Category: Security News

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Illinois Man Sentenced for Preparing False Tax Returns

Source: United States Department of Justice Criminal Division

An Illinois tax return preparer was sentenced yesterday to 16 months in prison for preparing and filing false tax returns for clients. 

According to court documents and statements made in court, Gary Sandiego, of Barrington, owned and operated G. Sandiego and Associates, a tax preparation business. For tax years 2014 through 2017, he prepared and filed false income tax returns for his clients. Instead of relying on information provided by the clients, Sandiego either inflated or entirely fabricated expenses to falsely claim on the returns residential energy credits and employment-related expense deductions. As a result, Sandiego caused a tax loss to the IRS of approximately $4,586,154. 

In addition to his prison sentence, U.S. District Court Judge Jorge L. Alonso for the Northern District of Illinois ordered Sandiego to serve one year of supervised release and pay $2,910,442 in restitution to the IRS.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorneys Andrew Kameros and Sara Henderson of the Justice Department’s Tax Division are prosecuting the case.

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Owner of Arkansas Tree Service Business Sentenced for Tax Fraud

Source: United States Department of Justice Criminal Division

An Arkansas man was sentenced yesterday to 20 months in prison for filing a false individual income tax return.

According to court documents and statements made in court, Carlos Gonzalez, 59, of Rogers, filed false tax returns that underreported the gross receipts from his tree-trimming and removal business, Charley’s Tree Service. From 2014 through 2020, Gonzalez cashed more than $3 million in customer checks instead of depositing them into his business’ bank account, knowing that his return preparer relied on the bank account records when preparing his returns. In addition, he did not tell his return preparer about the cashed checks. As such, the return preparer prepared tax returns that underreported gross receipts from his business resulting in a tax loss to the IRS of more than $900,000.

In addition to his prison sentence, U.S. District Court Judge Timothy Brooks for the Western District of Arkansas ordered Gonzalez to serve one year of supervised release and to pay approximately $1.4 million in restitution to the United States and the State of Arkansas.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney David Clay Fowlkes for the Western District of Arkansas made the announcement.

IRS Criminal Investigation investigated the case.

Trial Attorneys Curtis Weidler and Wilson Stamm of the Tax Division and Assistant U.S. Attorney Carly Marshall for the Western District of Arkansas prosecuted the case.

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United States Files Suit for Unpaid Duties and Penalties for Alleged Failure to Pay Duties on Imported Chinese Bedroom Furniture

Source: United States Department of Justice Criminal Division

The United States has filed a civil lawsuit against Lawrence Bivona, who was the President of LaJobi Inc., a Delaware corporation that imported Chinese-manufactured children’s bedroom furniture into the United States. The lawsuit alleges that Bivona made false statements to customs officials and, as a result, avoided paying antidumping duties owed on the imported furniture.

At the time merchandise is entered into the United States, the importer is responsible for providing all information necessary to enable Customs and Border Protection (CBP) to assess the applicable duties owed on the goods, including any antidumping duties applicable to the merchandise. Antidumping duties are trade remedies that help protect domestic industries from unfair trade practices by foreign businesses and countries, such as government subsidies or below market sales.

The United States’ complaint contends that Bivona caused LaJobi to misrepresent the identity of the manufacturers of the children’s furniture imported from China. In particular, the United States alleges that Bivona falsely represented that the furniture was manufactured by Chinese entities subject to duty rates of approximately 7% or less, and failed to disclose that the furniture was actually manufactured by entities subject to duty rates of 216%.

“Anti-dumping duties play an important role in countering illegal foreign trade practices and protecting U.S. manufacturers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to pursue those who seek to gain an unfair advantage by violating our trade laws.”

“These civil penalties support the seriousness of CBP’s trade mission and protect the U.S. economy, while maintaining fair trade and preserving American jobs from predatory practices,” said Executive Director Susan Thomas of CBP’s Cargo and Conveyance Security, Office of Field Operations. “CBP’s antidumping and countervailing duties enforcement aims to mitigate harm by anti-competitive behavior and supports a level playing field for U.S. companies injured by unfair trade practices.”

“We take very seriously our role in protecting the U.S. economy from illegal and predatory trade practices,” said Assistant Director Ivan J. Arvelo of Homeland Security Investigations (HSI) Global Trade Investigations. “HSI is committed to working alongside CBP and partners to stop those who engage in fraud to circumvent U.S. trade laws.”

The complaint seeks the recovery of over $7 million in import duties and over $15 million in civil penalties.

HSI Newark led the investigation with CBP Trade Regulatory Audit Newark, CBP Associate Chief Counsel New York, CBP Consumer Products and Mass Merchandising (CPMM) Center of Excellence and Expertise. CBP and HSI are the agencies responsible for enforcing U.S. laws related to the importation of merchandise into the United States, including the collection of duties and assessment of penalties.

Trial Counsel Daniel Hoffman of the Civil Division’s Commercial Litigation Branch, National Courts Section, is handling the case.

The case is filed in the Court of International Trade and captioned United States v. Lawrence Bivona No. 24-00196.

To combat trade fraud, including avoidance of import duties, the Justice Department created a Trade Fraud Task Force. The Task Force partners with CBP and other law enforcement agencies to ensure compliance with U.S. trade laws.

The claims in the complaint are allegations only. There has been no determination of liability. 

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Security News: United States Files Suit for Unpaid Duties and Penalties for Alleged Failure to Pay Duties on Imported Chinese Bedroom Furniture

Source: United States Department of Justice 2

The United States has filed a civil lawsuit against Lawrence Bivona, who was the President of LaJobi Inc., a Delaware corporation that imported Chinese-manufactured children’s bedroom furniture into the United States. The lawsuit alleges that Bivona made false statements to customs officials and, as a result, avoided paying antidumping duties owed on the imported furniture.

At the time merchandise is entered into the United States, the importer is responsible for providing all information necessary to enable Customs and Border Protection (CBP) to assess the applicable duties owed on the goods, including any antidumping duties applicable to the merchandise. Antidumping duties are trade remedies that help protect domestic industries from unfair trade practices by foreign businesses and countries, such as government subsidies or below market sales.

The United States’ complaint contends that Bivona caused LaJobi to misrepresent the identity of the manufacturers of the children’s furniture imported from China. In particular, the United States alleges that Bivona falsely represented that the furniture was manufactured by Chinese entities subject to duty rates of approximately 7% or less, and failed to disclose that the furniture was actually manufactured by entities subject to duty rates of 216%.

“Anti-dumping duties play an important role in countering illegal foreign trade practices and protecting U.S. manufacturers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to pursue those who seek to gain an unfair advantage by violating our trade laws.”

“These civil penalties support the seriousness of CBP’s trade mission and protect the U.S. economy, while maintaining fair trade and preserving American jobs from predatory practices,” said Executive Director Susan Thomas of CBP’s Cargo and Conveyance Security, Office of Field Operations. “CBP’s antidumping and countervailing duties enforcement aims to mitigate harm by anti-competitive behavior and supports a level playing field for U.S. companies injured by unfair trade practices.”

“We take very seriously our role in protecting the U.S. economy from illegal and predatory trade practices,” said Assistant Director Ivan J. Arvelo of Homeland Security Investigations (HSI) Global Trade Investigations. “HSI is committed to working alongside CBP and partners to stop those who engage in fraud to circumvent U.S. trade laws.”

The complaint seeks the recovery of over $7 million in import duties and over $15 million in civil penalties.

HSI Newark led the investigation with CBP Trade Regulatory Audit Newark, CBP Associate Chief Counsel New York, CBP Consumer Products and Mass Merchandising (CPMM) Center of Excellence and Expertise. CBP and HSI are the agencies responsible for enforcing U.S. laws related to the importation of merchandise into the United States, including the collection of duties and assessment of penalties.

Trial Counsel Daniel Hoffman of the Civil Division’s Commercial Litigation Branch, National Courts Section, is handling the case.

The case is filed in the Court of International Trade and captioned United States v. Lawrence Bivona No. 24-00196.

To combat trade fraud, including avoidance of import duties, the Justice Department created a Trade Fraud Task Force. The Task Force partners with CBP and other law enforcement agencies to ensure compliance with U.S. trade laws.

The claims in the complaint are allegations only. There has been no determination of liability. 

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Defense News: The Department of the Navy is Establishing a Naval Strategic Studies Group (NSSG) Program

Source: United States Navy

The Department of the Navy is establishing a Naval Strategic Studies Group (NSSG) program in January administered by the DON Office of Strategic Assessment (OSA).

The NSSG will be modeled after the Strategic Studies Group created during the Cold War, which had a twofold mission to train future flag officers in strategic thinking and to conduct research on some of the DON’s most vexing strategic challenges.

The first cohort will include uniformed and civilian members from the Navy and Marine Corps. These plank-owners will conduct a capstone research project that advances Secretary of the Navy Carlos Del Toro’s strategic maritime statecraft initiative.

“I expect my seasoned, mid-grade officers to be brilliant on naval tactics and operations by the time they report for graduate education,” Del Toro said. “I need future flag and general officers who will think strategically about how to lead naval forces in an increasingly contested maritime domain and amidst intense economic, technological and military competition.”

The education in strategic studies the NSSG members will receive supports DON’s focus on reinvigorating the strategic workforce, under the Secretary’s enduring priority of building a culture of warfighting excellence.

Members’ research – focused on broad strategic challenges, rather than narrower problems already addressed by fleet experimentation on specific tactics or technologies – will support DON’s aim of strengthening maritime dominance.

“The Department of the Navy meets our nation’s maritime needs, both today and into the future. As the Office of Strategic Assessment builds a net assessment capability for the DON to understand the complex challenges we face, the Naval Strategic Studies Group will bring together a cohort of rising leaders who will address these challenges and build the strategic leadership skills to guide our Navy and Marine Corps in a dynamic and shifting global environment,” OSA Director Dr. Cara LaPointe said.

The chief of naval operations created the previous SSG in 1981 to tackle key strategic challenges related to the Cold War. Over time, the SSG’s focus evolved to reflect the needs of the Navy until 2016, when it was sundowned.

As the Department of the Navy returns to an era of competition, stakeholders have agreed on the need to amplify strategic leader education as the United States faces an increasingly complex web of threats that includes China, Russia, Iran and North Korea. In 2023 Secretary Del Toro released a Naval Education Strategy to guide investments to modernize naval schools and professional military education. The NSSG will focus students’ strategic leadership studies on DON’s most pressing strategic challenges for greater effect.

“Today we face a comprehensive maritime power in the Indo-Pacific, Russian aggression in Ukraine, and Houthi attacks in the Red Sea – all of which will shape our security environment for several decades,” Del Toro said. “A revitalized, Naval SSG will help the Department of the Navy engage with and look ahead of these trends with sufficient access, resources, and guidance from leadership.”

The first cohort will also tackle questions that will help shape the enduring NSSG program, including working with the Naval University System to deliver a world-class curriculum, and will be located in Washington, D.C.

Lt. Gen. Benjamin Watson, the commanding general of the Marine Corps Training and Education Command, said recent conflicts have reinforced the importance of having Marine Corps leaders at all levels who can outthink the enemy.

“Domains like information and cyber, along with the rise of non-state actors, don’t fit neatly into old frameworks. Our current operating environment demands nothing less than a renaissance in strategic thinking,” said Watson. “To stay ahead of our adversaries, we need to keep evolving—updating our training, sharpening our minds, and learning – not just observing – the lessons of contemporary conflict. The fight isn’t just on the battlefield anymore, and we need every Marine to possess the training, education, and intellectual agility to adapt and overcome.”

Vice Adm. Daniel Dwyer, Deputy Chief of Naval Operations for Operations, Plans, Strategy and Warfighting Development, agreed the Navy needs Sailors and civilians “with superb education and training, who are able to think, act and operate differently to ensure we can defeat our adversaries.”
“The establishment of the NSSG will enhance our culture of warfighting excellence and strengthen our maritime dominance by developing strategically minded warfighters who will be the future senior leaders of the service and will lead our Navy through uncertain times,” said Dwyer.

Del Toro established the Office of Strategic Assessment in October 2023 and tasked the office to reconstitute the strategic studies program to help rebuild the naval strategist community.