Month: August 2022

Source: United States Department of Justice News

SAN JUAN, Puerto Rico – Jorge Droz Yapur and Yamil Fonseca Salgado were indicted by a federal Grand Jury in relation to separate bankruptcy fraud schemes, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico.

Jorge Droz Yapur was indicted in a bankruptcy fraud scheme for making materially false representations from May 2019 to August 2021 in order to defraud creditors as part of a bankruptcy proceeding, In re: Jorge Droz Yapur, Case No. 19-02999(MCF), all in violation of 18 U.S.C. § 157. Additionally, he is charged with nine counts of concealment of assets during his bankruptcy proceedings in violation of 18 U.S.C. § 152, and eight counts of making false statements in relation to such bankruptcy proceedings, in violation of 18 U.S.C. § 152.

The indictment alleges that during his bankruptcy proceedings, Jorge Droz Yapur concealed assets and income by using a bank account in his adult son’s name.  It further alleges that Jorge Droz Yapur testified under oath that his mother was at an elderly home and provided Puerto Rico tax returns as part of the bankruptcy proceedings wherein he claimed his mother as a dependent between the years 2015, 2016, 2017 and 2018, when in fact, he knew his mother had passed away in the year 2011.   

If convicted, Jorge Droz Yapur may be sentenced to up to five years of imprisonment for each violation of 18 U.S.C. § 157 and § 152, a two hundred and fifty thousand dollar fine, and three years of supervised release.

Separately, Yamil Fonseca Salgado was indicted in a bankruptcy fraud scheme where it is alleged that he made materially false representations between April 2018 and May 2022 in five separate bankruptcy cases in order to defraud his minor child of child support payments, all in violation of 18 U.S.C. § 157. Additionally, he is charged with one count of willful failure to pay approximately $107,200 in child support payments in violation of 18 U.S.C. § 228, and thirteen counts of false statements during his bankruptcy proceedings, in violation of 18 U.S.C. § 152.

The indictment alleges that Yamil Fonseca Salgado concealed in several bankruptcy filings, assets, income and his connection to a maintenance company by the name of CMM Janitorial, Inc.  The indictment further alleges that Yamil Fonseca Salgado concealed, in several bankruptcy filings, that he received money transfers via ATH Móvil from the bank account of a construction company controlled by close family members.  A Construction company which in turn collected monies from the public housing management company Yamil Fonseca Salgado worked for, and that he further received money through the use and control of a Banco Popular de Puerto Rico bank account in his grandmother’s name where he accessed funds for routine personal expenses.

 If convicted, Yamil Fonseca Salgado may be sentenced to up to two years for violating 18 U.S.C. § 228, five years of imprisonment for each violation of 18 U.S.C. § 157 and § 152, a two hundred and fifty thousand dollar fine, and three years of supervised release.

“The fraudulent use of bankruptcy and other court proceedings to defraud creditors or defraud children of child support payments are of grave concern, and the U.S. Attorney’s Office remains vigilant in the effort to hold accountable those who would defraud the government,” said U.S. Attorney Muldrow.

“Together with U.S. Attorney Muldrow and our law enforcement partners, we will continue to pursue fraud and abuse in bankruptcy cases,” stated Mary Ida Townson, U.S. Trustee for Georgia, Florida, Puerto Rico, and Virgin Islands (Region 21).  “I am thankful for the appointment by the U.S. Attorney of two Special Assistant U.S. Attorneys from our San Juan office that will allow us to prosecute all those who engage in fraudulent conduct.”  The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. 

“As the primary investigative agency responsible for addressing bankruptcy fraud, the FBI takes these cases very seriously. The relief offered by federal bankruptcy proceedings can be life-saving for honest individuals who have fallen on hard times due to legitimate reasons. Unfortunately, bankruptcy can also be used by wrong doers for a variety of sinister reasons,” said Joseph González, Special Agent in Charge of the FBI San Juan Field Office. “This not only causes creditors to lose money, but also results in higher fees and even higher taxes for the innocent. We urge the public to report bankruptcy fraud by contacting the U.S. Trustees Program at USTP.Bankruptcy.Fraud@usdoj.gov or to the FBI by calling 787-987-6500 or visiting tips.FBI.gov”.

“We are proud to be a part of the team that brought defendant Fonseca Salgado to justice for evading his child support obligations,” said Scott J. Lampert, Special Agent in Charge of the Office of Inspector General’s New York Regional Office which also covers Puerto Rico. “The Office of Inspector General will continue to work closely with our law enforcement partners to ensure that individuals like the defendant are held accountable for their actions when they violate the law.”

Both cases were referred to the U.S. Attorney’s Office for prosecution by the San Juan office of the U.S. Trustee.  The Jorge Droz Yapur matter was investigated by the FBI and is being prosecuted by Special Assistant U.S. Attorney José Capó Iriarte from the Office of the U.S. Trustee. The Yamil Fonseca Salgado matter was investigated by the U.S. Department of Health and Human Services of Inspector General (HHS-OIG) and is being prosecuted by Special Assistant U.S. Attorney José Capó Iriarte and Special Assistant U.S. Attorney José C. Díaz Vega from the Office of the U.S. Trustee.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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Source: United States Department of Justice News

A federal jury returned a guilty verdict against three San Angelo tax preparers whose fraudulent tax returns cost the IRS roughly $18 million, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.

Hugo Cesar Granados, the 60-year-old manager of Columbia Tax Service, his adult daughter, Blanca L. Granados, his adult son, Hugo Alberto Granados, and his employee, Saul Garcia-Soto, were indicted in May 2021. Mr. Garcia-Soto pleaded guilty to assisting in the preparation and presentation of false documents on July 12, 2022. The remaining defendants elected to proceed to trial and were convicted Friday evening of conspiracy to defraud the United States and multiple counts of aiding in the preparation and presentation of false documents.

Following the reading of the verdict, all three were immediately remanded into the custody of the U.S. Marshals Service.

“Columbia Tax Service doctored clients’ tax returns to inflate clients’ refunds and line the Granados’s pockets. Such blatant fraud is an affront to all conscientious taxpayers,” said U.S. Attorney Chad Meacham.  “As is their right, the Granadoses opted for a trial by jury. We are proud to have obtained a guilty verdict. I’m thankful to the IRS Criminal Investigation agents who ran this case to ground and to the members of the jury, who gave three days of their lives to bring these defendants to justice.”  

“When Hugo Cesar Granados, along with his daughter and son, used their family tax return preparation business, Columbia Tax Service, to file false tax returns and make a fast buck, they underestimated the special agents of IRS Criminal Investigation,” said IRS-Criminal Investigation Special Agent in Charge Christopher J. Altemus, Jr., Dallas Field Office. “Let these guilty verdicts be a reminder to others seeking to enrich themselves illegally – IRS CI special agents will find you; they will uncover your fraudulent schemes and hold you accountable.”

At trial, prosecutors introduced evidence that the elder Mr. Granados and his co-conspirators falsified their clients’ individual income tax returns (Forms 1040) in order to inflate the clients’ tax refunds.

They routinely fabricated clients’ Schedule A, itemized deductions, and Schedule C, sole proprietorship profit and loss statements, claiming the taxpayer owned a business when no such business existed, claiming unreimbursed employee expenses such as travel and per diem, and claiming business expenses related to maintenance, utilities, supplies, insurance, and professional services that were never incurred or grossly inflated. 

Testimony adduced at trial showed that Columbia Tax Service claimed more than $900,000 in income in 2015 and more than $1.3 million in income in 2016.

Mr. Garcia-Soto testified, saying that in 2016, Columbia Tax employees met with Hugo C. Granados because taxpayers were not receiving their refunds from the IRS. When questioned, the elder Mr. Granados asked the employees if they thought the company was doing something illegal. Mr. Garcia-Soto said that he, Blanca Granados, and Hugo A. Granados all replied that they thought Columbia Tax was doing something illegal. In response, Hugo C. Granados just smiled and turned back to his computer.

In a Skype chat introduced at trial, Blanca Granados wrote to a co-worker: “Fraud is ridiculous here yo . . . I swear.”

Ten taxpayer clients also testified. Two women admitted that they did not operate daycare centers as stated in their returns, but rather cared for family members for free, while a man admitted that his wife did not operate a retail business that generated $19,00 in expenses as stated on the couple’s return.

Prosecutors also introduced into evidence the company’s “tax preparation manual,” a handbook that outlined exactly how to commit fraud.

In discussing preparation of Schedule C of the tax return, the manual stated: “This is where your training and knowledge of income and deductions will make a big difference in the amount of refund the taxpayer will be obtaining. A determination has to be made if the return needs additional income to generate the maximum earned income and other credits or if the return has a substantial amount of income (Adjusted Gross Income) and needs to come down to maximize the earned income and other credits.” In other words, the manual advised tax preparers to manipulate income to maximize refunds rather than referring to the law to determine whether an activity was a business for income tax purposes and whether expenses properly qualified as a business deduction.

Jurors ultimately concluded that the conspirators submitted numerous fraudulent tax returns. Analysts put the estimated tax loss at roughly $18 million for tax years 2013-2017.

Hugo Cesar Granados now faces up to 14 years in federal prison; Blanca Granados faces up to 14 years; Hugo Alberto Granados faces up to 17 years. Their sentencing date has not yet been set.

Saul Garcia-Soto faces up to three years and is slated to be sentenced in October.

The Internal Revenue Service – Criminal Investigations conducted the investigation. The San Angelo Division of the Northern District of Texas, including Assistant U.S. Attorneys Jeffrey Haag, Ann Haag, Amy Burch, and Paulina Jacobo, prosecuted the case.

Source: United States Department of Justice News

NASHVILLE – Three Nashville area men were indicted yesterday in a conspiracy to steal firearms from a federal firearms licensee (FFL), announced U.S. Attorney Mark H. Wildasin.

Tyler Cunningham, 22, Ryan Dillard, 36, and Corey Summers, 23, are also charged with possession of stolen firearms and Dillard is charged with being a convicted felon in possession of a firearm.  Cunningham and Dillard are currently in custody and Summers is currently being sought by law enforcement. 

According to the indictment, the trio burglarized an automotive repair shop in Middle Tennessee and stole a truck to use in the burglary of an FFL.  The indictment alleges that on July 8, 2022, the defendants burglarized a firearms dealer in Greenbrier, Tennessee, and stole nine firearms, and on July 14, 2022, they burglarized a firearms dealer in Woodbury, Tennessee, where they stole 28 firearms.  The indictment further alleges that the defendants offered to sell the stolen firearms to a third party.

If convicted, the defendants face up to five years in prison on the conspiracy charge and up to 10 years in prison on each theft and possession charge.  Additionally, Dillard faces up to 15 years on the felon in possession charge. 

Anyone with information on the whereabouts of Corey Summers or with additional information about these crimes should contact ATF at (888) ATF-TIPS (1-888-283-8477).

Information can also be sent to ATFTips@atf.gov  through ATF’s website at www.atf.gov/contact/atftips .

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Greenbrier Police Department; the Rutherford County Sheriff’s Office; the Cannon County Sheriff’s Office; the Wilson County Sheriff’s Office; the Robertson County Sheriff Office; the Tennessee Highway Patrol; the Metropolitan Nashville Police Department; and the Middle Tennessee State University Police Department.  Special Assistant U.S. Attorney Steven T. Brantley is prosecuting the case. 

An indictment is merely an accusation.  The defendants are presumed innocent until proven guilty in a court of law. 

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Source: United States Department of Justice News

CHARLESTON, SOUTH CAROLINA —United States Attorney Adair F. Boroughs will join Deputy Attorney General Lisa O. Monaco to participate in the 39th Annual National Night Out today as part of a department-wide effort to bring attention to events that build stronger communities.

Established in 1984 from a Department of Justice Bureau of Justice Assistance (BJA) grant, the goal of National Night Out is to build relationships with and between communities and law enforcement. National Night Out is an annual community-building campaign that promotes police-community partnerships and neighborhood camaraderie to make our neighborhoods safer, better places to live. In most areas of the country, the program culminates annually on the first Tuesday of August.

“I am honored to join our law enforcement partners and community members for National Night Out,” said U.S. Attorney Boroughs. “South Carolina is safer when police officers and the communities they protect see their common goals and build relationships.”

OPEN PRESS

National Night Out in the Greater Charleston Area

WHO: Deputy Attorney General Lisa O. Monaco and United States Attorney Boroughs will attend two National Night Out events in Charleston with both the Charleston Police Department and North Charleston Police Departments.

WHEN: Tuesday, Aug. 2, 2022 approximately 5:30 – 7:30 p.m. EDT

WHERE: Eastside National Night Out with the Charleston Police Department at Mall Park 68 Columbus Street, Charleston, SC

North Charleston Police Department National Night Out at Riverfront Park 1061 Everglades Avenue, Charleston, SC

For information on National Night Out events in your community, visit https://natw.org/.

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