Category: US Department of Justice

Source: United States Department of Justice Criminal Division

A total of 17 people were arrested this week in connection with firearms and drug crimes as part of the Justice Department’s Houston Violent Crime Initiative.

Of the 17 defendants arrested this week, all have made initial appearances, and detention hearings are set for Sept. 3 and 4 before U.S. Magistrate Judges Christina Bryan and Yvonne Ho, respectively. Three additional defendants were already in custody on related charges and are expected to make initial appearances before a U.S. magistrate judge in the near future.

According to court documents, between July 31 and Aug. 22, a federal grand jury returned six separate, but related, indictments charging 16 people with crimes related to drug distribution. Two defendants were indicted for illegal possession of a machine gun. One defendant faces a charge of maintaining drug premises.

The charges allege conduct involving over 30 firearms, over 150 grams of methamphetamine, and more than 15 kilograms of cocaine, collectively. In connection with the arrests, law enforcement executed search warrants that resulted in the seizure of 10 firearms, $26,000 in cash, as well as cocaine and crack cocaine.

Sixteen of the defendants are charged with conspiracy to distribute controlled substances as well as multiple substantive counts of possession with intent to distribute a controlled substance. If convicted, they face a maximum penalty of up to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Eight of the defendants are charged with being a felon in possession of a firearm and/or possession of a firearm in furtherance of a drug trafficking crime. If convicted, they face a maximum penalty of 15 years in prison for the felon in possession of a firearm offense and a mandatory minimum penalty of five years in prison and a maximum penalty of life in prison for the possession of a firearm in furtherance of a drug trafficking crime offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas; Special Agent in Charge Douglas Williams of the FBI Houston Field Office; and Chief J. Noe Diaz of the Houston Police Department made the announcement.

The FBI, Houston Police Department, and Texas Department of Public Safety conducted the investigation with assistance from the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, U.S. Marshals Service and Pearland, Texas, Police Department. The investigation was also assisted by the Texas Department of Criminal Justice’s Office of Inspector General and state and local law enforcement agencies in Texas, Virginia, Ohio, and Kentucky.

Trial Attorney Amy L. Schwartz, George Meggali, and Shriram Harid of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Anh-Khoa Tran for the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney John Ganz for the Southern District of Texas and Trial Attorney Adam Tisdall of the Criminal Division’s Fraud Section also provided assistance.

These indictments represent the latest of 23 indictments charging 77 defendants as part of the Criminal Division’s Houston Violent Crime Initiative, first announced in September 2022.

This joint effort by the Justice Department’s Criminal Division, U.S. Attorney’s Office for the Southern District of Texas, and local, state, and federal law enforcement addresses violent crime by employing, where appropriate, federal laws to prosecute gang members and associates in the southwest and southeast areas of Houston. As part of the initiative, the Criminal Division has dedicated attorneys and other resources to prosecuting violent offenders and assisting intervention, prevention, and reentry efforts to address the root causes of violent crime, such as narcotics trafficking. The Department’s Office of Justice Programs provides some of the funding related to this effort.

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

Source: United States Department of Justice

The U.S. District Court for the Southern District of Ohio issued a permanent injunction today against an Ohio tax return preparer.

Emmanuel Antwi and his Cincinnati businesses — Manny Travel Agency & Business Services Inc. and Manny Financial, Insurance & Accounting Firm LLC — consented to the injunction, which permanently bars them from preparing federal tax returns for others. The United States’ claim for an order demanding Antwi turnover ill-gotten gains he received in the form of tax preparation fees remains pending.

According to the civil complaint, since at least 2020, Antwi filed hundreds of tax returns each filing season with at least 95% of the returns he prepared annually claiming a refund. Allegedly, Antwi knowingly took unreasonable or incorrect positions on returns he prepared that resulted in understatements of the tax his customers owed and overstatements of the refunds to which they were entitled to receive. In particular, the complaint alleges that Antwi prepared returns that claimed deductions for purported business losses or employee business expenses that he knew were false. The complaint also alleges that Antwi prepared returns where he knowingly reported the wrong filing status.

As a result of the court’s order, Antwi must send notice of the injunction to each person for whom he or his businesses prepared federal tax returns, amended tax returns or claims for refund between Jan. 1, 2019, to the present. Additionally, the order provides that Antwi must post a copy of the permanent injunction both on websites that he and his businesses maintain and at physical locations where any type of business is conducted.

Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.

Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.

In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

Source: United States Department of Justice Criminal Division

An Arizona man pleaded guilty yesterday to wire fraud and filing a false refund claim with the IRS.

According to court documents and statements made in court, in 2020 and 2021, Roy L. Layne submitted false applications on behalf of several bogus businesses to the U.S. Small Business Administration (SBA) for loans from the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, two federal programs created to provide financial assistance to Americans suffering economic harm as a result of the COVID-19 pandemic. In those applications, Layne claimed that the businesses had dozens of employees and earned hundreds of thousands in gross receipts. To support his false claims and to create the appearance of genuine business activity, Layne created false business and employment tax forms that he filed with the IRS and submitted to the SBA. In total, Layne requested and received over $300,000 in loans to which he was not entitled. 

In addition, in 2022, Layne filed false returns with the IRS that sought nearly $7.5 million in refunds, of which the IRS paid approximately $550,000. 

Layne is scheduled to be sentenced on Feb. 3, 2025. He faces a maximum penalty of 30 years in prison for each wire fraud charge and five years for the false claim charge. 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 Gary M. Restaino for the District of Arizona made the announcement.

IRS Criminal Investigations and the FBI are investigating the case.

Trial Attorney Matthew R. Hoffman of the Justice Department’s Tax Division and Assistant U.S. Attorney Mary Sue Feldmeier for the District of Arizona are prosecuting the case.

Source: United States Department of Justice Criminal Division

The U.S. District Court for the Southern District of Florida issued a permanent injunction today against Miami tax return preparer Richard Louis, which bars him from preparing federal income tax returns, working for or having any ownership stake in any tax preparation business, assisting others (including family members) prepare tax returns or set up business as a preparer and transferring or assigning customer lists to any other person or entity. The court also ordered Louis to disgorge $390,000 in ill-gotten gains he received from his return preparation business. Louis agreed to both the injunction and ordered disgorgement.

In June, the Court enjoined seven independent contractors who worked with Louis — Harold Bornelous, Romeo Davis, Teddy Davis, Joseph Garrett, Demetrius Knowles, Daniel Oku and Marlyne Wah — from preparing returns for others, but allowed the seven defendants to apply for reinstatement as return preparers after two years if they successfully complete the IRS’ Annual Filing Season Program. The independent contractors agreed to the injunctions entered against them.

The complaint alleged that Louis and the independent contractors prepared returns for customers that claimed various false or fabricated deductions and credits, including fabricated residential energy credits, false and exaggerated itemized deductions and fictitious and inflated business expenses. According to the complaint, Louis marketed himself as Taxman and he, acting in concert with the seven independent contractors, prepared thousands of tax returns for customers over the past ten years.

Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.

Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.

In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

Source: United States Department of Justice 2

An Arizona man pleaded guilty yesterday to wire fraud and filing a false refund claim with the IRS.

According to court documents and statements made in court, in 2020 and 2021, Roy L. Layne submitted false applications on behalf of several bogus businesses to the U.S. Small Business Administration (SBA) for loans from the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, two federal programs created to provide financial assistance to Americans suffering economic harm as a result of the COVID-19 pandemic. In those applications, Layne claimed that the businesses had dozens of employees and earned hundreds of thousands in gross receipts. To support his false claims and to create the appearance of genuine business activity, Layne created false business and employment tax forms that he filed with the IRS and submitted to the SBA. In total, Layne requested and received over $300,000 in loans to which he was not entitled. 

In addition, in 2022, Layne filed false returns with the IRS that sought nearly $7.5 million in refunds, of which the IRS paid approximately $550,000. 

Layne is scheduled to be sentenced on Feb. 3, 2025. He faces a maximum penalty of 30 years in prison for each wire fraud charge and five years for the false claim charge. 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 Gary M. Restaino for the District of Arizona made the announcement.

IRS Criminal Investigations and the FBI are investigating the case.

Trial Attorney Matthew R. Hoffman of the Justice Department’s Tax Division and Assistant U.S. Attorney Mary Sue Feldmeier for the District of Arizona are prosecuting the case.