president of the company, even though he told them he was not qualified.

May further testified that, during some of the periods covered by the Indictment, he was making $10,000 to $25,000 per month for doing little more than signing documents, including tax returns, and taking tax returns to England to mail back to the IRS in the U.S. More than 150 sham staffing/payroll entities, many with foreign business addresses at drop boxes in England and Austria, were created to file Form 941 employer withholding tax returns with the IRS, preventing the IRS from assessing and attempting to collect more than $34 million of unpaid payroll tax liabilities from Trebert, Ewing and May, and creating the appearance that these sham staffing/payroll entities employed more than 4500 nursing facility employees, when they did not.

The defendants diverted to themselves and their personal activities substantial sums of money derived from their nursing home operations and from the non-payment of employees’ withheld payroll taxes. At trial, the government presented evidence that, during the period covered by the Indictment, Ewing spent more than $2.5 million in money derived from the nursing home operations on his personal expenses. The total expenditures included more than $200,000 at department stores such as Saks Fifth Avenue, and more than $250,000 on automobiles

Undocumented Immigrants do no paid taxes. Sounds familiar to you. You can't cut the meat with two nails;it's like one more nail in the coffin. Hypocrisy is not a family value.



Tax avoidance is the legal utilization of the tax regime to one's own advantage, in order to reduce the amount of tax that is payable by means that are within the law. By contrast tax evasion is the general term for efforts to not pay taxes.
In the United States "tax evasion" is evading the assessment or payment of a tax that is already legally owed at the time of the criminal conduct.
So if the Anti Immigrant Group Alipacus.net sole ownership by William Gheen didn't paid taxes as Damn Mexicans exposed here then who's the ilegal criminal? Can we bring some justice? Can we enforce the rule of Law?

US senators have demanded a crackdown on offshore tax havens after a US congressional probe found tax evasion could be costing the US $100 billion a year.

On Friday, senators questioned the managing director of Westfield Group, an Australian firm, about its involvement with the LGT bank of Lichtenstein.

The Senate Permanent Sub-Committee on Investigations is looking at LGT Bank - and also the Swiss bank UBS - as part of a larger inquiry into wealthy US citizens who avoid taxes by hiding assets in Switzerland and Liechtenstein.

But Peter Lowy, the managing director of Westfield Group, cited his constitutional right to not give self-incriminating testimony when called to answer questions.

'Hurting Americans'

The committee also said during the past week's hearings that UBS bank has roughly 19,000 Swiss accounts for US clients hiding $18bn in assets from the Inland Revenue Service (IRS)

Al Jazeera's Rob Reynolds says the two banks are being investigated for allegedly peddling sophisticated tax-evasion strategies to super-rich Americans, using their countries' banking security laws as a shield.

"The actions of a few to scam their way out of tax obligations hurt all Americans," Norm Coleman, a Minnesota Republican, said on Friday.

"A privileged few believe they are entitled to shirk their obligations and heap their tax liability on the sagging shoulders of other Americans to make up for what they evade."

The hearings on Friday came a day after the US Government Accountability Office said a building on the British Carribbean territory the Cayman Islands was being used by 18,000 companies, of which five per cent are US-owned and another 40 per cent to 50 per cent have a US billing address or other connection.

'Whistle-blower'

Politicians accuse Lowy and his father, Frank Lowy, of hiding $68m in a foundation formed by LGT bank.

The scandal emerged when Heinrich Kieber, a former LGT computer technician, revealed hundreds of names and account details to tax authorities.

He is now wanted for arrest by the European state of Liechtenstein.

Jack Blum, a lawyer for Kieber, told Al Jazeera that the system of tax evasion operates on a global scale.

"It is the tip of an iceberg because what we are only talking about are US persons, one bank, in Switzerland. We are not talking about the worldwide scope of it," he said.

"The worldwide issue is this - there has been a wealth transfer from a bottom chunk of the world population to the top one half of one tenth of one per cent. And they have escaped all kinds of scrutiny."

US tax authorities have since served legal papers on UBS, and in June a UBS executive pleaded guilty in a US court to tax fraud.

And at a hearing last week, an official from UBS AG testified that the bank would overhaul its offshore private banking business and co-operate with summons by the IRS to provide names of US clients with undeclared accounts.

Undocumented Workers do no paid taxes.!!!!!! That Sounds familiar to you.



LOS ANGELES MAN WHO MADE ‘DONATIONS’ TO JEWISH GROUP AND TOOK BOGUS TAX DEDUCTIONS AGREES TO PLEAD GUILTY.


A Los Angeles man who made “donations” to several charitable organizations associated with a New York-based orthodox Jewish group – “donations” that were largely refunded – has agreed to plead guilty to federal tax evasion charges.

In a plea agreement filed today in United States District Court in Los Angeles, Uri Mandelbaum, 70, of the Hancock Park district of Los Angeles, has agreed to plead guilty to two felony tax charges and to pay back taxes totaling more than $1.5 million.

The plea agreement with Mandelbaum is the first one involving a “donor” to charitable organizations associated with Spinka, which is at the center of a scheme alleged in a related criminal case. Spinka is a religious group within Orthodox Judaism based in Brooklyn, New York. The Grand Rabbi of Spinka, his assistant, several other defendants and five Spinka charities were indicted last year on a host of federal charges related to a wide-ranging conspiracy to defraud U.S. government agencies, to operate an underground money transfer system and to launder money through an Israeli bank (see: http://www.usdoj.gov/usao/cac/pressroom/pr2007/164.html). According to statements made during court during proceedings in that case, prosecutors have expanded their investigation, which now targets more than 100 individuals who were contributors to Spinka organizations.

In the plea agreement filed today, Mandelbaum admits that he evaded the payment of $296,731 in federal income taxes for the years 2005 and 2006, the two years that are the subject of the criminal charges. During 2005 and 2006, Mandelbaum made $892,483 in contributions to Spinka organizations, and then 95 percent of the contributions were returned to Mandelbaum. However, Mandelbaum admits that he claimed the entire $892,483 as charitable contributions on his federal income tax returns for the two years.

In the plea agreement, Mandelbaum also admits that he made contributions to Spinka-related entities from 2001 through 2004 that were reimbursed at a 95 percent rate. During those four years, Mandelbaum admits that hundreds of thousands of dollars went through the Spinka organizations, resulting in tax losses of $1,285,591.

Mandelbaum additionally admits that he received cash from Spinka organizations in order to give kickbacks to other contributors. During 2005 and 2006, Mandelbaum received $662,068 in cash that he relayed to others, according to his plea agreement.

Mandelbaum has agreed to appear in federal court in Los Angeles for an arraignment on July 28.

The statutory maximum penalty for the two counts of tax evasion is 10 years in federal prison and a $500,000 fine.

Two of the defendants charged in the main Spinka indictment have pleaded guilty (see: http://www.usdoj.gov/usao/cac/pressroom/pr2008/091.html). The other defendants are scheduled to go on trial before United States District Judge George P. Schiavelli on November 12.

Undocumented Workers do no paid taxes.!!!!!! That Sounds familiar to you.






Tax evasion is in progress BUT not from Undocumented workers. Citizen evaded the payment of more than $3 million in taxes and defrauded more than ten lenders, including several federally insured financial institutions and Stewart Title, of more than $6.6 million. The Punishment fit his crime.!!!!!!!!!!!!!!

FORMER WORCESTER ATTORNEY SENTENCED ON FRAUD, TAX VIOLATIONS CHARGES.

BOSTON, MA - A Worcester man was sentenced today in U.S. District Court on wire fraud and evasion of payment of taxes charges.

United States Attorney Michael J. Sullivan, Warren T. Bamford, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Division and Tyrone G. Barney, Special Agent in Charge of the U.S. Internal Revenue Service, Criminal Investigation - Boston Field Office, announced today that ALAN MASON, age 61, of 26 Pine Hill Road, Princeton, MA, was sentenced by U.S. District Court Judge Dennis Saylor IV, to 9 years of imprisonment, to be followed by 3 years of supervised release. He was also ordered to pay $6,628,119 in restitution. MASON was immediately remanded into custody.

MASON was an attorney whose law practice was centered on providing legal services in connection with real estate closings, and who conducted business in Worcester under the name Alan Mason Legal Services, Inc. MASON was also involved in the purchase and sale of real estate. From at least June 2001 through June 2006, MASON engaged in a fraudulent scheme in which he took funds he received from banks for the purpose of paying off prior liens on properties for closings he was handling, and converted those funds for his own personal and business purposes.

In furtherance of that fraudulent scheme, MASON prepared documents, including checks and HUD-1 forms, which made it appear that he had in fact paid off the prior liens. Instead, MASON made monthly mortgage payments to the prior lienholders in order to prevent the loans from going into default and thus alerting the buyers, sellers and new lenders that the prior lien had not been paid off. As an agent of the title insurance company Stewart Title, MASON issued title insurance policies to real estate buyers and lenders which indemnified them against title defects, even though he knew that the titles were defective because he had not paid off prior lienholders and had not obtained discharges of those liens. MASON’S scheme defrauded more than ten lenders, including several federally insured financial institutions and Stewart Title, of more than $6.6 million.

MASON also evaded the payment of more than $3 million in taxes by, among other things, setting up and controlling multiple real estate trusts and bank accounts using the names of employees and relatives but which did not identify MASON’S interest in writing to prevent the tax authorities from attaching those assets. MASON bought and sold real estate through those trusts and used the substantial profits for personal expenses such as home improvements, an antique clock collection, mortgage payments and investments in new properties.

The case was investigated by the Federal Bureau of Investigation Boston Field Division and the Internal Revenue Service, Criminal Investigation - Boston Field Office. It was prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Sullivan’s Economic Crimes Unit.

Undocumented Workers do no paid taxes.!!!!!! That Sounds familiar to you.
Tax evasion is in progress BUT not from Undocumented workers.



MAN CONVICTED FOR FAILING TO REPORT TO THE IRS OVER $5 MILLION IN INCOME FROM THE SALE OF COMPUTER PARTS AND SOFTWARE


SAN FRANCISCO—United States Attorney Joseph P. Russoniello and Special Agent in Charge, IRS Criminal Investigation, Scott O’Briant announced that Mohammad Yousuf Chaudhry was convicted by a federal jury on Friday of filing false tax returns, conspiracy, and structuring currency transactions to evade a reporting requirement. The jury, after deliberating over two days, found Mr. Chaudhry guilty of all 16 charges against him. The guilty verdict followed a one-week trial before U.S. District Court Judge Charles R. Breyer.

Evidence at trial showed that Mr. Chaudhry, of Los Altos, California, was involved in a conspiracy to structure transactions to avoid financial reporting requirements. Specifically, Mr. Chaudhry conspired with others to cash checks from his computer software customers in such a way that the $10,000 threshold that triggers the filing of a Currency Transaction Report or CTR was not triggered. He did not report the checks he had converted into cash as income for his two businesses – RT Computers (RT) and Alternative Energy Systems (AES) -- on the federal corporate income tax returns. In total, Mr. Chaudhry failed to report over $5 million in income on his corporate tax returns. One of his employees, Ali Khan of San Jose, California assisted Mr. Chaudhry with structuring transactions by cashing multiple checks in amounts less than $10,000 at local check cashers, instead of depositing those checks into business bank accounts. Some of those check cashers agreed they would not file Currency Transaction Reports (CTRs) with the IRS. Mr. Khan further helped to cover up Mr. Chaudhry’s scheme by filing false CTRs on behalf of RT and AES and by using a false signature when endorsing checks. Mr. Khan participated in cashing over 150 checks, and Mr. Chaudhry personally cashed many more. Mr. Khan pleaded guilty on May 27, 2008 to 26 USC § 7207 (filing false documents with the Internal Revenue Service).

Mr. Chaudhry was indicted by a federal grand jury on October 23, 2003. He was charged with five counts of subscribing to a false corporate income tax return filed with the Internal Revenue Service, in violation of Title 26, United States Code, Section 7206(1); one count of conspiring to structure transactions to evade reporting requirements in violation of Title 18, United States Code, Section 371; and 11 counts of structuring transactions for the purpose of evading a reporting requirement, in violation of Title 31, United States Code, Section 5324(a)(3). One count of filing a false corporate return was dismissed at the close of the government’s case.

The sentencing of Mr. Chaudhry is scheduled for September 17, 2008, before Judge Charles Breyer in San Francisco. The maximum statutory penalty for the conspiracy charge is five years in prison and a fine of $250,000. The maximum statutory penalty for each count in violation of Title 26 Section 7206(1) is up to three years in prison and a fine of $100,000, plus restitution. The maximum statutory penalty for each count of structuring is five years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

AUSAs Kirstin Ault and Thomas Moore are the Assistant U.S. Attorneys who are prosecuting the case, with the assistance of paralegals Lou Statti and Kathy Tat. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation

WOMAN ARRESTED ON FEDERAL FRAUD CHARGES FOR DEFRAUDING MEDICARE OUT OF $12 MILLION




This morning, special agents with the FBI and IRS-Criminal Investigation arrested the operator of Wescove Home Health Services at her home in Covina on health care fraud and money laundering charges stemming from her participation in a scheme that defrauded Medicare out of more than $12 million.
Felcoranenda “Nenda” Estudillo, 50, a registered nurse, ran Wescove, which was based in the city of West Covina. Estudillo was Wescove’s administrator, responsible for the home health agency’s day-to-day operations and Medicare billing activity. In a 36-count indictment returned earlier this week and unsealed today, Estudillo is charged with conspiracy, health care fraud, money laundering, the structuring of cash transactions and falsifying records to maintain Wescove’s participation in the Medicare program.
According to the indictment, Estudillo paid marketers to recruit Medicare beneficiaries to receive benefits they were not eligible to receive. The marketers recruited and referred Medicare patients to Wescove, even though the beneficiaries were not confined to the home and did not need skilled nursing or therapy services. According to the indictment, Wescove billed Medicare for home health services provided to beneficiaries who were not confined to their homes, did not qualify for or need those types of services, or never received any services.
Estudillo allegedly paid marketers fees ranging from $300 to $4,800, based upon the amount that Wescove was able to fraudulently bill to Medicare. Estudillo would pay marketers higher fees for patient referrals that resulted in increased Medicare billings. She also allegedly paid referral fees that she booked as “skilled nursing” payments to conceal the payment of kickbacks.
According to the indictment, some Medicare beneficiaries were paid cash to sign up for home health services after being recruited by the marketers to receive services they did not need or did not receive. Estudillo allegedly paid more than $3.1 million to at least six marketers for the referral of Medicare beneficiaries.
The indictment charges Estudillo with 11 money laundering counts and 12 cash-structuring violations. These result from allegations that Estudillo laundered the proceeds of her Medicare billing scheme to promote the scheme, conceal the source of payments made to marketers and to herself, and avoid the payment of taxes . According to the indictment, Estudillo paid cash to some of the marketers who referred patients. To facilitate this, Estudillo devised a check-cashing scheme involving the marketers and Wescover employees in which they negotiated Wescove checks, obtained cash, and Estudillo used some of the cash to pay the marketers and patients. Estudillo allegedly wrote checks to marketers and employees in amounts less than $10,000 in an effort to avoid the currency transaction reporting requirements that banks are required to follow.
Estudillo is expected to make her initial court appearance this afternoon in United States District Court in Los Angeles.
If convicted of all counts in the indictment, Estudillo faces a statutory maximum penalty of 430 years in federal prison.
The investigation of Estudillo was conducted by IRS-Criminal Investigation and the Federal Bureau of Investigation

Money laundering is tax evasion in progress BUT not from Undocumented workers.

FIFTH DEFENDANT IN D.C. PROPERTY TAX REFUND FRAUD SCHEME PLEADS GUILTY
Connie Alexander Received at Least $3,185,370 in Cash and
Deposited at Least $1,588,246 in Fraudulent District of Columbia Checks


Greenbelt, Maryland - Connie Alexander, age 52, of Bowie, Maryland, pleaded guilty today to receipt of stolen property and conspiracy to commit money laundering in connection with a property tax refund scheme in which millions of dollars were stolen from the District of Columbia Office of Tax and Revenue, announced United States Attorney for the District of Maryland Rod J. Rosenstein and U.S. Attorney for the District of Columbia Jeffrey A. Taylor. As part of her plea agreement, Connie Alexander agreed to forfeit $3,185,370 and, in order to satisfy such money judgment, to forfeit a Mercedes-Benz car, a Harley Davidson motorcycle, a Cadillac Escalade SUV, designer handbags, 62 pieces of jewelry, fur coats and monies held in three bank accounts.

U.S. Attorney Rod J. Rosenstein stated, “We will seek the forfeiture of all criminal proceeds and property purchased with stolen money because victims deserve restitution and criminals must not be permitted to profit from their crimes. Connie Alexander’s conviction is an important step in our ongoing effort to see to it that justice is done. We will not relent in this investigation until every co-conspirator is held accountable.”

Special Agent in Charge C. Andre Martin, Internal Revenue Service - Criminal Investigation, stated, "Money laundering is tax evasion in progress. The IRS - Criminal Investigation Division with the law enforcement community are united in our resolve to financially disrupt criminal organizations that commit crimes against our society and economy."

According to the plea agreement, Alexander first met a co-conspirator (Conspirator) in 1992 when Alexander was working at a Maryland casino that the Conspirator frequented. They became friends, and the Conspirator often gave Alexander gifts of money averaging $5,000 per gift. The Conspirator also gave Alexander furs, and paid for much of Alexander’s 2006 wedding and reception at the Paris Hotel in Las Vegas, Nevada.

Sometime between 1998 and 2000, the Conspirator introduced Alexander to Walter Jones, whom the Conspirator described as her banker. Soon thereafter, the Conspirator provided Alexander with envelopes containing fraudulently obtained District of Columbia government checks to take to Jones at bank branches in the District of Columbia and Maryland, saying that Jones would know what to do with the envelopes. Sometimes Jones directed Alexander to endorse some of the District of Columbia government checks, even though Alexander did not have an account at the bank and Alexander was not entitled to the proceeds of the checks. Other times, Jones directed Alexander to endorse the District of Columbia government checks by signing “Connie Alexander, Esquire” or to endorse the checks in the name of a law firm, even though Alexander was not an attorney and had no affiliation with the law firm. Each time, Jones completed the transaction and gave Alexander an envelope to take back to the Conspirator. The Conspirator sometimes gave Alexander cash gifts after completing a transaction. From December 1998 to November 2007, Alexander deposited on behalf of the Conspirator at least eight District of Columbia checks totaling $1,558,246.83. The individual checks ranged in amounts from $51,510 to $459,990. At the Conspirator’s direction, Alexander deposited two of these checks in the amounts of $459,990 and $345,500 in a bank account Alexander opened for her business called “Aurora R.E. Enterprises,” a name suggested by the Conspirator.

Between 2002 and 2007, Alexander received at least $3,185,370 in 92 cash payments from members of the conspiracy. Individual payments ranged in amounts of $1,000 to $150,000. Alexander used some of the money to obtain a 2000 Mercedes-Benz automobile, 2002 Harley Davidson motorcycle, 2003 Cadillac Escalade SUV, three projection televisions, designer handbags, 62 pieces of jewelry, eight fur coats and two other coats, all of which she has agreed to forfeit, in addition to proceeds from three bank accounts.

Alexander faces a maximum sentence of 10 years in prison for receipt of stolen property and 20 years in prison and a fine of $500,000 or twice the value of the transactions involved, whichever is greater, for conspiracy to commit money laundering. U.S. District Judge Alexander Williams, Jr. has scheduled her sentencing for September 25, 2008 at 9:30 a.m.

Richard Walters, age 49, of Bowie, Maryland, pleaded guilty on May 29, 2008 in connection with the property tax refund scheme. He faces a maximum sentence of 10 years in prison for receipt of stolen property and 20 years in prison for conspiracy to commit money laundering. Judge Williams scheduled his sentencing for September 8, 2008 at 9:30 a.m.

Walter Jones, age 33, of Essex, Maryland, pleaded guilty on May 21, 2008 and faces a maximum sentence of 20 years in prison and a fine of $500,000 or twice the value of the transactions involved, whichever is greater, for conspiracy to commit money laundering. Judge Williams scheduled his sentencing for September 11, 2008 at 9:30 a.m.

Marilyn Yoon, age 40, of Derwood, Maryland, also pleaded guilty on May 19, 2008 in connection with the property tax refund scheme. She faces a maximum sentence of 10 years in prison and a $250,000 fine for possession of property obtained by fraud. Judge Williams scheduled her sentencing for September 12, 2008 at 9:30 a.m.

Ricardo R. Walters, age 33, of Ft. Washington, Maryland, pleaded guilty on May 2, 2008 in connection with the property tax refund scheme and faces a maximum sentence of 10 years in prison for receipt of stolen property and 20 years in prison for conspiracy to commit money laundering. Judge Williams scheduled his sentencing for July 23, 2008 at 9:30 a.m.

United States Attorneys Rod J. Rosenstein and Jeffrey A. Taylor thanked the Federal Bureau of Investigation; the Internal Revenue Service - Criminal Investigation; the Inspector General’s Office for the District of Columbia; the District of Columbia Office of Tax and Revenue, Criminal Investigation Division; and the District of Columbia Office of the Chief Financial Officer, Office of Integrity and Oversight for their investigative work. Mr. Rosenstein commended Assistant United States Attorneys Jonathan Su and Deborah Johnston from the District of Maryland and Assistant United States Attorneys Timothy Lynch and David Johnson from the District of Columbia, who are prosecuting the case.

TAX EVADERS TAKE ME BACK TO HISTORY. DID YOU KNOW ADOLF HITLER WAS A TAX EVADER.



Adolf Hitler spent years dodging taxes, accumulating enormous debts as he led his Nazi party to power, a German tax expert has revealed. He owed the authorities 405,500 Reichsmarks ( about $ 8,000,000 usd in today's money) by 1934, when as German chancellor his debts were forgiven.

A retired Bavarian notary, Klaus-Dieter Dubon, found Hitler's tax secrets in papers from the Bavarian State Archive. "He was constantly challenging tax office rulings," Mr Dubon told Reuters.

The tax office inquired how Hitler had obtained funds to buy a luxury Mercedes car while he was in prison following his abortive 1923 coup attempt.....

Hitler replied that he had received a bank loan and the car "is for me just a means to an end".

After his release from jail, Hitler had declared his possessions simply as one desk and two bookshelves, the German newspaper Bild reported.

Mein Kampf earnings

Mr Dubon told Reuters that Hitler had earned 1.2m Reichsmarks in 1933 from sales of his book Mein Kampf - "a huge income, when you consider teachers then had annual salaries of 4,800 marks".

But he failed to pay tax on 600,000 Reichsmarks of that income, the researcher found.

By 1945 Hitler had made 7.6m Reichsmarks out of Mein Kampf, without paying any tax.

In his lengthy correspondence with tax inspectors, Hitler repeatedly asked to pay in instalments.

But once installed as chancellor in 1933, his tax troubles were over.

He was declared free of tax obligations in 1934 and the reward for the official who absolved him was a monthly tax-free income of 2,000 Reichsmarks.

"It's all so ridiculous," said Mr Dubon. "But in a dictatorship everything the dictator does is correct."

Learning illegal behavior from U.S. Citizens. A person indicted for tax evasion.





Former MED Employee Sentenced to Five Years

Memphis, TN - Cassandra J. Stanfield, a former employee at the Regional Medical Center Memphis, has been sentenced by U.S. District Judge Jon P. McCalla to serve 60 months in prison, followed by 6 years of supervised release announced David Kustoff, United States Attorney for the Western District of Tennessee. Stanfield was also ordered to pay restitution of $2.8 million.

Stanfield entered a guilty plea to embezzling monies from the medical center and income tax evasion on September 24, 2007. As part of her plea agreement Stanfield agreed to forfeit her interest in all property derived from her criminal conduct and to pay restitution to all identifiable victims who suffered losses as a result of her criminal conduct.

In pleading guilty to income tax evasion Stanfield acknowledged that for calendar year 2004 she did not file a tax return despite the fact that she received taxable income in the approximate amount of $968,523.20 on which she owed approximately $317,051.12 in taxes.

The indictment which was returned in December 2006 alleged that Stanfield embezzled funds while employed in the Med's Patient Financial Services Department as "lead cashier" during 2002 through 2005.

This case was investigated by the Federal Bureau of Investigation-Memphis Division, the Internal Revenue Service Criminal Investigation, and the Tennessee Bureau of Investigation. Assistant United States Attorney Carroll André represented the government

Another tax evasion fraud scheme. Charged with two counts of filing false tax returns.
Three Tax-Related Charges Added to Charges Arising From a $32 Million
Computer Equipment Leasing Scheme


Baltimore, Maryland - A federal grand jury indicted Alan B. Fabian, age 43, of Cockeysville, Maryland, today for two counts of filing false tax returns and one count of making false statements in connection with a tax return, announced United States Attorney for the District of Maryland Rod J. Rosenstein. Fabian previously had been indicted on federal charges for mail fraud, money laundering, bankruptcy fraud, perjury and obstruction of justice arising out of a scheme to defraud a computer equipment leasing company, financial institutions and a government consulting company of $32 million.

Today’s superseding indictment alleges that on April 15, 2003 Fabian, a certified public accountant, filed a false individual federal tax return for the tax year 2002 indicating that he and his spouse had total income of $475,827 when in fact, he knew that he had unreported additional income of at least $500,000 obtained from his participation in the equipment leasing scheme that is the subject of the pending indictment. He also allegedly indicated that $46,425 in federal taxes had been withheld on his behalf in 2002, when in fact he knew that only $14,654.68 in federal taxes had been withheld that year.

Similarly, the superseding indictment alleges that on October 15, 2004 Fabian filed a false individual federal tax return for the tax year 2003 indicating that he and his spouse had total income of $573,893 when in fact, he knew that he had unreported additional income of at least $1 million obtained from his participation in the fraudulent computer equipment leasing scheme. He also allegedly indicated that $46,000 in federal taxes had been withheld on his behalf in 2003, when in fact he knew that only $13,969.80 had been withheld that year.

Today’s indictment also alleges that on December 27, 2005 Fabian filed an individual federal tax return for the tax year 2004 which indicated that $504,000 in federal taxes had been withheld on his behalf in 2004, when in fact he knew that only $28,985 in federal taxes had been withheld that year.

Allegations included in the earlier indictment and repeated in the superseding indictment returned today charge that from March 2001 to July 2004, Fabian caused Strategic Partners International LLC and later, Strategic Partners International, Inc., companies that he formed (collectively, SPI), to enter into sale-leaseback transactions to purportedly purchase $32 million in computer hardware and software, when in fact SPI either never purchased such equipment or purchased substantially less expensive equipment. As a result of this scheme, the indictment alleges that Fabian caused his employer to make approximately $800,000 in rent payments to the leasing company and funding sources on purported leases entered into by SPI. Fabian is alleged to have diverted substantial amounts of cash provided to SPI by the leasing company for his personal benefit, including at least $500,000 to purchase real estate in North Carolina, $600,000 to pay for private jet travel and $3.9 million to form and operate the Centre for Management and Technology (CMAT), a not-for-profit entity located in Baltimore.

The indictment also repeats allegations that on August 31, 2004, two of the funding sources filed a petition forcing SPI, Inc. involuntarily into bankruptcy. From June 2004 to at least January 2007, Fabian engaged in a scheme to defraud the bankruptcy court and creditors of SPI in order to keep the proceeds of his mail fraud scheme out of reach of SPI’s creditors by creating false documents and giving false testimony. Fabian is alleged to have perjured himself in the course of two depositions in the SPI, Inc. bankruptcy case.

Finally, the indictment repeats charges that Fabian obstructed justice by: falsely testifying before the bankruptcy court in December, 2006 about transfers of funds he made from SPI to purchase real estate in North Carolina; filing false financial statements with the bankruptcy court on three occasions in 2004 and 2005; and influencing a business associate to provide false information to a forensic accountant retained by the bankruptcy trustee.

The indictment seeks forfeiture of $32 million in substitute assets, including eight properties in North Carolina and a property in Hunt Valley, Maryland; cash; a Silverton yacht; three vehicles; and Fabian’s interest in several companies.

Fabian faces a maximum sentence of three years on each of two counts of filing false tax returns and five years for making false statements. Fabian faces a maximum sentence of 20 years in prison for each of the nine counts of mail fraud; 10 years in prison for each of the nine counts of money laundering and one count of obstruction of justice; and five years in prison for each of the two counts of bankruptcy fraud and two counts of perjury.

An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.

United States Attorney Rod J. Rosenstein thanked the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation for their investigative work. Mr. Rosenstein commended Assistant United States Attorneys Tonya Kelly Kowitz and Jonathan Biran, who are prosecuting the case

For those who's blaming the undocumented Immigrants that they are not paying taxes and using social services ending in burning taxpayers pockets. You should be ashamed.
Corrupt government employees can cause tremendous harm when they abuse their authority and line their pockets with taxpayer dollars

FEDERAL AND LOCAL LAW ENFORCEMENT OFFICIALS ANNOUNCE ARRESTS AND RAIDS IN MULTIMILLION-DOLLAR D.C. PROPERTY TAX REFUND FRAUD SCHEME.

WASHINGTON - Beginning early today, approximately 100 federal and local law enforcement agents executed seven search warrants in the District of Columbia and Maryland and arrested five persons, including two District of Columbia employees, in connection with a massive property tax refund fraud scheme that was designed to steal tens of millions of dollars from the District of Columbia by approving and issuing fraudulent property tax refunds from the District of Columbia’s Office of Tax and Revenue (“OTR”), U.S. Attorney for the District of Columbia Jeffrey A. Taylor, U.S. Attorney for the District of Maryland Rod J. Rosenstein, Joseph Persichini, Jr., Assistant Director in Charge of the FBI’s Washington Field Office, Charles J. Willoughby, Inspector General for the District of Columbia, and District of Columbia Chief Financial Officer Natwar M. Gandhi jointly announced today.

Arrested this morning were 51-year-old Harriette Walters, Manager of the D.C. Real Property Tax Administration Adjustments Unit, of Washington, D.C., and 54-year-old Diane Gustus, a Real Property Program Specialist with OTR, of Clinton, MD, and three of their alleged co-conspirators, Jayrece E. Turnbull, 33, Richard J. Walters, 48, and Connie L. Alexander, 52, all of Bowie, Maryland, for their roles in a scheme to defraud the District of Columbia out of millions of dollars in real estate property tax refunds. The arrest warrants and felony complaints charge the participants in the scheme with several felony offenses, including mail fraud, bank fraud, money laundering, interstate transportation of stolen property, and conspiracy. If convicted of bank fraud alone, the defendants face a maximum sentence of 30 years in prison.

The District of Columbia tax code imposes property taxes on real estate in the District and provides a mechanism for property tax refunds when, for example, an individual or company overpays real estate taxes. According to the affidavits filed in support of the arrest and search warrants, from 2004 through the present,

Harriette Walters, Diane Gustus, and other D.C. government employees were involved in preparing or approving fraudulent property tax refund requests to generate over 40 separate fraudulent refund checks averaging over $388,000 each. Those fraudulent tax refund checks were deposited primarily into sham corporate accounts controlled by Harriette Walters’s relatives, including Turnbull’s “Chappa Home Services” and “Legna Home Services” accounts, and Richard Walters’s “Helmet Plumbing and Heating” account.

The fraudulently obtained funds then allegedly were distributed through cash, cashier’s checks, and wire transfers to the co-conspirators and family members, who used the funds to purchase homes, vehicles, jewelry, luxury clothing and houseware items, and other real and personal property, among other things. For example, it is alleged that between September 2000 and the present, Harriette Walters spent more than $1.4 million at Neiman Marcus. Additionally, the affidavits allege, some of the money stolen from the District of Columbia has been sent to a money exchange institution in the Dominican Republic that has no bank branches in the United States.

To date, approximately 42 fraudulent refund checks have been identified that resulted in a loss of over $16 million to the District.

“Public officials serve the public, and those who abuse the public’s trust by treating the District’s tax coffer as a private cash trough will be rooted out and held accountable for their actions,” stated U.S. Attorney Taylor. “Today we have taken a significant step toward eliminating this fraud and recovering funds looted from the District’s treasury.”

“Corrupt government employees can cause tremendous harm when they abuse their authority and line their pockets with taxpayer dollars. This expeditious, effective, and coordinated investigation demonstrates our commitment to ensure that any government employee who betrays the public trust and steals from the taxpayers is held accountable,” said U.S. Attorney Rosenstein.

“Today’s arrests and searches were a success due to a seamless joint investigation between the FBI’s Washington and Baltimore Field Offices and our federal and local law enforcement partners. Solid teamwork leads to solid, productive investigations,” stated FBI Assistant Director in Charge Persichini.

“This joint effort demonstrates how the federal and D.C. governments can work together for the benefit of the District and its residents,” stated D.C. Inspector General Willoughby.

“This behavior, on the part of those entrusted to safeguard the government’s resources, is reprehensible and will not be tolerated. Those involved will be identified and prosecuted to the fullest extent of the law. We will coordinate with the Office of the Inspector General, to conduct a comprehensive review of the Office of Tax and Revenue to immediately address deficiencies in management and internal controls. I want to emphasize that although any dollar lost to fraud is a dollar too much, this incident in no way compromises the financial stability and viability of the District,” said Chief Financial Officer Gandhi.

As a result of today’s search warrants and arrests, special agents from the Washington Field Office and Baltimore Field Office of the Federal Bureau of Investigation, in conjunction with agents from the Internal Revenue Service and District of Columbia Office of Inspector General, and criminal investigators from the District of Columbia Office of the Chief Financial Officer seized fur coats, jewelry, and designer bags worth thousands of dollars, bank accounts controlled by the conspirators, and several of their automobiles, including a 2005 Bentley.

Defendants Harriette Walters and Diane Gustus were charged in the U.S. District Court for the District of Columbia. Their three alleged co-conspirators were charged in the U.S. District Court for the District of Maryland. The defendants’ initial appearances in the respective courts began this afternoon.

This investigation is continuing. The extent of the scheme and magnitude of the fraud are still being assessed.

In announcing today’s arrests and seizures, U.S. Attorneys Taylor and Rosenstein, FBI Assistant Director in Charge Persichini, Inspector General Willoughby and Chief Financial Officer Gandhi commended the team of investigators and prosecutors from their respective offices.

The cases will be jointly prosecuted by the U.S. Attorneys’ Offices for the Districts of Columbia and Maryland.

A felony complaint is merely a formal charge that a defendant has committed a violation of criminal law. All defendants are presumed innocent until and unless proven guilty.