Tax Attorneys and Insurance Agent Sentenced in Tax Shelter Scheme

Source: United States Department of Justice Criminal Division

Two tax attorneys and an insurance agent were sentenced today to a combined 16 years in prison for conspiring to defraud the United States and helping clients file false tax returns, based on their promotion and operation of a fraudulent tax shelter.

Michael Elliott Kohn, an attorney, was sentenced to seven years in prison. Catherine Elizabeth Chollet, also an attorney, was sentenced to four years in prison. David Shane Simmons, an insurance agent and broker, was sentenced to five years in prison.

According to court documents and evidence presented at trial, from 2011 to November 2022, Kohn and Chollet, both of St. Louis, and Simmons, who is based out of Jefferson, North Carolina, promoted, marketed and sold to clients the Gain Elimination Plan, a fraudulent tax scheme.

The defendants designed the plan to conceal clients’ income from the IRS by inflating business expenses through fictitious royalties and management fees. These fictitious fees were paid, on paper, to a limited partnership largely owned by a charity. In reality, Kohn and Chollet fabricated the fees.

Kohn and Chollet advised clients that the plan’s limited partnership was required to obtain insurance on the life of the clients to cover the income that was allocated to the charitable organization. The death benefit was directly tied to the anticipated profitability of the clients’ businesses and how much of the clients’ taxable income was intended to be sheltered.

Simmons earned more than $2.3 million in commissions for selling the insurance policies, splitting the commissions with Kohn and Chollet. Kohn and Chollet received more than $1 million from Simmons. Simmons also filed false personal tax returns that underreported his business income and inflated his business expenses, resulting in a tax loss of more than $480,000.

In total, the defendants caused a tax loss to the IRS of more than $22 million.

In addition to the terms of imprisonment, U.S. District Judge Kenneth D. Bell for the Western District of North Carolina ordered each defendant to serve three years of supervised release and to pay $22,515,615 in restitution to the United States.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Dena J. King for the Western District of North Carolina made the announcement.

IRS Criminal Investigation investigated the case.

Trial Attorneys Kevin Schneider and Todd Ellinwood of the Tax Division and Assistant U.S. Attorney Caryn Finley for the Western District of North Carolina prosecuted the case.

Maryland Store Owner Pleads Guilty to Tax Evasion

Source: United States Department of Justice Criminal Division

A Maryland man who owns a retail store pleaded guilty today to evading his income taxes by not reporting cash taken from his business.

According to court documents and statements made in court, for over 20 years, William M. Bundy of District Heights owned and operated Bab’s Inc., a store located in District Heights, that only accepted cash payments. From 2017 through 2021, Bundy received wages from Bab’s but also took cash from the business without reporting that cash as income on his tax returns. He used the cash for personal expenditures, including gambling. Over a five-year period, Bundy gambled and lost over $3 million at two Maryland-area casinos, funded in part by $2.2 million in cash from Bab’s.

In total, for the years 2017 through 2021, Bundy had additional taxes due of $672,558.

Bundy is scheduled to be sentenced on Feb. 21, 2025. He faces a maximum penalty of five years in prison. 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.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorney Michael C. Vasiliadis of the Tax Division and Assistant U.S. Attorney Coreen Mao for the District of Maryland are prosecuting the case.

California Teenager Pleads Guilty in Florida to Making Hundreds of ‘Swatting’ Calls Across the United States

Source: United States Department of Justice Criminal Division

Alan W. Filion, 18, of Lancaster, California, pleaded guilty today to four counts of making interstate threats to injure the person of another. Filion faces a maximum penalty of five years in prison on each count. Filion is scheduled to be sentenced on Feb. 11, 2025.

“This prosecution and today’s guilty plea reaffirm the Justice Department’s commitment to using all tools to hold accountable every individual who endangers our communities through swatting and hoax threats,” said Deputy Attorney General Lisa Monaco. “For well over a year, Alan Filion targeted religious institutions, schools, government officials, and other innocent victims with hundreds of false threats of imminent mass shootings, bombings and other violent crimes. He caused profound fear and chaos and will now face the consequences of his actions.”

“Alan Filion not only intended to cause as much harm as possible, but he also attempted to profit from these criminal activities by offering swatting-for-a-fee services,” said FBI Deputy Director Paul Abbate. “Swatting poses severe danger to first responders and victims, wastes significant time and resources, and creates fear in communities. The FBI will continue to work with partners to aggressively investigate and hold accountable anyone who engages in these activities.”

According to the plea agreement, from approximately August 2022 to January 2024, Filion made more than 375 swatting and threat calls, including calls in which he claimed to have planted bombs in the targeted locations or threatened to detonate bombs and/or conduct mass shootings at those locations. He targeted religious institutions, high schools, colleges and universities, government officials, and numerous individuals across the United States. Filion was 16 at the time he placed the majority of the calls.

Filion intended for his calls to cause large-scale deployment of police and emergency-services units to the targeted locations. During these calls, he provided information to law enforcement and emergency services agencies that he knew to be false, such as false names, false claims that he and others had placed explosives in particular locations, false claims that he and others possessed dangerous weapons, including firearms and explosives, and false claims that he and/or other individuals had committed, or intended to imminently commit, violent crimes.

During the time that dispatchers spent on the phone with Filion, they were unavailable to respond to other emergencies. Additionally, in response to many of his calls, armed law enforcement officers were dispatched to the targeted addresses, and likewise were made unavailable to respond to other emergencies. In some instances, armed law enforcement officers approached and entered targeted residences with their weapons drawn and detained individuals who occupied the residences. In a post on Jan. 20, 2023, Filion claimed that when he swats someone, he “usually get[s] the cops to drag the victim and their families out of the house, cuff them and search the house for dead bodies.”

According to court documents, Filion became a serial swatter for both profit and recreation. He claimed in a Jan. 19, 2023, online post that his “first” swatting was like “2 to 3 years ago” and that “6-9 months ago [he] decided to turn it into a business. . .” On several occasions, Filion placed posts on social-media channels advertising his services and swatting-for-a-fee structure.

On Jan. 18, Filion, then 17-years-old, was arrested in California on Florida state charges arising from a May 2023 threat he made to a religious institution in Sanford, Florida. In that threat, he claimed to have an illegally modified AR-15, a Glock 17 pistol, pipe bombs, and Molotov cocktails. He said that he was going to imminently “commit a mass shooting” and “kill everyone” he saw. Filion pleaded guilty today in federal court to making that threat.

Filion’s federal charges were brought under the Federal Juvenile Justice & Delinquency Prevention Act (JDA). As noted in the criminal information filed on Oct. 21, Filion was 17 when the instant charges were filed against him. Filion has remained in custody since his arrest on state charges in January.

Filion also pleaded guilty to making three other threatening calls – an October 2022 call to a public high school in the Western District of Washington, in which he threatened to commit a mass shooting and claimed to have planted bombs throughout the school; a May 2023 call to a Historically Black College & University in the Northern District of Florida, in which he claimed to have placed bombs in the walls and ceilings of campus housing that would detonate in about an hour; and a July 2023 call to a local police-department dispatch number in the Western District of Texas, in which he falsely identified himself as a senior federal law enforcement officer, provided the officer’s residential address to the dispatcher, claimed to have killed his (federal officer’s) mother, and threatened to kill any responding police officers.  

The FBI and U.S. Secret Service are investigating the case. Valuable assistance was provided by the Seminole County (Florida) Sheriff’s Office; the Anacortes (Washington) Police Department; the Florida Department of Law Enforcement; the California Department of Justice; the Los Angeles County (California) Sheriff’s Office; and the Volusia County (Florida) Sheriff’s Office.

Assistant U.S. Attorneys Cherie L. Krigsman and Kara Wick for the Middle District of Florida and Trial Attorney Jacob Warren of the National Security Division’s Counterterrorism Section are prosecuting the case, with valuable assistance from the State Attorney’s Office for Seminole County, Florida, 18th Judicial Circuit, and the U.S. Attorneys Offices for the Western District of Washington, Northern District of Florida, Western District of Texas, and District of Columbia.

Defense News: NSA Bahrain, NAVSEA Conduct Annual Oil Spill Response Training Exercise

Source: United States Navy

The five-day exercise aimed to demonstrate SUPSALV’s readiness in deploying its Tier II and III spill response capabilities from the Emergency Ship Salvage Material (ESSM) base, and to increase the overall proficiency of all personnel involved in oil spill responses.

SUPSALV is responsible for providing offshore and salvage-related spill response equipment and expertise to Navy operational commands. SUPSALV procures, operates, and maintains spill response equipment through NAVSEA contracts. In order to comply with federally mandated training and drill requirements, the Navy elected to participate in the National Preparedness for Response Exercise Program (NPREP). SUPSALV is comparable to an oil spill response organization (OSRO) and must deploy its equipment in each region of responsibility. This exercise allowed NSA Bahrain to meet NPREP requirements for an equipment deployment exercise in the Bahrain region for 2024.

“Oil spills, in the absence of good planning and preparedness to combat them, have the potential to turn into serious disasters,” said Johnson Pereira, acting environmental division director, NAVFAC EURAFCENT. “The SUPSALV Spill Response Training Exercise plays a major role in increasing our level of readiness and preparedness to combat oil spill incidents and mitigate its effects and the damage to the marine environment, and share our expertise and extend cooperation with host nation entities.”

The SUPSALV team, led by Robert McClellan, NAVSEA 00C26 Environmental Operations, NAVSEA, simulated various aspects of fuel-spill response, including containment, cleanup, environmental monitoring, and the promotion of health and safety measures.



“The ability to come out and put this equipment in the water and operate it is vital to readiness,” said McClellan. “There are so many issues in the maintenance cycle that can only be identified and addressed by using it in the field. Pairing that with the opportunity to coordinate with our other response partners, both on and off base, is what maximizes these events and ensures we are able to respond in a meaningful and effective way.”



In attendance were several host-nation agencies including Bahrain Petroleum Company (BAPCO), APM Terminals, Royal Bahraini Naval Force, Ports and Maritime Affairs (PMA). Participants received a tour of the SUPSALV Emergency Ship Salvage Material (ESSM) facility where they received a briefing on the capabilities and overall functions of various salvage systems, and equipment including a command van, rigging van, salvage skimmer system van, oil containment boom van, high-speed skimmer support van, shop and firefighting system vans. Participants also observed an in-water demonstration of the SK0050 high-speed current buster and boom-handling boats along with the oil-containment boom in an operational-skimming configuration. The participating agencies were able to assess readiness and enhance their collective ability to mitigate environmental damage and protect public health.



“Exercises like this provide our personnel the sets and reps we need to respond to any situation we encounter from an environmental protection standpoint,” said Capt. Zachariah Aperauch, commanding officer, NSA Bahrain. “The goal is to be ready for all potential contingencies, and by training to a high standard and maintaining open lines of communication with our host nation partners, we continually push towards that objective.”



NSA Bahrain’s mission is to support U.S. and coalition maritime operations throughout the U.S. 5th Fleet area of operations by providing security for ships, aircraft and tenants on board NSA Bahrain and assigned detachments. NSA Bahrain provides efficient and effective shore services to sustain the fleet, enable the fighter and support the family with honor, courage and commitment.

Defense News: Navy Career Development Symposium Coming to the Southeast

Source: United States Navy

CDS is an opportunity for Sailors to directly interact with MyNavy HR representatives and learn important career-enhancing information. Sailors can meet with detailers, enlisted community managers, and other policy experts. CDS is also an opportunity to learn about professional development opportunities like the U.S. Naval Community College, Navy COOL, and MyNavy Coaching.

CDS Southeast will be held at Naval Air Station Jacksonville on Dec. 3, Naval Station Mayport on Dec. 4, and Naval Submarine Base Kings Bay on Dec. 5. Each event will start with an all-hands call with senior MyNavy HR leaders.

“Through CDS, we provide Sailors with the opportunity to take control of their careers,” said Navy Personnel Command Force Master Chief Bill Houlihan. “We bring senior leadership from across MyNavy HR as well as detailers and other policy experts to answer questions and provide career guidance to Sailors in the fleet.”

Naval Air Station Jacksonville will start CDS with an all-hands call at 8:30 a.m. at the base chapel, followed by events at the River Cove Bingo Hall. CDS at Naval Station Mayport will start at 8:30 a.m. with an all-hands call at the base gym, followed by events at Ocean Breeze, the base chapel, Stark Classroom and the Beacon. CDS at Naval Submarine Base Kings Bay will start at 8:30 a.m. with an all-hands call at the Triplex.

To view the full schedule of events for all three days, visit: https://www.mynavyhr.navy.mil/Career-Management/Talent-Management/CDS/