Duluth Nail Salon Proprietors Charged with Tax Fraud Conspiracy

Source: United States Department of Justice News

MINNEAPOLIS – A Duluth couple has been charged with conspiracy and tax fraud after failing to pay taxes on their nail salon business income, announced U.S. Attorney Andrew M. Luger.

According to court documents, An Ngoc “Ritchie” Nguyen, 44, was the operator and sole proprietor of Q Nails salon located in Duluth. Tram Anh “Ann” Nguyen, 41, was the operator and sole proprietor of Crystal Nails salon located in Superior, Wisconsin. From at least 2016 through at least October 2020, the defendants unlawfully conspired with each other and others to defraud the Internal Revenue Service by reporting on their individual income tax returns only the credit card sales, or including a false, nominal amount of cash sales, from their Q Nails and Crystal Nails salons. The defendants also falsely claimed to reside at two different addresses and agreed to divide their three children—with whom they jointly resided—as dependents in order to fraudulently claim head of household status on both of their individual income tax returns.

Ritchie Nguyen is charged with one count of conspiracy to defraud the United States and four counts of making and subscribing a false tax return. Ann Nguyen is charged with one count of conspiracy to defraud the United States and three counts of making and subscribing a false tax return. The defendants are scheduled to make their initial appearances in U.S. District Court on March 7, 2023, before Magistrate Judge Leo I. Brisbois in Duluth.

This case is the result of an investigation conducted by IRS – Criminal Investigations.

Assistant U.S. Attorney Kimberly A. Svendsen is prosecuting the case.

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

Former Digital Interactive Whiteboards Salesman Pleads Guilty to Rigging Bids to the Largest Public-School System in the United States

Source: United States Department of Justice News

A former salesman pleaded guilty today for his leading role in a bid rigging scheme involving the sales of certain brands of digital interactive whiteboards to the New York City Department of Education Public Schools (NYCDOE).

According to court documents filed in the U.S. District Court for the Southern District of New York, Dwayne Johnson, of Islandia, New York, engaged in a conspiracy from late 2018 through at least October 2020, to subvert the NYCDOE’s competitive bidding process and ensure that companies controlled by his co-conspirators submitted winning bids for the sale of digital interactive white boards to the NYCDOE. Johnson’s scheme ensured that all members of the conspiracy profited at the NYCDOE’s expense: Johnson sold boards to his co-conspirator that won the bid, the winning co-conspirator made the sale to the NYCDOE, and the losing co-conspirator was paid to install the boards in the classrooms. Johnson also created and submitted sham bids in order to ensure his co-conspirator won the bid.

“This crime targeted the country’s largest public school system, which serves more than a million school children every day,” said Acting Director of Criminal Enforcement Emma Burnham of the Justice Department’s Antitrust Division. “We will work tirelessly to prevent and punish any bid-rigging schemes that victimize our local governments and our schools. The division and our partners remain committed to protecting the government procurement process at all levels of government.”

“As charged, the defendant interfered with a fair and competitive process; actions that undermine the public trust,” said Special Commissioner Anastasia Coleman of the Office of the Special Commissioner of Investigation (SCI) for the New York City School District. “This investigation demonstrates the commitment of SCI and its partners to protecting New York City public schools from schemes that undermine competition among vendors, and which ultimately affect the learning environment of all New York City students.”

Johnson pleaded guilty to a violation of Section 1 of the Sherman Act. For individuals, the maximum penalty is 10 years in prison and a $1 million criminal fine. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The Antitrust Division’s New York Office is prosecuting the case, which was investigated with the assistance of the FBI New York Field Office and the SCI for the New York City School District.

Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.

Defense News: U.S. Donates Equipment to Pakistan Navy School after Participating in Naval Exercise

Source: United States Navy

Nearly a dozen NAVCENT personnel, including Vice Adm. Brad Cooper, commander of NAVCENT, U.S. 5th Fleet and Combined Maritime Forces, visited the Special Children School at Pakistan Naval Station Karsaz in Karachi the day after maritime drills for exercise Aman 2023 concluded at sea. NAVCENT personnel delivered physical therapy and mobility equipment to the school.

“Relationships among maritime partners extend beyond operations at sea, so we are proud to support Pakistan Navy’s special children’s school in a meaningful way,” said Cooper. “Our visit and exercise participation reflect Pakistan’s leading role in maritime security, the depth of our strong relationship and mutual commitment to safeguarding regional seas.”

U.S. guided-missile destroyer USS Truxtun (DDG 103) participated in exercise events at sea while Marines from Fleet Anti-Terrorism Security Team Central Command (FASTCENT) and a U.S. Navy explosive ordnance disposal team trained alongside Pakistani counterparts in Karachi.

Led by the Pakistan Navy, Aman 2023 aimed to strengthen relationships and enhance interoperability among participating navies. The exercise included events focused on maritime defense, vessel boarding procedures, explosive ordnance disposal, aircraft integration and ship navigation.

U.S. forces also participated in the previous iteration of the exercise in February 2021.

The U.S. 5th Fleet operating area includes 21 countries, the Arabian Gulf, Gulf of Oman, Red Sea, parts of the Indian Ocean and three critical choke points at the Strait of Hormuz, Bab al-Mandeb and Suez Canal.

Defense News: Carrier Air Wing Five Jets Participate in Aero India 2023

Source: United States Navy

Aero India 2023 offers a venue to build stronger relationships between the U.S. and India, as well as with other participating nations. Department of Defense leadership and participating units’ attendance underscores the importance of the tight-knit U.S.-India partnership and our shared commitment to a free and open Indo-Pacific.

“Participating in Aero India is an excellent opportunity for our squadrons to be showcased alongside our Indian partners,” said Cmdr. Adam Cohen, executive officer, VFA 27. “Our squadrons routinely operate throughout the entire Indo-Pacific and it is always a great experience to visit a partner nation’s country in person, and showcase the professionalism of the Royal Mace, Diamondback team and Carrier Air Wing (CVW) 5.”

VFA-27 operates the F/A-18E Super Hornet and VFA-102 operates the F/A-18F Super Hornet as part of Carrier Air Wing (CVW) 5, which deploys with Carrier Strike Group (CSG) 5. As part of the strike group, CVW 5 completed a 7th Fleet deployment in 2022 where they provided airpower in support of the USS Ronald Reagan Carrier Strike Group while it operated with Allies and partners in support of a free and open Indo-Pacific. Those missions included numerous joint and combined multi-lateral operations demonstrating flexibility and capability in multiple warfighting domains, ensuring commitment to regional stability and Allied and partner relationship-building.

CVW 5 aircraft have routinely operated with the Indian Navy including during exercise Malabar 2022 in November off the coast of Japan and in June 2021, CVW 5 conducted multi-axis training off the coast of India, that included a P-8I maritime patrol and reconnaissance aircraft, MiG-29K fighters from the Indian Navy Air Squadron 303, and Su-30 fighter aircrafts from the Indian Air Force 222 Squadron.

The “Royal Maces” and “Diamondbacks” are forward-deployed to Marine Corps Air Station Iwakuni, Japan. The squadrons directly support the 7th Fleet area of operations and enable a free and open Indo-Pacific region.

7th Fleet is the U.S. Navy’s largest forward-deployed numbered fleet, and routinely interacts and operates with Allies and partners in preserving a free and open Indo-Pacific region.

Defense News: The Iwo Experience: Investigating LHD-7’s Nuanced Approach for its Successful 16-Months in the Yards

Source: United States Navy

While Navy Times’ bread is not buttered going to press with good news stories, occasionally they go out of their way to give credit when due. Such an occasion took place June 10, when the outlet published an article about the USS Iwo Jima (LHD 7) celebrating the hard work of its crew by buying out a local movie theater and taking the entire crew to a private, opening day showing of Top Gun: Maverick, complete with popcorn and soda.   

The article highlights only one portion of the “IWO Experience” – a dynamic, multi-faceted, innovative framework to thank Sailors for their hard work, build community on the ship, and keep spirits high while in the shipyard. 

Many Sailors will all agree that the shipyard is one of the worst times in their careers.  Iwo Jima charted an intentional course to flip the script in an attempt to make the maintenance phase one of the best times in their Sailors’ careers.  Iwo Jima was scheduled for an extended drydocking at General Dynamics – NASSCO Norfolk for approximately 16 months.  

To investigate the success made by the Iwo Jima crew during its maintenance phase, consider the following four tenets where the captain at that time, Capt. Judd Krier, said rubber and road collided.   

1.     Maintain Connection with the crew

Following their seven-month 2021 underway, Iwo Jima leadership focused on establishing personal connections between Sailors across the ranks and outside the workplace. Rather than simply putting their noses to the grind and enduring the Spartan conditions, Iwo leaders made sure opportunities were readily available to take Sailors from the yards into the community. This was achieved various ways. Religious Ministries interfaced with the local populace to create community relations events. In 2022, the crew partnered with 12 local organizations and had 500 Sailors invest over 2,100 hours in the local community, which led to invitations to other local events. MWR hosted many command sports competitions and outings such as deep-sea fishing, bowling nights, axe throwing, and Busch Gardens Hallowscream, to name a few.

Creating connective tissue amongst crew members was not limited to command activities outside the skin of the ship. Accountability measures, such as establishing the BlackBerry AtHoc system streamlined critical command communications – much like a school app parents, teachers, and school administrators exchange information with – by alerting Sailors of emergencies as well as significant changes to the ship schedule or configurations.

Additionally, all events and recognitions were posted to command social media accounts, a cohesive means to celebrate one another and keep family and friends apprised of their Sailors’ accomplishments.

Finally, All Hands Calls, Captain’s Calls, and Safety Stand Downs were held at off-site locations to facilitate bigger groups and encourage more open participation outside an industrial setting. The first CO’s Call in March 2022, for example, was accompanied with food, a DJ, prize giveaway, tee-shirts, and a guest speaker. Iwo Jima planners contrived these unorthodox gatherings as fun and energetic ways to espouse crew cohesion in order to give confidence and a greater voice to those who may have otherwise been unwilling to share their thoughts during the more traditional, staid formations where a good idea or observation might go by the wayside for fear of speaking up.

2.     Sailor recognition and rewards

The ‘Top Gun: Maverick’ movie outing was not the first time Iwo Jima leaders were featured in the news for lifting shipboard morale. Earlier that spring, The Daily Press ran a story chronicling the crew’s hard work in bringing aboard four well-known World Wrestling Entertainment wrestlers who spent a day mingling with the crew and signing autographs as the ship lay in the yards. Later that evening, nearly 300 Iwo Jima Sailors received free WWE tickets to attend Monday Night Raw at the Norfolk Scope Arena.

Iwo Jima leaders planned these types of events quarterly and similar in name to the overall approach called them “Iwo Jima Experiences.” Other examples included a family outing to a Norfolk Tides baseball game and the command holiday party, another innovative idea led by the ship’s MWR who bought out the 85,000 square foot Apex Entertainment warehouse in downtown Virginia Beach, a huge hit with Iwo Jima Sailors

In addition to the scheduled quarterly, rewards and recognition came out of nowhere – the ship’s “Surprise and Delight” events – and included spontaneous ice cream days, command tumbler giveaways, and the ‘Pause for Paws’ event where two Navy service dogs came aboard every other month to bolster spirits. The Captain would even send personalized Navy anniversary emails to each Sailor on the date they entered the Navy. 

The team also created a ‘Warrior of the Week’ as well as five ‘Core Values Champions’ each month – programs reinforcing (rather than simply paying lip service to) what Navy ideals and hard work in the shipyards looks like. Atop the public attaboy, the Core Values Champions received parking passes for the shipyard and a coin from the CO. The Warrior of the Week received a parking pass and a NEX gift card, courtesy of the Navy League.

3. Innovative Workdays

From the outset of the yard period, the triad supported command physical fitness (PT) hours (delegated to the Department Head level) in which specific departments had designated afternoon times for its Sailors to focus on fitness and wellness, thus enabling departments to pursue the physical readiness portion of the mission, efforts that paid off with a noted drop in crew members having to take part in the mandatory Fitness Enhancement Program throughout 2022.

Additionally, the command encouraged professional development hours where departments could assign readings, projects, and other assignments to improve Sailor knowledge. It was also time set aside to allow Iwo Jima Sailors to study for advancement exams and major qualifications. Due to limited numbers of computer assets and workout equipment on the barge, workdays were developed by problem solving teams – a cross section of ranks who together helped establish PT hours and professional development hours that were key in allowing personnel the access needed to achieve Navy workplace goals. 

4.Purpose

Overall, USS Iwo Jima’s success during their yard and maintenance period could be attributed to leadership connecting and engaging with their Sailors. Atop all the nuanced methods introduced to inspire the crew, they also stayed with a basic, time-honored principle – do what you can to make your Sailors feel valued individually and in their occupations. 

After the last couple of years, especially post-pandemic, leadership needs to motivate its crew to ensure we’re cultivating the best talent by enriching an atmosphere that develops and retains its people by engaging both hearts and minds. To meet this end, outlining and magnifying individual, work center, and unit roles are absolutely critical. This is true in the Navy and all organizations. A recent study published by Harvard Business Review found when companies provided a clearly-defined understanding of their value within the organization, they had better growth as compared with companies that failed to develop or leverage their purpose. Specifically, 52% of purpose-driven companies experienced 10% or greater growth, while just 42% of non-purpose-driven companies realized similar gains. 

Purpose also delivers benefits in terms of the work experience. Research by the University of Sussex found leaders who delivered on purpose via three main things – a clear vision, commitment to stakeholders, and strong morals – became companies or organizations in which its people were happier and more productive.

For Navy commands, this translates to better occupational satisfaction that ultimately improves retention. Since going up on blocks in early 2022, USS Iwo Jima can articulate its success through several official Navy accolades and awards as many commands often do. The Green Safety Award, the Black E, the Golden Anchor and other awards that help a unit qualify for the Battle “E” are all excellent awards. Perhaps most telling for the LHD-7 team however, is the fact that Iwo Jima had the highest Zone A and Zone B retention of all east coast LHDs while also having the lowest Zone A attrition. 

The real work began early on when, rather than a command philosophy, the triad established Learn, Improve, Wellness, Ownership, and Safety as Iwo Jima’s core values. A companion article discusses how these core values drove the IWO Experience. 

Iwo Jima’s 16 months in the yards were marked by a ship that got out of the yards on schedule with a crew now ready to get through basic phase, across the horizon, and back into the fight.

This may have been best said by Commander, Unites States Fleet Forces, Adm. Daryl Caudle, during January’s Surface Navy Association Symposium, who singled out Iwo Jima Sailors for their incredible accomplishments in the most austere confines.       

“[IWO JIMA is] absolutely owning maintenance as a mission,” Caudle said.   “Their team is striking the right balance of effort between Sailor readiness and mission readiness through things like setting up a private screening of Top Gun: Maverick in a local theater, mental health maintenance days, recognition of Core Value Champions, and more. They are absolutely killing it during the toughest environment we face – the shipyard.”

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