NEWARK - (AP) - Federal authorities in New Jersey have charged a Michigan woman for her alleged role in what prosecutors say is one of the nation's largest stolen identity refund fraud schemes.
U.S. Attorney Paul Fishman says 35-year-old Rosa Marmol of Grand Rapids was indicted Thursday on charges of conspiracy and theft of government property in the form of $1.2 million in U.S. Treasury checks.
Fishman alleges that Marmol and 13 other defendants were seeking more than $65 million in tax refunds, and the scheme resulted in the losses to the United States of more than $12 million.
More than 8,000 fraudulent U.S. income tax returns were filed, most of them using personal data belonging to Puerto Rican citizens.
Showing posts with label false tax returns. Show all posts
Showing posts with label false tax returns. Show all posts
Tuesday, February 18, 2014
Thursday, January 30, 2014
Coin Dealer Formerly from Hackensack Admits Filing a False Federal Income Tax Return
NEWARK, NJ—A former Hackensack, New Jersey dealer in ancient coins today admitted filing a false federal income tax return for the 2006 tax year, U.S. Attorney Paul J. Fishman announced.
Gantcho Zagorski, 60, pleaded guilty today before U.S. District Judge Esther Salas in Newark federal court to one count of aiding and assisting in the filing of a false tax return.
According to documents filed in this case and statements made in court:
Zagorski owned and operated a business that sold ancient coins to domestic and international customers, primarily on the online auction site eBay, from his residence in Hackensack, New Jersey. Zagorski; his wife; and, at times, his daughter operated the coin-selling business under the names “Diana Coins,” “Paganecoins,” and “Diana Coins LLC.”
Zagorski admitted he provided his tax preparer with false and fraudulent information by substantially understating the amount of gross receipts and sales earned by his business and then caused to be filed with the IRS a false federal income tax return for 2006. Zagorski admitted the 2006 tax return claimed gross receipts and sales of $310,901 when, in fact, the business had generated more than $600,000 in gross receipts and sales for that year.
The tax count to which Zagorski pleaded guilty carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for May 12, 2014.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, Newark Field Office; Department of Homeland Security, Homeland Security Investigations, New York, under the direction of Special Agent in Charge James T. Hayes, Jr.; and the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Maureen Nakly and Leslie Schwartz of the U.S. Attorney’s Office in Newark.
Gantcho Zagorski, 60, pleaded guilty today before U.S. District Judge Esther Salas in Newark federal court to one count of aiding and assisting in the filing of a false tax return.
According to documents filed in this case and statements made in court:
Zagorski owned and operated a business that sold ancient coins to domestic and international customers, primarily on the online auction site eBay, from his residence in Hackensack, New Jersey. Zagorski; his wife; and, at times, his daughter operated the coin-selling business under the names “Diana Coins,” “Paganecoins,” and “Diana Coins LLC.”
Zagorski admitted he provided his tax preparer with false and fraudulent information by substantially understating the amount of gross receipts and sales earned by his business and then caused to be filed with the IRS a false federal income tax return for 2006. Zagorski admitted the 2006 tax return claimed gross receipts and sales of $310,901 when, in fact, the business had generated more than $600,000 in gross receipts and sales for that year.
The tax count to which Zagorski pleaded guilty carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for May 12, 2014.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, Newark Field Office; Department of Homeland Security, Homeland Security Investigations, New York, under the direction of Special Agent in Charge James T. Hayes, Jr.; and the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Maureen Nakly and Leslie Schwartz of the U.S. Attorney’s Office in Newark.
Tuesday, January 21, 2014
Woman Pleads Guilty to Wire Fraud and Filing False Tax Returns
BUFFALO, NY—U.S. Attorney William J. Hochul, Jr. announced today that Linda Rakonczay, 58, of Middleport, New York, pleaded guilty to wire fraud and filing false tax returns before Chief U.S. District Judge William M. Skretny. The charges carry a maximum sentence of 20 years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that the defendant worked as a payroll coordinator for Orleans Community Health in Medina, New York. Beginning in 2001 and continuing through 2012, Rakonczay prepared and submitted reports to the organization’s bank instructing the bank to electronically transfer money from the corporate bank account to her personal bank account. The amount transferred from the organization’s bank account to the defendant’s account totaled $499,563. For tax years 2007 through 2012, Rakonczay failed to report such income and failed to pay federal taxes to the Internal Revenue Service totaling nearly $94,000.
The conviction is the result of an investigation on the part of special agents of Federal Bureau of Investigation under the direction of Special Agent in Charge Brian P. Boetig and the Internal Revenue Service, Criminal Investigations Division, under the direction of Toni M. Weirauch, Special Agent in Charge.
Sentencing is scheduled for May 5, 2014, before Chief Judge Skretny.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that the defendant worked as a payroll coordinator for Orleans Community Health in Medina, New York. Beginning in 2001 and continuing through 2012, Rakonczay prepared and submitted reports to the organization’s bank instructing the bank to electronically transfer money from the corporate bank account to her personal bank account. The amount transferred from the organization’s bank account to the defendant’s account totaled $499,563. For tax years 2007 through 2012, Rakonczay failed to report such income and failed to pay federal taxes to the Internal Revenue Service totaling nearly $94,000.
The conviction is the result of an investigation on the part of special agents of Federal Bureau of Investigation under the direction of Special Agent in Charge Brian P. Boetig and the Internal Revenue Service, Criminal Investigations Division, under the direction of Toni M. Weirauch, Special Agent in Charge.
Sentencing is scheduled for May 5, 2014, before Chief Judge Skretny.
Monday, December 23, 2013
Owner of New Jersey Debit Card Business Admits Filing False Tax Returns
NEWARK, NJ—An Orange County, New York man who owned a New Jersey company admitted today to filing false income tax returns, U.S. Attorney Paul J. Fishman announced.
Richard Jackowitz, 60, of Warwick, New York, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to two counts of an information charging him with filing false tax returns.
According to documents filed in this case and statements made in court:
Jackowitz owned and operated Branded Marketing, a Haskell, New Jersey company that sold debit cards. For the 2007 and 2008 tax years, Jackowitz had unreported income from his company of approximately $105,512 and $359,677, respectively. Jackowitz’s false tax returns caused a loss to the IRS of more than $300,000.
The tax charge to which Jackowitz pleaded is punishable by a maximum potential penalty of three years in prison and a $250,000 fine. As part of his plea agreement, Jackowitz also agreed to pay $319,940 in restitution to the government. Sentencing is scheduled for March 25, 2014.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jenny Kramer of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Richard Jackowitz, 60, of Warwick, New York, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to two counts of an information charging him with filing false tax returns.
According to documents filed in this case and statements made in court:
Jackowitz owned and operated Branded Marketing, a Haskell, New Jersey company that sold debit cards. For the 2007 and 2008 tax years, Jackowitz had unreported income from his company of approximately $105,512 and $359,677, respectively. Jackowitz’s false tax returns caused a loss to the IRS of more than $300,000.
The tax charge to which Jackowitz pleaded is punishable by a maximum potential penalty of three years in prison and a $250,000 fine. As part of his plea agreement, Jackowitz also agreed to pay $319,940 in restitution to the government. Sentencing is scheduled for March 25, 2014.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jenny Kramer of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Wednesday, November 27, 2013
Former Lewiston Attorney Sentenced to Federal Prison for Fraud
BUFFALO, NY—The United States Attorney’s Office announced today that Timothy Toohey, 66, of Lewiston, New York, who was convicted of receiving money stolen from an Indian Tribal Organization and filing a false tax return, was sentenced to 33 months in prison by U.S. District Judge Richard J. Arcara. In addition, the defendant was ordered to pay restitution in the amount of $540,000 to the Seneca Nation of Indians and $62,821 to the Internal Revenue Service.
First Assistant U.S. Attorney James P. Kennedy, Jr., who handled the case, stated that Toohey’s convictions arose as a result of the disbarred attorney’s involvement in an effort to build a golf course in the Town of Lewiston. According to Kennedy, in April of 2002, Old Creek Development (OCD) was formed as a Limited Liability Corporation (LLC) by attorney Michael Dowd. Dowd was partners in OCD with two other individuals who together owned vacant land in the Town of Lewiston, and the primary reason that the LLC was formed was to develop a golf course on that land. While OCD initially sought to enter into an agreement with the Town of Lewiston to develop a municipal golf course, that effort did not succeed. At that point, the defendant decided to become involved by offering to bring together OCD (as seller) and the Seneca Nation of Indians (SNI) (as the purchaser) of the golf course site. To that end, Toohey contacted, inter alia, both Dowd (who was acting on behalf of OCD) and Bergal Mitchell, who was then the Vice Chairman of the Seneca Gaming Corporation (SGC) Board of Directors. The SGC is an entity which is wholly owned by the SNI. On February 19, 2005, the Tribal Council of the SNI passed a resolution related to the purchase of the land in Lewiston for a golf course. That resolution authorized the Seneca Niagara Falls Gaming Corporation (SNFGC), an entity wholly owned by the SGC, to acquire the land for the golf course for a purchase price which was "not to exceed $2.1 million."
In pleading guilty, Toohey admitted that during the course of the negotiations leading up to the sale of the property from OCD to the SNFGC, he and Bergal Mitchell entered into an unlawful agreement whereby each would, unbeknownst to SNI, receive a portion of the sale proceeds received by OCD from SNI. The defendant further admitted that both he and Bergal Mitchell undertook affirmative measures to conceal from members of the SNI Tribal Council, SGC and/or the SNFGC their interest in the transaction, including the fact that they were each personally going to receive a portion the sale proceeds.
According to Kennedy, the investigation revealed that after paying its expenses, OCD, on February 15, 2006, paid a total of roughly $1,400,000 for the six total parcels it obtained from the two property owners and the Town of Lewiston. On that same day, OCD conveyed title to the six parcels it had obtained to the SNFGC in exchange for $2,100,000. Of the sales proceeds received by OCD, Toohey, during 2006, received approximately $202,000, while Bergal Mitchell received approximately $248,000. In addition, Mitchell’s wife Rachel received an additional $90,000. The tax conviction against Toohey resulted from his failure to report the $202,000 he received in the transaction as income on his 2006 tax return.
Immediately prior to sentencing Toohey, Judge Arcara set a date of June 17, 2014, for trial of the pending Indictment against Mitchell for his role in the transaction.
The conviction was the culmination of an investigation on the part of special agents of the Federal Bureau of Investigation, under the direction of Brian P. Boetig, Special Agent in Charge, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Toni M. Weirauch, Special Agent in Charge.
First Assistant U.S. Attorney James P. Kennedy, Jr., who handled the case, stated that Toohey’s convictions arose as a result of the disbarred attorney’s involvement in an effort to build a golf course in the Town of Lewiston. According to Kennedy, in April of 2002, Old Creek Development (OCD) was formed as a Limited Liability Corporation (LLC) by attorney Michael Dowd. Dowd was partners in OCD with two other individuals who together owned vacant land in the Town of Lewiston, and the primary reason that the LLC was formed was to develop a golf course on that land. While OCD initially sought to enter into an agreement with the Town of Lewiston to develop a municipal golf course, that effort did not succeed. At that point, the defendant decided to become involved by offering to bring together OCD (as seller) and the Seneca Nation of Indians (SNI) (as the purchaser) of the golf course site. To that end, Toohey contacted, inter alia, both Dowd (who was acting on behalf of OCD) and Bergal Mitchell, who was then the Vice Chairman of the Seneca Gaming Corporation (SGC) Board of Directors. The SGC is an entity which is wholly owned by the SNI. On February 19, 2005, the Tribal Council of the SNI passed a resolution related to the purchase of the land in Lewiston for a golf course. That resolution authorized the Seneca Niagara Falls Gaming Corporation (SNFGC), an entity wholly owned by the SGC, to acquire the land for the golf course for a purchase price which was "not to exceed $2.1 million."
In pleading guilty, Toohey admitted that during the course of the negotiations leading up to the sale of the property from OCD to the SNFGC, he and Bergal Mitchell entered into an unlawful agreement whereby each would, unbeknownst to SNI, receive a portion of the sale proceeds received by OCD from SNI. The defendant further admitted that both he and Bergal Mitchell undertook affirmative measures to conceal from members of the SNI Tribal Council, SGC and/or the SNFGC their interest in the transaction, including the fact that they were each personally going to receive a portion the sale proceeds.
According to Kennedy, the investigation revealed that after paying its expenses, OCD, on February 15, 2006, paid a total of roughly $1,400,000 for the six total parcels it obtained from the two property owners and the Town of Lewiston. On that same day, OCD conveyed title to the six parcels it had obtained to the SNFGC in exchange for $2,100,000. Of the sales proceeds received by OCD, Toohey, during 2006, received approximately $202,000, while Bergal Mitchell received approximately $248,000. In addition, Mitchell’s wife Rachel received an additional $90,000. The tax conviction against Toohey resulted from his failure to report the $202,000 he received in the transaction as income on his 2006 tax return.
Immediately prior to sentencing Toohey, Judge Arcara set a date of June 17, 2014, for trial of the pending Indictment against Mitchell for his role in the transaction.
The conviction was the culmination of an investigation on the part of special agents of the Federal Bureau of Investigation, under the direction of Brian P. Boetig, Special Agent in Charge, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Toni M. Weirauch, Special Agent in Charge.
Friday, September 13, 2013
Shrewsbury Woman Indicted for Filing False Tax Returns
BOSTON—In an indictment unsealed today, a Shrewsbury woman has been charged with underreporting income from her federal tax returns.
Roberta I. Crudale Blute, 55, was indicted on two counts of filing false tax returns for tax years 2007 and 2008.
The indictment alleges that Blute omitted from tax returns hundreds of thousands of dollars in income that she earned from numerous employers for tax years 2007 and 2008. Specifically, it is alleged Blute knowingly failed to report income she earned from four companies in 2007 and five companies in 2008.
The statutory maximum penalty is three years in prison, one year of supervised release, and a $250,000 fine. Blute is scheduled to have her initial appearance today at 2 p.m. in Worcester.
United States Attorney Carmen M. Ortiz; John G. Collins, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Vincent Lisi, Special Agent in Charge of the FBI’s Boston Field Division; and Susan J. Waddell, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General, Office of Investigations, made the announcement.
This case is being prosecuted by Assistant U.S. Attorneys Amanda P.M. Strachan and Miranda Hooker of Ortiz’s Health Care Fraud Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Roberta I. Crudale Blute, 55, was indicted on two counts of filing false tax returns for tax years 2007 and 2008.
The indictment alleges that Blute omitted from tax returns hundreds of thousands of dollars in income that she earned from numerous employers for tax years 2007 and 2008. Specifically, it is alleged Blute knowingly failed to report income she earned from four companies in 2007 and five companies in 2008.
The statutory maximum penalty is three years in prison, one year of supervised release, and a $250,000 fine. Blute is scheduled to have her initial appearance today at 2 p.m. in Worcester.
United States Attorney Carmen M. Ortiz; John G. Collins, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Vincent Lisi, Special Agent in Charge of the FBI’s Boston Field Division; and Susan J. Waddell, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General, Office of Investigations, made the announcement.
This case is being prosecuted by Assistant U.S. Attorneys Amanda P.M. Strachan and Miranda Hooker of Ortiz’s Health Care Fraud Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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