Month: August 2022

Source: United States Department of Justice Criminal Division

A Nevada restaurant owner pleaded guilty today to tax evasion.

According to court documents and statements made in court, Raul Gil, 63, owned and operated three Casa Don Juan restaurants in Las Vegas. From 2014 through 2018, Gil directed his bookkeeper to prepare false books and records for Gil’s restaurants that underreported cash sales at the restaurants by approximately $5.1 million. Gil then provided the false records to his tax return preparer, who annually prepared the Casa Don Juan corporate tax returns and Gil’s individual tax returns. As a result, the Casa Don Juan corporate tax returns were false for each of these years. Because the restaurant profits flowed through to Gil personally, his individual income tax returns for these years were false as well. Finally, because Gil directed the three restaurants to underreport their total sales, the Nevada sales tax returns for the restaurants also were false during these years.

In July 2018, the IRS initiated an audit of Gil. During the audit, Gil instructed his accountant to provide to the IRS false profit and loss statements that matched the figures reported on the tax returns. Gil also directed his bookkeeper to provide to the IRS false daily cash and sales reports purportedly printed from the restaurants’ point-of-sale systems. During interviews with the IRS, Gil falsely stated to the revenue agent conducting the audit, and later to IRS-Criminal Investigation special agents, that the falsified daily cash reports and point-of-sale records were accurate.

In total, Gil caused a tax loss to the IRS of approximately $1.6 million.

“Owners of restaurants that conduct a large number of cash transactions have to report all of their income, just like everyone else,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “We will investigate and prosecute those who shortchange their honest competitors and fellow citizens by willfully evading these laws.”

“In today’s challenging economic environment, it’s more important than ever that the American people feel confident that everyone is playing by the rules and paying the taxes they owe,” said IRS-Criminal Investigation Special Agent in Charge Albert Childress. “Those Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who don’t.”

Gil is scheduled to be sentenced on November 10 and faces a maximum sentence of five years in prison for tax evasion. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

IRS-Criminal Investigation is investigating the case.

Trial Attorneys Thomas Flynn and Jacob Green of the Tax Division and Assistant U.S. Attorney Eric Schmale of the U.S. Attorney’s Office for the District of Nevada are prosecuting the case. Former Trial Attorneys Michael Landman and Stephen Moulton of the Tax Division also provided valuable assistance.

Source: United States Department of Justice Criminal Division

Remarks as Delivered

Thank you, Attorney General Garland.

The complaint alleges that Idaho’s law is contrary to EMTALA because it presumptively criminalizes all abortions, making it a felony for doctors to provide emergency treatment required by federal law, even where a denial of care will likely result in the death of the pregnant patient. The Idaho law flatly prohibits abortion even where medically necessary to protect the health of the patient, such as where women are experiencing incomplete miscarriage or severe preeclampsia.

Specifically, Idaho’s law, which takes effect on August 25, places the burden on physicians to prove — at trial, following arrest and indictment — that they are not criminally liable. Physicians can only do so by proving that the abortion they performed was necessary for one of two reasons: to prevent the death of a pregnant woman, or in response to a case of rape or incest that was previously reported to the police or, in the case of a minor, to Child Protective Services. Physicians who do not meet this burden face two to five years’ imprisonment and revocation of their medical license. And the law provides no defense whatsoever for when the health of the pregnant patient is at issue.

Moreover, under the Idaho law, healthcare professionals such as nurses and lab techs face license suspension and, potentially, revocation for even assisting with abortions.

The law thus places medical professionals in an impossible situation: they must either withhold stabilizing treatment required by EMTALA or risk felony prosecution and license revocation. In so doing, the law will chill providers’ willingness to perform abortions in emergency situations and will hurt patients by blocking access to medically necessary healthcare.

The United States therefore seeks a declaratory judgment that Idaho’s law violates the Supremacy Clause of the United States Constitution and is preempted by federal law where it conflicts with EMTALA. The United States also seeks a declaratory judgment that Idaho may not punish medical providers based on their performing an abortion authorized by federal law. And we seek an injunction prohibiting Idaho’s enforcement of this law to the extent that it conflicts and prevents physicians from providing the emergency treatment that federal law requires.

In the wake of Dobbs, the Justice Department established the Reproductive Rights Task Force to formalize our ongoing work to protect reproductive freedom.

One critical focus of the Task Force has been assessing the fast-changing landscape of state laws and evaluating potential responses to infringements on federal protections. Today’s lawsuit against the State of Idaho for its near-absolute abortion ban is the first public example of this work in action.

The Task Force’s other work includes advising agencies on legal issues that have arisen post-Dobbs; coordinating technical assistance both to Congress and to States on Federal constitutional questions; and meeting with members of a broad array of stakeholder groups — including state Attorneys Generals’ offices, members of litigating, reproductive justice, and provider groups and members of the pro bono legal community on our collective efforts to protect reproductive care.

We know that these are frightening and uncertain times for pregnant women and their providers, and the Justice Department, through the work of its Task Force, is committed to doing everything we can to ensure continued lawful access to reproductive services.

And now I’d like to turn the podium back to the Attorney General, who will take some questions.

Source: United States Department of Justice News

Jackson, Miss. – A Meridian man pled guilty today to possession of an unregistered short-barreled shotgun, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.

According to court documents, Edward Tyrone Walker, 43, possessed a shotgun which had a barrel of less than 18 inches in length that was not registered to him in the National Firearms Registration and Transfer Record.  Officers of the Meridian Police Department were conducting an unrelated investigation at a convenience store and discovered evidence showing that Walker had possession of a short-barreled shotgun.  Walker was interviewed and admitted to possessing the shotgun.  Further investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) revealed that the short-barreled shotgun was not registered. Federal law requires such weapons to be registered in the National Firearms Registration and Transfer Record.

Walker pleaded guilty to a violation of Title 26, United States Code, Section 5861(d) which criminalizes the possession of certain firearms unless they are properly registered. He is scheduled to be sentenced on November 9, 2022, and faces a maximum penalty of 10 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The Meridian Police Department and the ATF are investigating the case.

Assistant U.S. Attorney Charles W. Kirkham is prosecuting the case.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

Source: United States Department of Justice News

      LITTLE ROCK—An England, Arkansas woman has pleaded guilty to her involvement in a scheme to defraud the U.S. Department of Agriculture out of more than $11.5 million that was intended to benefit farmers who had been discriminated against. Niki Charles, 49, pleaded guilty to conspiracy to commit mail fraud today before Chief United States District Judge D. Price Marshall.

      Charles admitted in court today that she and others solicited people to file false claims asserting they were discriminated against when they tried to get assistance from USDA for their farming operations. Charles said she verified statements from corroborating witnesses who submitted affidavits to support the claims, but none of those witnesses actually appeared before Charles. Those actions resulted in $4.5 million in loss, an amount Charles agreed to repay.

      Four other defendants, all of whom are sisters, have pleaded guilty in this case. Lynda Charles, 72, of Hot Springs; Rosie Bryant, 74, of Colleyville, Texas; Delois Bryant, 75, of North Little Rock; and Brenda Sherpell, 72, of Gainesville, Texas, each pleaded guilty on July 6, 2022, to conspiracy to commit mail fraud and to defraud the Internal Revenue Service. A sixth defendant, Everett Martindale, worked as an attorney and acted as the legal representative for most of the claimants that the five women recruited. Martindale is set for trial on August 30, 2022.

      The sisters also admitted that they hired a tax preparer to falsify tax returns, resulting in failure to report over $4.6 million to the Internal Revenue Service. That tax preparer, Jerry Green, pleaded guilty in January 2021. Judge Marshall will sentence those who pleaded guilty at a later date.

      As documented in plea agreements, the defendants submitted claims under two programs: the Black Farmers Discrimination Litigation (BFDL) settlement and the Hispanic and Women Farmers and Ranchers (HWFR) claim program. The BFDL settlement resulted from a class action lawsuit filed in 1997 in which a group of black farmers claimed they had been discriminated against when they applied for farm credit, credit servicing, or farm benefits from USDA. Similarly, the HWFR claim program was created after groups of Hispanic and women farmers filed separate lawsuits against USDA, also alleging discrimination in their farm benefit programs.

      Both BFDL and HWFR resulted in a claims process where farmers who could show they had applied for participation in a USDA benefit program and believed they had been discriminated against could make a claim for financial relief. A successful claim resulted in an award of $62,500. Of that, $50,000 would be made payable to the claimant, and $12,500 would be transferred directly to the Internal Revenue Service as a tax withholding. Altogether, the sisters were involved with 192 claims, almost all of which were successful, resulting in a loss of over $11.5 million. The claims were false because the claimants had not suffered discrimination and, in most cases, had not even attempted to farm.

      The indictment alleges that Martindale would deposit claim checks into his law firm trust account, issue a check from that trust account to the claimant, and withhold his attorney fee. For both BFDL and HWFR, attorney fees were restricted to $1,500 per claimant. The indictment alleges that the four sisters entered an agreement with Martindale in which they would split the attorney fee. The sisters also demanded and received additional money from the claimants themselves.

      The money received from a claim was income that should have been reported on the claimant’s tax return. The sisters and their accountant, Green, admitted that Green provided tax preparation services for the claimants they had recruited and that Green falsified the tax returns in order to create a tax refund.

      Three of the sisters—Lynda Charles, Rosie Bryant, and Delois Bryant—filed false tax returns of their own and used money from the conspiracy to purchase homes and properties, a Chevrolet van, and a Mercedes G550. Pursuant to the plea agreement, the sisters are required to relinquish any claim to the vehicles and to repay the fraud money they used to purchase properties. The money is due by the time they are sentenced, which has not yet been scheduled.

      The investigation is being conducted by USDA-OIG and IRS with assistance from the United States Marshals Service and the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys Cameron McCree, Bart Dickinson, and Amanda Fields.

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This news release, as well as additional information about the office of the

United States Attorney for the Eastern District of Arkansas, is available online at

https://www.justice.gov/edar

Twitter:

@EDARNEWS

Source: United States Department of Justice News

      LITTLE ROCK-A Conway man has been sentenced for importing and possessing illegally taken wildlife. Jackson Roe, 27, was sentenced on Monday afternoon by Chief United States District Judge D. Price Marshall, Jr., to three years probation and 150 hours of community service.

      In August 2015, the United States Fish and Wildlife Service received an anonymous tip about the illegal activity of a reptile hobbyist who sold and transported various reptiles into and out of the United States. Through undercover conversations with this individual, located in China, agents learned that he was shipping rare and endangered animals to an individual named Jackson Roe. Wildlife inspectors intercepted a package addressed to Roe that contained two live Chinese giant salamanders—an endangered species, in plastic jars, with wet moss. There were no holes in the box for air and no documents in the package.

      Roe admitted to investigators that he had illegally purchased several live amphibians from a Chinese dealer he met on Facebook. He stated he paid $450 for each salamander, and that he knew they were protected and expected to become extinct in the next ten years. In total, Roe received seven packages shipped from Hong Kong, which included six Chinese giant salamanders, a Vietnamese leaf turtle, an Indian roofed turtle, and a Chinese big-headed turtle. Roe also informed agents that he owned a Nile crocodile, a Morelet’s crocodile, and an American alligator, all of which were seized later that day by the Arkansas Game and Fish Commission. 

      The case was investigated by the U.S. Fish and Wildlife Service and prosecuted by Assistant United States Attorney Edward O. Walker.

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This news release, as well as additional information about the office of the

United States Attorney for the Eastern District of Arkansas, is available online at

https://www.justice.gov/edar

Twitter:

@EDARNEWS