Tax Fraud

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

September 12, 2022

Two cigarette companies, Canada-based Grand River Enterprises Six Nations, Ltd., and its wholesaler, New York-based Native Wholesale Supply Company, Inc., have agreed to pay $50 million and follow corrective measures to resolve charges of evading New York state taxes.  According to the AG, Grand River—which manufactures Couture, Opal, and Seneca cigarettes—knew that its distributor, Native Wholesale, was not licensed to distribute or sell cigarettes in the state, and thus their cigarettes would not be taxed or stamped in accordance with state law, making their prices artificially lower and more accessible to young consumers.  NY AG

August 10, 2022

Melissa Lynne Horner, co-owner of H & H Earthworks, Inc., will spend 30 months in prison and pay over $2.8 million in restitution for failing to pay employee and employer taxes to the IRS, as well as Earthworks’ portion of the FICA taxes. Rather than paying taxes, Horner used the money for her personal gain, spending over $100,000 on motor sport vehicles, $90,000 to a real estate title company, and at least $50,000 on home renovations and $20,000 for a motorhome. USAO MT

August 10, 2022

Thomas Valdez Rodriguez will spend 24 months in prison and will pay over $12.7 million in restitution to the IRS. As owner of Tom-E-Lee Trucking and Tom-E-Lee Industries, Rodriguez failed to withhold employment taxes from his employees. In addition to his failures to meet his businesses’ tax obligations, Rodriguez has not paid personal income taxes since 2011. Rather than paying his taxes, Rodriguez lived extravagantly and enjoyed flying his friends on private jets to Dallas Cowboys games, where Rodriguez was a season ticket holder on the 50-yard line. All told, the harm to the government equated $12,714,214.42, of which Rodriguez paid $1 million immediately prior to his sentencing. USAO WDTX