Archive

September 21, 2023

The former CFO of a Russian natural gas company has been sentenced to 7 years in prison and ordered to pay $4 million in restitution and a $350,000 fine for failing to file a Report of Foreign Bank and Financial Accounts (FBAR), making a false statement to the IRS, and failing to pay taxes on millions of dollars of income over a 10 year period.  As the CFO of Novatek, Mark Anthony Gyetvay opened two different bank accounts in Switzerland, which he put under the name of his then-wife, and in which he stored at one point up to $93 million.  Despite knowing better as a CPA and despite receiving recommendations to do so from his accountant, Gyetvay then failed to file FBARs or personal tax returns.  DOJ

August 10, 2023

Redman Services Inc. and owner Jerry Lee Redman pleaded guilty to underreporting the business’s gross receipts on its corporate income tax returns and underreported his income on his personal income tax return, for at least 2015 through 2018. Redman caused customers to write checks to him personally, rather than to RSI, but did not include the checks in RSI’s gross receipts. RSI’s funds were withdrawn to cover personal expenses but weren’t recorded as income on his personal income tax return. Redman faces a maximum of 5 years of imprisonment if convicted. DOJ

June 7, 2023

Anthony Merritt and Andrew De Moya have sentencing dates in October 2023 for bribing a former employee of the D.C. Office of Tax and Revenue to fraudulently remove millions in tax liabilities of businesses owned by De Moya, Arman Amirshahi, Charles Zhou, and others. Merritt acted as a middleman to facilitate the bribes and took a cut of the bribe payments as well. USAO DC

April 27, 2023

Adela Cruz, of Uvalde County, TX, will spend 27 months in prison and will pay $129,239 in restitution for willfully assisting clients in the preparation and filing of their IRS tax returns. Cruz inflated her clients’ refunds by claiming false education credits, dependents, and business profits or losses, and concealed her involvement by using fake taxpayer emails on the filings. DOJ

April 26, 2023

Brian Kolfage and Andrew Badolato will spend 51 months and 36 months in prison, respectively, for their participation in the “We Build The Wall” fundraising scheme. Kolfage, Badolato, and others raised over $25 million in donations from folks bound by their passion for walls and hatred of their fellow humans. Kolfage and Badolato lined their pockets with the funds, despite assuring the public that they wouldn’t take any of the funds for their personal use. Both pled guilty to one count of conspiracy to commit wire fraud in the Southern District of New York, and Kolfage pled guilty to tax and wire fraud charges in the Northern District of Florida, as well. USAO SDNY, USAO NDFL

February 17, 2023

Two more defendants in a massive fraud scheme against the IRS and Paycheck Protection Program (PPP) have been sentenced to roughly 3 years in prison each.  Using his California-based tax preparation business, Mana Tax Services, Thanh Rudin and co-conspirator Seir Havana submitted false income tax returns for at least nine professional athletes, causing $19 million in losses to the IRS.  Rudin and Havana then submitted false applications for PPP loans on behalf of small businesses, shell companies, and other business entities, causing millions more in losses to the PPP.  In October 2022, Rudin’s brother, Quin Rudin, was sentenced to 10 years for his role in the scheme.  USAO EDVA

November 21, 2022

Todd and Julie Chrisley, married television personalities and newly-convicted fraudsters, will spend 12 and 7 years in federal prison, respectively, for conspiracy to commit bank fraud, bank fraud, wire fraud, and conspiracy to commit tax evasion. The Chrisleys defrauded Atlanta-area community banks to obtain more than $36 million in personal loans by submitting false banking and personal financial statements. After funding their lavish, undeserved lifestyle with the multi-million-dollar loans, Todd Chrisley filed bankruptcy, walking away from over $20 million in loans. Both before and during the trial, the Chrisleys attempted to obstruct justice, including by submitting a fraudulent document in response to a grand jury subpoena. In addition to serving time in prison, the Chrisleys will be required to pay restitution in an amount to be determined later. USAO NDGA

October 17, 2022

A father and son, Mehdi and Saaed Moslem, have been sentenced to 3.3 years and 8 years in prison for concealing income from their lenders and the IRS, and evading taxes on their New York-based car dealership, Exclusive Motor Sports, and other businesses.  Along with the prison time, father Mehdi has been ordered to pay restitution of over $1 million and a $100,000 fine, and son Saaed has been ordered to pay restitution of nearly $2 million and a $200,000 fine.  USAO SDNY

October 5, 2022

Quin Ngoc Rudin has been sentenced to 10 years in prison after causing more than $62 million in losses to the IRS and Paycheck Protection Program (PPP) while on supervised release for another fraud scheme.  Through his California-based tax preparation business, Mana Tax Services, Rudin and his brother Thanh had filed a series of false PPP loan applications, with supporting false income tax returns, on behalf of professional athletes, small businesses, shell companies, and other business entities.  His actions caused over $19 million in losses to the IRS, and over $43 million in losses to the PPP.  USAO EDVA

September 22, 2022

The operations manager for Zieson Construction Company has been sentenced to 8 years in prison, ordered to forfeit over $4.6 million in profits, and ordered to pay restitution of over $600,000 to the IRS and over $82,000 to the Missouri Department of Revenue for his role in a massive fraud scheme.  Using an African American service-disabled veteran as the nominal owner of Zieson, Patrick Michael Dingle obtained approximately $335 million in federal construction contracts that were set aside for small businesses owned and operated by individuals fitting the nominal owner’s profile.  In violation of program rules, however, Zieson was actually controlled by Dingle and his co-conspirators.  Dingle also separately admitted to filing fraudulent business tax returns from 2013 to 2016.  USAO WDMO