San Antonio Businessmen Sentenced to Federal Prison for Fraud and Tax Scheme Involving More Than $130 Million in Real-Dollar Losses

n San Antonio this morning, United States Chief District Judge Fred Biery handed down prison sentences to two individuals for their roles in what is believed to be the largest real-dollar loss fraud and tax related case ever prosecuted in the Western District of Texas, announced United States Attorney Robert Pitman, Acting FBI Special Agent in Charge Aaron C. Rouse, and IRS-Criminal Investigation Special Agent in Charge Steve McCollough.
Larry Kimes, the manager of AccounTex Financial Services LLC, was sentenced to 12 years in federal prison, followed by three years of supervised release, and ordered to pay $132 million restitution after pleading guilty to a Klein tax fraud conspiracy charge and a mail fraud conspiracy charge last month.
Charles Pircher, manager of a series of Professional Employer Organizations (PEOs) based in San Antonio, including service professionals, was sentenced to 11 years in federal prison, followed by three years of supervised release, and ordered to pay $132 million restitution after pleading guilty to a Klein tax fraud conspiracy charge and a mail fraud conspiracy charge in November 2013.
“The sentencing of so-called ‘white-collar’ defendants to significant terms of imprisonment such as the judge imposed in this case today should send a strong message to those who concoct fraudulent schemes—schemes that result in real losses to real people,” stated United States Attorney Robert Pitman.
In February, three other individuals who also entered guilty pleas in connection with this fraudulent scheme were sentenced to federal prison by Judge Biery. John Bean, owner of Synergy Personnel, a PEO based in San Antonio, as well as an agent, representative, officer, license holder, and accountant of several San Antonio- and Austin-based PEOs, including Service Professionals; Pat Mire, owner and manager of several San Antonio-based PEOs, including Service Professionals; and Mike Solis, an executive assistant at several San Antonio based PEOs, including Service Professionals, were sentenced to six years, three years, and three years in federal prison, respectively.
By pleading guilty, the defendants admitted that between 2002 and 2008, they participated in a scheme in which they stole more than $130 million from the clients of a series of PEOs operated by the defendants. The PEOs entered into staff leasing agreements with various client companies to manage the companies’ payroll and insurance programs. Kimes, Pircher, and the other co-conspirators diverted to their own use and benefit clients’ monies that should have been paid for payroll taxes and insurance premiums.
“The defendants involved in this, the largest-ever single criminal tax case in San Antonio’s history, knowingly violated our country’s tax laws. They chose to ignore their responsibilities and live a lavish lifestyle on money belonging to their employees and to the U.S. government. IRS special agents will continue to aggressively pursue these types of very serious tax crimes,” stated IRS-Criminal Investigation Special Agent in Charge Steve McCollough.
“Motivated by greed, the defendants perpetrated an extensive fraud scheme designed to steal money from their clients and taxpayers over a number of years. The FBI will continue to work with our partners to identify, investigate, and prosecute others, like the defendants, who seek unjust enrichment by victimizing others,” stated FBI Acting Special Agent in Charge Aaron C. Rouse.
This case was investigated by agents with the Federal Bureau of Investigation and the Internal Revenue Service- Criminal Investigation. Assistant United States Attorney Thomas J. McHugh prosecuted this case on behalf of the government.

Southern Oregon Couple Sentenced to Federal Prison on Fraud and Tax Charges

MEDFORD, OR—Kenneth Johnson, 62, and Diana Arredondo, 56, both of Central Point, Oregon, were sentenced to federal prison based on an embezzlement and tax fraud scheme relating to the operation of a local hotel. Johnson was a partner in the Super 8 Hotel in Central Point, Oregon, since it opened in October 2005. He was in charge of the hotel’s daily operations and reported the hotel’s revenue to his partners in Montana. Johnson hired his girlfriend, Arredondo, as the assistant hotel manager. They operated the hotel from October 2005 through 2011. Johnson engaged in a scheme to defraud his hotel partners by providing them false information regarding the amount of cash collected by the hotel and diverting some of the funds for his and Arredondo’s use. Over a period of time, Johnson diverted a total of about $500,000 and shared some of the tainted funds with Arredondo. In addition, both defendants filed fraudulent income tax returns, failing to report the money embezzled from the hotel. Based on a plea agreement entered into with the government, Johnson pleaded guilty to tax fraud and wire fraud, and Aredondo pleaded guilty to tax fraud.
On Monday, March 31, 2014, Senior U.S. District Judge Owen M. Panner sentenced Johnson to 33 months in federal prison and Arredondo to 10 months in prison. Johnson was ordered to pay $561,101.05 in restitution, and Arredondo was ordered to pay $16,229.00 in restitution.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation and was prosecuted by Assistant U.S. Attorney Judith Harper.

Glenpool Woman Pleads Guilty to Forgery and Tax Fraud

TULSA, OK—A Glenpool woman pleaded guilty on Wednesday to forgery and tax charges, announced Danny C. Williams, Sr., United States Attorney for the Northern District of Oklahoma.
Christi Bender-Anthony, 37, of Glenpool, entered pleas of guilty before U.S. District Judge John E. Dowdell to one count of making, uttering, and possessing a forged security and one count of subscribing a false tax return.
According to court documents, from 2010 to 2012, while employed as an office manager at Process Products & Service Co., Bender-Anthony forged over 100 company checks for her own benefit, resulting in a loss of over $300,000. In addition, Bender-Anthony admitted to the court that she filed false federal tax returns for the years 2010, 2011, and 2012 by knowingly failing to report the income she obtained by means of the checks she forged. Bender-Anthony admitted that she owed over $100,000 in taxes as a result.
Bender-Anthony faces maximum terms of imprisonment of 10 years on the forgery charge and three years on the tax charge, in addition to possible fines. The sentencing date has been scheduled for July 2, 2014.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Kevin C. Leitch prosecuted this case on behalf of the United States of America.

Lehigh Valley Doctor Indicted on Tax Charges

Dennis Erik Fluck Von Kiel, 57, of Macungie and New Tripoli, Pennsylvania, the former medical director of Lehigh County Prison (LCP), was formally indicted today on one count of conspiracy to defraud the United States and five counts of attempting to evade or defeat federal taxes, announced United States Attorney Zane David Memeger. Von Kiel has been held without bail at the Federal Detention Center since his arrest on February 28, 2014, on a federal criminal complaint.
Von Kiel is a doctor of osteopathy whose medical practice included treating inmates at LCP from approximately March 1989 until approximately August 2013. According to the indictment, Von Kiel earned wages of more than $200,000 a year from 2008 through 2012 and paid no federal taxes during any of those years. Von Kiel had represented that he was exempt from federal taxes because he was a minister of a religious institution called the International Academy of Lymphology (and its successors, the International Academy of Life and the Christian Forum Assembly Church) and had taken a “vow of poverty.”
It is further alleged that Von Kiel directed his employer to deposit his bi-weekly paychecks into bank accounts for his “church,” and once the money arrived in those accounts, co-conspirators would transfer nearly the same amount of money into Pennsylvania bank accounts controlled by Von Kiel. Von Kiel then allegedly used that money to pay for all of his family’s day-to-day living expenses and to buy some unusual items, such as a batting cage for his sons, all while purportedly living under his “vow of poverty.”
If convicted, Von Kiel faces a maximum possible sentence of 30 years in prison, up to three years of supervised release, a fine of up to $1.5 million, and a $600 special assessment.
This case was investigated by Internal Revenue Service-Criminal Investigations and the FBI. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

CEO of Free Truth Enterprises Sentenced to Prison for Tax Fraud and Mortgage Loan Fraud

CINCINNATI, OH—Regina Shields, 41, of Cincinnati, Ohio, was sentenced in US. District Court to 12 months and one day in prison and ordered to pay $202,806 in restitution to the Internal Revenue Service and the lender she defrauded in a mortgage fraud scam.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office; and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced the sentence handed down today by Chief U.S. District Court Judge Susan J. Dlott.
Shields pleaded guilty in June 2013 to one count of filing a false income tax return and one count of wire fraud. According to court documents, Shields formed a non-profit corporation called Free Truth Enterprises and has served as the president and CEO since 2000. From 2007 through 2010, Shields filed federal income tax returns with the IRS claiming $61,315 in false claims for income tax refunds.
“The mortgage loan offense involves a brazen scheme whereby she bid for and won a sheriff’s auction for a property that was in foreclosure,” Assistant U.S. Attorney Tim Mangan told the court. “She then purported to pay for the property using a check that had insufficient funds. To make matters worse, the defendant then used this temporary appearance of title to apply for a sizable loan from Quicken Loans in excess of $140,000. She then used the proceeds to purchase a luxury car.”
Shields’ sentence includes restitution to the IRS in the amount of $61,315 and restitution in the amount of $141,491 to Title Source Inc. (related to Quicken Loans).
Stewart commended the cooperative investigation by special agents of IRS-Criminal Investigation and the FBI, Assistant United States Attorney Timothy Mangan who prosecuted the case.

Tampa Tax Fraudster Sentenced to More Than 10 Years in Prison

TAMPA—U.S. District Judge Susan C. Bucklew today sentenced Earl Rojelio Blanchett, Jr. (37, Tampa) to 10 years and four months in federal prison for tax fraud charges, including charges of aggravated identity theft. As part of his sentence, the court also entered a money judgment in the amount of $22,500.
Blanchett pleaded guilty to all 14 counts of the indictment on October 29, 2013.
According to court documents and statements made at the sentencing hearing, in June and July 2013, Blanchett sold seven United States Treasury checks, with a face value of over $77,000, at a discounted price to undercover law enforcement agents. These U.S. Treasury checks were issued as a result of tax returns filed in the names individuals who were victims of identity theft. The victims either did not authorize the filing of those returns, the issuance and cashing of the resulting U.S. Treasury checks and/or confirmed that the U.S. Treasury checks were fraudulently and falsely endorsed in their names. Personal identifying information related to some of the stolen identities was found in a search of Blanchett’s residence, where he lived with his girlfriend. Inside the residence, agents also found thousands of other individuals’ personal identifying information in computers, ledgers, and notebooks, along with notes about the filing of tax returns, debit cards, passwords, and usernames. The information totaled over $7 million, with nearly $3 million confirmed by the IRS.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, Hillsborough County Sheriff’s Office, and Tampa Police Department. It is being prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.

Rochester Man Sentenced in Large-Scale Tax Refund Scheme

ROCHESTER, NY—U.S. Attorney William J. Hochul, Jr. announced today that Juan Marie Delvalle, 26, of Rochester, New York, who was convicted of conspiracy to commit tax fraud in connection with a large nationwide tax refund scheme, was sentenced by U.S. District Court Judge David G. Larimer to 12 months in prison and ordered to pay restitution of $1,644,202 to the Internal Revenue Service.
Assistant U.S. Attorney Richard A. Resnick, who handled the case, stated that from February 1, 2011 to October 31, 2011, Delvalle was involved in a scheme to obtain income tax refunds by the filing of fraudulent federal income tax returns with the Internal Revenue Service. Specifically, stolen identities were utilized to file the fraudulent federal income tax returns, and the wages and related tax withholdings reported on the federal income tax returns were fabricated in order to obtain the refunds. Most of the returns were filed in the names and Social Security numbers of individuals residing in Puerto Rico without their knowledge. Refund checks issued as a result of the fraudulent returns were sent to various addresses in Rochester and other locations in the country.
Approximately 600 federal returns with Rochester-area addresses were filed by a company in Bronx, New York. These 600 tax returns claimed tax refunds totaling $3,555,302, of which $1,644,202 was paid out by the IRS. The refund checks were sent by the IRS to various locations in the Rochester area. Delvalle participated in the scheme by retrieving many of the refund checks that were sent to Rochester and forwarding the money to individuals in the New York City area who were responsible for filing the false tax returns. The defendant was paid a fee for his participation in the scheme.
The sentencing is the culmination of a joint investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, and the Internal Revenue Service-Criminal Investigations, under the direction of Toni M. Weirauch, Special Agent in Charge.

Second Defendant Pleads Guilty in Identity Theft Tax Refund Fraud Scheme

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida; José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and Daniel C. Alexander, Chief, Boca Raton Police Department, announce that defendant Brandon James, of Miami, pled guilty today for his participation in a stolen identity tax refund scheme. Sentencing is scheduled for March 26, 2014, at 9:00 a.m. before Senior U.S. District Judge Daniel T.K. Hurley.
Specifically, James pled guilty to one count of conspiracy to steal money of the United States, in violation of Title 18, United States Code, Section 641, the conspiracy being a violation of Title 18, United States Code, Section 371; one count of theft of government funds, in violation of Title 18, United States Code, Section 641; and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. At sentencing, the defendant faces a maximum of five years in prison for the conspiracy charge, a maximum of 10 years in prison for the theft of government funds charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
According to court documents, James and co-defendant Laron Lanece Larkin were involved in a scheme to unjustly enrich themselves by obtaining income tax refunds to which they were not entitled. The defendants and their co-conspirators submitted false income tax returns in the names of individuals without their knowledge or consent. To receive the fraudulent refunds, James and a co-conspirator purchased debit cards at a convenience store with stolen identity information, such as names, dates of birth, and Social Security account numbers belonging to real persons. Based upon the false income tax returns submitted, the lRS sent the income tax refunds electronically to the pre-purchased debit cards. The defendant admitted that he cashed-out the money electronically transferred to the debit cards by making point of sale purchases and cash withdrawals from automatic teller machines at various locations within Broward and Palm Beach Counties. The actual loss sustained by the U.S. Treasury in connection with this scheme is in excess of $43,000.
Laron Lanece Larkin, of Miami, was sentenced on October 7, 2013, to 36 months and one day in prison, to be followed by three years of supervised release. Larkin pled guilty to one count of conspiracy to steal monies of the United States, in violation of Title 18, United States Code, Section 641, the conspiracy being a violation of Title 18, United States Code, Section 371; and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
Mr. Ferrer commended the investigative efforts of IRS-CI, FBI, and the Boca Raton Police Department. The case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls.

Former Employee of Allstate Electrical to Serve Eight Months in Prison for Embezzlement and Tax Fraud

OKLAHOMA CITY—Renea I. Windham, of Oklahoma City, was sentenced today to eight months in federal prison for making a forged security and filing a false tax return in connection with her embezzlement of more than $140,000 from a metro electrical contracting business, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Windham is the former bookkeeper at Allstate Electrical Contractors Inc. in Oklahoma City. According to the information filed in the case, Windham made and possessed a forged check from Allstate payable to her for $4,380.08. At the plea hearing on September 11, 2013, Windham admitted that she prepared that check to herself without Allstate’s permission and caused the company’s accounting records to show the check was instead issued to a legitimate electrical company. Windham admitted that she embezzled more than $140,000 from Allstate from 2010 to 2013. The information also alleged that Windham submitted a false federal income tax return for tax year 2012 by failing to report substantial income. At the plea hearing, Windham admitted that she did not claim more than $60,000 of embezzled income from Allstate on her 2012 federal income tax return.
Today, United States District Judge Robin J. Cauthron sentenced Windham to eight months of imprisonment, followed by three years of supervised release. Windham was ordered to pay restitution to Allstate and its insurance company in the amount of $143,057.10. She was also ordered to pay $26,682.00 in restitution to the Internal Revenue Service for federal income tax due from her unreported embezzlement income.
These charges are the result of an investigation conducted by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, and the United States Secret Service. The case was prosecuted by Assistant U.S. Attorney Chris M. Stephens.

Five Defendants Plead Guilty in Statesboro in Tax Fraud and Identity Theft Scheme

STATESBORO, GA—Five federal defendants—Aleceia Lovett, Cierra Johnson, Kandice White, Danielle Clark, and Sirbrina Bangs—pled guilty last week before United States District Court Judge B. Avant Edenfield in Statesboro, Georgia, for their involvement in a stolen identity tax fraud scheme.
Earlier this year, these five defendants, along with 17 others who were also involved in similar schemes, were charged with federal crimes ranging from conspiracy to defraud the IRS to identity theft from medical records. According to evidence presented during hearings in these cases, the participants in these schemes illicitly obtained personal identifiers, such as names, dates of birth, and Social Security numbers, which they then used to prepare and submit fraudulent tax returns in order to unlawfully obtain tax refunds.
United States Attorney Edward J. Tarver said, “These cases demonstrate the continuing commitment of the United States Attorney’s Office to protecting the privacy of medical records and the hard-earned money of honest taxpayers. This investigation is ongoing. Our law enforcement partners will continue to track down these identity thieves and bring them to justice.”
The five defendants who pled guilty last week are among the 24 defendants federally charged this year as participants in stolen identity tax fraud schemes in the Statesboro, Georgia area. The status of each of these 24 defendants’ cases is listed (in alphabetical order) as follows:
Erica Baldwin, 31, of Statesboro, Georgia, was charged in April 2013 and pled guilty on June 25, 2013, to wire fraud conspiracy, aggravated identity theft, and misusing medical records. Her sentencing hearing has not yet been scheduled.
Sirbrina Bangs, 26, of Statesboro, Georgia, was charged in September 2013 and pled guilty on December 5, 2013, to conspiracy to commit theft of public funds. Her sentencing hearing has not yet been scheduled.
Danielle Clark, 26, of Statesboro, Georgia, was charged in September 2013 and pled guilty on December 5, 2013, to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
Tameika Clark, 24, of Statesboro, Georgia, was re-indicted on December 3, 2013, with 26 counts of wire fraud conspiracy, wire fraud, aggravated identity theft, and access device fraud. Her trial date has not yet been scheduled.
Tracy Denson, 44, of Statesboro, Georgia, was charged in April 2013 and pled guilty on July 30, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records. Her sentencing hearing has not yet been scheduled.
Shakita Eason, 30, of Statesboro, Georgia, was charged in April 2013 and pled guilty on June 18, 2013, to wire fraud conspiracy, aggravated identity theft, and misusing medical records. Her sentencing hearing has not yet been scheduled.
Yolanda Edmond, 36, of Statesboro, Georgia, was charged in April 2013; pled guilty on July 11, 2013, to wire fraud conspiracy, aggravated identity theft, and misusing medical records; and was sentenced on October 8, 2013, to 32 months in prison.
Gloria Evans, 44, of Statesboro, Georgia, was charged in April 2013; pled guilty on July 11, 2013, to wire fraud conspiracy and aggravated identity theft; and was sentenced on October 8, 2013 to 39 months in prison.
Dequillia Hill, 43, of Sylvania, Georgia, was charged in September 2013 and pled guilty on November 19, 2013, to conspiracy to commit theft of public funds and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
Cierra Johnson, 22, of Statesboro, Georgia, was charged in September 2013 and pled guilty on December 4, 2013, to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
Aleceia Lovett, 29, of Statesboro, Georgia, was charged in September 2013 and pled guilty on December 4, 2013, to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
Tacarro Morgan, 25, of Sylvania, Georgia, was charged in September 2013 and pled guilty on November 19, 2013, to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
Joshua Mincey, 20, of Statesboro, Georgia, was charged in April 2013 and pled guilty on June 25, 2013, to wire fraud conspiracy, aggravated identity theft, and misusing medical records. His sentencing hearing has not yet been scheduled.
Richard Parker, 60, of Sylvania, Georgia, was charged in September 2013 and pled guilty on November 19, 2013, to conspiracy to commit theft of public funds. His sentencing hearing has not yet been scheduled.
Porsche S. Pinkney, 19, of Augusta, Georgia, was charged in April 2013 and pled guilty on August 21, 2013, to wire fraud conspiracy, aggravated identity theft, and misusing medical records. Her sentencing hearing has not yet been scheduled.
Eula Mae Rodriguez, 47, of Sylvania, Georgia, was charged in September 2013 and pled guilty on November 19, 2013, to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
Dwan Scott, 32, of Statesboro, Georgia, was charged in April 2013 and pled guilty on July 30, 2013, to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
Jenna Scott, 28, of Jacksonville, Florida, was charged in April 2013 and pled guilty on July 30, 2013, to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
Devang Shan, 32, of Sylvania, Georgia, was charged in September 2013 with conspiracy to commit theft of public funds. His guilty plea hearing has not yet been scheduled.
Gregory F. Smith, Jr., 21, of Stone Mountain, Georgia, was charged in April 2013 and pled guilty on August 21, 2013, to wire fraud conspiracy and aggravated identity theft. His sentencing hearing has not yet been scheduled.
Asha K. Spaulding, 37, of Claxton, Georgia, was charged in March 2013 and pled guilty on March 12, 2013, to wire fraud conspiracy, aggravated identity theft, and assisting in the preparation of false tax returns and was sentenced on October 8, 2013, to 154 months in prison.
Tidaesha V. Taylor, 27, of College Park, Georgia, was charged in April 2013 and pled guilty on August 21, 2013, to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
Andrea Webb, 31, of Register, Georgia, was charged in April 2013 and pled guilty on June 5, 2013, to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
Kandice White, 25, of Sylvania, Georgia, was charged in September 2013 and pled guilty on December 4, 2013, to conspiracy to commit theft of public funds and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
The defendants not yet sentenced face a maximum penalty of 20 years in prison for the charges of wire fraud conspiracy and wire fraud, 10 years in prison for the charges of access device fraud and misuse of medical records, five years in prison for the charge of conspiracy to commit theft of public funds, and a two-year mandatory, consecutive prison sentence for aggravated identity theft. Each of these charges also carries a fine of up to $250,000.
FBI Special Agent Marcus Kirkland and IRS-CID Special Agent Gwen Weston are the federal law enforcement officers who have been leading the investigation in these cases, along with the Statesboro Police Department and other state and local agencies. Assistant United States Attorneys David Stewart and Lamont A. Belk are prosecuting the cases. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

Spouse of Former Lackawanna County Guardian Ad Litem Pleads Guilty to Federal Income Tax Fraud Misdemeanor

The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Walter J. Pietralczyk, Jr., age 39, pleaded guilty today to a tax fraud misdemeanor before U.S. Magistrate Judge Thomas M. Blewitt in Scranton.
Pietralczyk is the spouse of Lackawanna County Attorney and former Family Court Guardian Ad Litem Danielle Ross Pietralczyk, both of Jermyn, Pennsylvania.
According to United States Attorney Peter J. Smith, an indictment filed against Ross in February 2013 alleged that the couple’s joint federal tax returns verified by Ross under penalty of perjury failed to report income she received from private paying clients while acting as the guardian ad litem for the Lackawanna County Family Court. The only income Ross reported for 2009 and 2010 was her county compensation reported on 1099 Forms, which she received as an independent contractor hired by Lackawanna County.
The indictment charged that as the sole guardian ad litem for the Lackawanna County Family Court, Ross was paid an annual compensation of $38,000. Pursuant to the contract between Ross and Lackawanna County, Ross was permitted to bill private paying parties above her county compensation at a rate of $50 per hour. Those payments were not reported as income for tax purposes.
The investigation continued beyond the original indictment and ultimately implicated Pietralczyk in the submission of false information to the IRS on tax returns filed by the couple.
Pietralczyk was charged in an information filed by the U.S. Attorney’s Office in November 2013.
Pursuant to the terms of plea agreements with the government, both Ross and Pietralczyk have agreed that the tax loss to the United States as a result of the fraud is more than $30,000 but less than $80,000. The restitution amount that will be imposed upon the couple will be determined by the court as part of the sentences. Pietralczyk’s plea relates to the 2009 tax return.
Ross is scheduled to enter her guilty plea on December 16, 2013, before U.S. Senior District Court Judge A. Richard Caputo. She was dismissed from her position as County Guardian Ad Litem earlier this year.
The prosecutions are the result of a joint investigation by the United States Internal Revenue Service (IRS), the Federal Bureau of Investigation (FBI), and the Lackawanna County District Attorney’s Office. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski, assisted by Assistant U.S. Attorney William Houser.
Criminal informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute for Pietralczyk is one year imprisonment, a term of supervised release following imprisonment, and a fine.
Under the Federal Sentencing Guidelines, the judge is also required to consider and weigh a number of factors, including the nature, circumstances, and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public, and provide for the defendant’s educational, vocational, and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

San Antonio Businessman Pleads Guilty to Role in $133 Million Real Dollar Loss Fraud and Tax Case

In San Antonio this morning, 61-year-old businessman Charles Pircher pleaded guilty to his role in what is believed to be the largest real dollar loss fraud and tax related case ever prosecuted in the Western District of Texas, announced United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez and IRS-Criminal Investigation Special Agent in Charge Steve McCullough.
“This was a wide ranging and complex scheme, whose simple purpose was to steal money from company payroll by diverting tax and insurance payments all for personal enrichment. Pircher cheated clients and the taxpayers for years,” stated United States Attorney Robert Pitman.
Appearing before United States Chief District Judge Fred Biery, Pircher pleaded guilty to a Klein tax fraud conspiracy charge and a mail fraud conspiracy charge. According to the factual basis filed in this case, from 2002 to 2008, Pircher managed a series of professional employer organizations (PEOs) based in San Antonio, including Service Professionals, which entered into staff leasing agreements with various client companies to manage their payroll and insurance programs. By pleading guilty, Pircher admitted that he and other co-conspirators stole more than $133 million directly from their client companies’ programs.
Pircher faces up to 20 years in federal prison on the mail fraud conspiracy charge and up to five years in federal prison on the Kline tax fraud conspiracy charge. Sentencing has yet to be scheduled.
This investigation, conducted by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation, has resulted in guilty pleas by five defendants—Pircher; John D. Walker, II; John Bean; Mike Solis; and Pat Mire. A sixth defendant, San Antonio businessman Larry W. Kimes, is scheduled for jury selection and trial on January 23, 2014. Kimes is charged by federal grand jury indictment with one count of Klein tax fraud conspiracy, two counts of mail fraud conspiracy, one count of money laundering conspiracy, and one substantive count of money laundering.
Assistant United States Attorney Thomas J. McHugh is prosecuting this case on behalf of the government.

Vending Machine Company Executive Admits Tax Fraud Conspiracy, Agrees to Pay Pepsi $1 Million in Restitution

NEWARK, NJ—The former principal of a New Jersey vending company today admitted his role in a scheme that defrauded Pepsi Bottling Group of $2.9 million and agreed to pay restitution of $1 million to the company, the U.S. Attorney Paul J. Fishman announced.
Joseph Belasco, 62, of Cedar Grove, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to a superseding information charging him with conspiring with two others to provide a false 2008 IRS 1099 form for consulting services that were never performed. One of the conspirators, Edwin Glasspool, 53, of Caldwell, previously pleaded guilty to defrauding Pepsi of $2.9 million and having his wife receive his annual share of the defrauded money through checks issued by the vending company.
According to documents filed in the case and statements made in court:
In the spring of 1998, Belasco, along with a business associate, created Impact Cause Related Marketing (Impact Marketing), a subsidiary of Culinary Ventures Vending, a company that placed and stocked vending machines in private and commercial facilities, such as state colleges and entertainment venues. The purpose of Impact Marketing was allegedly to provide Pepsi Bottling Co. with leads for acquiring new customers to purchase its cans, bottles, and fountain products. Impact Marketing and Belasco would receive commissions for as long as the client remained a Pepsi customer. According to its contract, Impact Marketing would also receive quarterly rebates, depending upon the amount of Pepsi product a customer purchased on an annual basis.
Glasspool, a Pepsi employee who developed new customers, assigned those customers to Impact Marketing. He also reassigned existing Pepsi customers to the list of new customers allegedly referred by Impact Marketing, generating additional commissions for leads for Belasco that Belasco had not actually generated himself. Between 1998 and 2008, Impact Marketing received from Pepsi $2.9 million in commissions and rebates as a result of the fraudulent scheme.
Glasspool and his wife, who filed joint tax returns, received as much as $200,000 in unlawful annual income from Belasco and Impact Marketing.
The conspiracy charge to which Belasco pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. In addition to the plea of guilty, Belasco agreed to make a restitution payment of $1 million dollars to PepsiCo. Sentencing is scheduled for February 25, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the investigation leading to today’s guilty plea.
The government is represented by V. Grady O’Malley, Senior Litigation Counsel of the U.S. Attorney's Office Organized Crime/Gangs Unit in Newark.

Adams Produce CEO Sentenced to 16 Months in Prison

BIRMINGHAM—A federal judge late Tuesday sentenced the former CEO of Adams Produce Company to 16 months in prison for fraud against the company, failure to report a felony against the government, and failure to file federal income tax returns, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein, Jr., and IRS-Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
Scott David Grinstead, 45, chief executive officer of the now-defunct Adams Produce company, pleaded guilty to the charges in April. Grinstead agreed, as part of his plea agreement with the government, to pay $450,000 in restitution to the bankruptcy estate of Adams Produce to benefit the company’s employees who lost pay when Adams closed abruptly and filed for bankruptcy in 2012. As part of Grinstead’s sentence, U.S. District Judge Karon O. Bowdre ordered him to perform 20 hours of community service.
“This defendant, while CEO of Adams Produce, allowed officers and employees to continue cheating the government on contracts involving military bases and schools while, at the same time, he continued to steal from the company,” Vance said. “Prison is deserved punishment for his criminal acts, which harmed the government and his company, but we also are pleased that resolution of this case will bring some compensation to the employees who lost their jobs and did not receive their final paychecks from Adams Produce,” she said.
"Financial fraud at this company harmed employees, customers and U.S. taxpayers,” Schwein said. “The FBI remains committed to investigating corporate fraud and seeing its perpetrators brought to justice.”
"Individuals who earn income should accurately report their income to the IRS," Hyman-Pillot said. "The sentence today should reassure Americans that those individuals who willfully and intentionally violate their known legal duty of filing and paying their fair share of taxes will be prosecuted."
Three other officials of Adams Produce—David Andrew Kirkland, Christopher Alan Pfahl, and Stanley Joel Butler, II—have been charged and pleaded guilty, and another employee, Michael John O'Brian, was indicted in August in connection with fraud at the Birmingham-based company that had been a leading distributor of fresh fruits and vegetables across the Southeast for decades. Adams Produce was founded as a family owned business more than 100 years ago. The family sold the company to executives and a private equity firm in 2010.
The federal government, through the Defense Supply Center Philadelphia, was one of Adams’ customers. The supply center contracted with Adams Produce to provide fresh fruits and vegetables to military bases, public schools systems, junior colleges, and universities. Adams Produce entered into contracts with the government worth millions of dollars, according to court records.
Kirkland, O'Brien, Butler, and Pfahl conspired to create false records that reflected a higher purchasing cost for fruits and vegetables from a national distributor than Adams Produce actually paid. The inflated costs were presented to the government, which had agreed to pay a certain amount over Adams cost for produce.
Between August 4, 2011 and December 7, 2011, the Adams' employees and officers conspired to conduct at least 82 transactions with the national distributor that were designed to create false invoices and purchase orders. Through those false invoices submitted to the Defense Supply Center, Adams Produce fraudulently received about $481,000 from the government.
One of the charges Grinstead pleaded guilty to is misprision of a felony for knowing of the fraud that other officers were engaged in and allowing it to continue and end slowly, so as to avoid raising red flags with the government, rather than stopping it immediately and reporting it to authorities.
Grinstead pleaded guilty to wire fraud for wiring hundreds of thousands of dollars from an Adams Produce account to American Express to pay for clothing, jewelry, personal travel for himself and his family, lawn care at his home, and items for a house on Lake Martin.
He pleaded guilty to two counts of failure to file a federal tax return, one for 2009 and one for 2010. According to court records, Grinstead had a gross income of about $748,801 for the 2009 calendar year and willfully failed to file an income tax return with the Internal Revenue Service. In 2010, he received about $1,878,700 in gross income and willfully did not file a return with the IRS.
The FBI and the IRS investigated the case, and Assistant U.S. Attorney George A. Martin, Jr. is prosecuting it.

Former Pittsburgh Police Chief Admits Diverting Office Funds, Failing to File Federal Tax Returns

PITTSBURGH—Former Pittsburgh Police Chief Nathan E. Harper pleaded guilty in federal court to charges of conspiracy and willful failure to file income tax returns, United States Attorney David J. Hickton announced today. Harper, 60, of Pittsburgh, pleaded guilty to five counts before United States District Judge Cathy Bissoon.
“This case is about greed and the theft of taxpayer money for private gain,” stated U.S. Attorney Hickton. “Public officials, especially those who serve in law enforcement, have a responsibility to make governmental decisions in the best interests of the citizens, not themselves.”
FBI Special Agent in Charge Gary Douglas Perdue added, “Investigating public corruption remains one of the FBI’s highest priorities. We will continue to pursue public officials who violate federal law.”
“Each of us is responsible for filing correct and accurate tax returns,” said Special Agent in Charge Akeia Conner. “No public official gets a free pass to ignore the tax laws, and IRS-Criminal Investigation works diligently to ensure that everyone pays their fair share.”
In connection with the guilty plea, the court was advised that Harper was the chief of the city of Pittsburgh Bureau of Police. From 2009 to 2012, he caused at least $70,628.92 in checks and cash received by the Special Events Office of the department to be diverted to two unofficial accounts at the Greater Pittsburgh Police Federal Credit Union. Using Visa debit cards, Harper obtained more than $31,000 in ATM withdrawals and debit purchases, all for his personal benefit. Harper also failed to file federal tax returns for the years 2008 through 2011. The total tax loss for all four years was $22,427.
Judge Bissoon scheduled sentencing for February 25, 2014, at 10 a.m. The law provides for a total sentence of nine years in prison, a fine of $650,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Mr. Harper on bond.
Assistant United States Attorneys Robert S. Cessar and Lee J. Karl are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation conducted the investigation leading to the indictment in this case.

Treasure Valley Residents Convicted of Conspiracy, Obstruction of Justice, Wire and Tax Fraud

BOISE—Elaine Martin, 66, of Meridian, Idaho, the former president and majority stockholder of MarCon Inc., was convicted by a federal jury in Boise today of 22 criminal counts, including four counts of filing false individual and corporate tax returns, two counts of conspiracy to defraud the United States, five counts of wire fraud, five counts of mail fraud, one count of false statement, three counts of interstate transportation of property taken by fraud, one count of conspiracy to obstruct justice, and one count of obstruction of justice, U.S. Attorney Wendy J. Olson and Assistant Attorney General for the Tax Division Kathryn Keneally announced. Martin’s co-defendant, Darrell Swigert, 67, of Boise, a minority shareholder in Marcon, was found guilty of two counts of obstruction of justice and one count of conspiracy to obstruct justice. Sentencing for both defendants has been set for December 9, 2013, before Chief U.S. District Judge B. Lynn Winmill.
“The jury’s verdicts send the strong message that those who seek federal government contracts must deal openly and honestly with the federal government,” said Olson. “I commend the cooperative investigation and prosecution in this case that involved the efforts of several agencies. This office will continue to prioritize and vigorously prosecute those who defraud the federal government and federal taxpayers.”
During the 26-day trial, the jury heard evidence that as early as 2000, Martin submitted false and fraudulent applications to have her construction company, Marcon, admitted and/or remain in two different federally funded programs, the U.S. Small Business Administration (SBA) 8(a) Program and the Department of Transportation Disadvantaged Business Enterprise (DBE) Program. Both programs are designed to help economically and socially disadvantaged businesses compete in the marketplace. To be admitted into the program, the owner/shareholder that qualifies as socially disadvantaged must also demonstrate economic disadvantage, in part by having a personal net worth below a certain statutory cap.
According to evidence presented at trial, Martin took steps to artificially lower her personal net worth, such as acquiring, holding, and transferring assets into the names of nominees in order to appear to be economically disadvantaged. This allowed Martin’s construction firm, Marcon, to qualify for the DBE and SBA 8(a) programs. Martin also caused false and fraudulent tax returns to be filed for herself and Marcon Inc., which did not report all the income received by Martin or the company. The false returns were submitted in support of Marcon’s applications to the SBA 8(a) Program and DBE Programs for Idaho and Utah, along with false personal financial statements. The government presented evidence that Martin omitted, deleted, altered, and miscategorized entries in Marcon’s financial books and records. Martin also concealed her role or relationship in other business entities that dealt with Marcon Inc.
The jury heard evidence that Marcon received more than $2.5 million in government contracts based on the company’s fraudulently obtained SBA 8(a) status and that Marcon received more than $15 million in government contracts based on the company’s fraudulently obtained DBE status in the states of Idaho and Utah.
The government presented evidence that in order to impede an IRS audit of MarCon and criminal investigation into Martin, Martin and Swigert conspired to obstruct justice by fabricating documents and making false statements that sought to conceal the true nature, source, and extent of property belonging to Martin.
The government is seeking $9,237,722.10 in forfeiture from Martin, which represents the proceeds obtained as a result of the criminal conduct.
“The Small Business Administration Office of Inspector General is committed to helping ensure that only eligible disadvantaged small businesses benefit from the SBA’s 8(a) Business Development Program. We are pleased with the jury’s verdict today which sends a strong message to those who lie to obtain preferences for federal contract awards,” said Inspector General Peggy E. Gustafson of the Small Business Administration.
“This verdict should send a clear message: income tax evasion is unacceptable, and those who attempt to commit such fraud will be brought to justice,” said Stephen Boyd, IRS Criminal Investigation Special Agent in Charge for the State of Idaho.
“The Disadvantaged Business Enterprise (DBE) Program is a business assistance program of the U.S. Department of Transportation (DOT), which helps economically and socially disadvantaged small businesses compete in the marketplace. DBE fraud harms the integrity of the program and adversely impacts law-abiding, small business contractors trying to compete on a level playing field,” said William Swallow, regional Special Agent in Charge of the DOT’s Office of Inspector General. “Working with our federal, state, and local law enforcement and prosecutorial colleagues, we will vigorously pursue those who violate the law and expose and shut down fraud schemes that adversely affect public trust and DOT-assisted highway programs.”
The charge of making and subscribing a false return is punishable by up to three years in prison and up to three years of supervised release. The charge of conspiracy is punishable by up to five years in prison and up to three years of supervised release. Wire fraud is punishable by up to 20 years in prison and up to five years of supervised release. The charge of making a false statement is punishable by up to two years in prison and up to one year of supervised release. The charge of mail fraud is punishable by up to 20 years in prison and up to five years of supervised release. Each charge of interstate transportation of property taken by fraud is punishable by up to 10 years in prison and up to three years of supervised release. The charges of conspiracy to obstruct justice and obstruction of justice are each punishable by up to five years in prison and up to three years of supervised release. The aforementioned charges are each punishable by a maximum fine of $250,000, per count.
The case was investigated by Internal Revenue Service-Criminal Investigation, Federal Bureau of Investigation, the Office of Inspector General for the U.S. Small Business Administration, and the Office of Inspector General for the U.S. Department of Transportation.
Today’s announcement is part of an effort by President Obama’s Financial Fraud Enforcement Task Force (FFETF), created in November 2009, to combat financial fraud crimes by waging aggressive, coordinated, and proactive investigations and prosecutions. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, the task force is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

Eleven Defendants Charged with Federal Crimes in Connection with Stolen Identity Tax Fraud Scheme

STATESBORO, GA—Two federal indictments, unsealed today in federal court, have charged 11 defendants with conspiracy to commit theft of public money and access device fraud in connection with fraudulent tax returns. Both of these indictments allege that the defendants illicitly obtained and possessed debit cards and tax refund checks stemming from the preparation and submission of fraudulent tax returns. The initial court appearances were held today at 10:00 a.m. in the federal courthouse in Statesboro, Georgia.
United States Attorney Edward J. Tarver said, “These indictments demonstrate the continued commitment of the United States Attorney’s Office to protecting the hard-earned money of honest taxpayers. Our law enforcement partners will continue to investigate and prosecute those who seek to profit from the preparation and filing of fraudulent tax returns.”
IRS-Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot said, "Today’s announcement exemplifies the intense focus on the rigorous pursuit of identity theft by IRS and our law enforcement partners. IRS-Criminal Investigation has made investigating refund fraud and identity theft a top priority, and we will continue to vigorously pursue those who undermine the integrity of the U.S. tax system."
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, "The FBI will continue to work with our local, state, and other federal law enforcement partners to aggressively pursue criminals who defraud the U.S. government by stealing the identities of unwitting and innocent victims.”
Joshua Waites, Chief, Office of Special Investigations, Georgia Department of Revenue, stated, “Today’s arrests show how serious the state of Georgia is at finding and arresting individuals committing identity theft fraud. The Georgia Department of Revenue will continue to work with our federal and local law enforcement officials to combat this growing trend.”
Statesboro Director of Public Safety Wendell Turner said, “The Statesboro Police Department has been working with our local and federal counterparts to apprehend the persons responsible for defrauding the government and individuals through a variety of criminal schemes. We are very proud of these partnerships and the results they yield for our citizens. This investigation is just another example of everyone working together, sharing resources, information, and expertise for the common good of our community.”
Mr. Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
FBI Special Agent Marcus Kirkland, IRS Special Agent Gwen Weston and SPD Sgt. James Winskey, assisted by their agencies’ colleagues, conducted the investigation that led to the indictments. The United States Marshals Service, Georgia State Patrol, Georgia State Probation Office, Sylvania Police Department, and the sheriff’s offices for Bulloch and Screven Counties assisted in the arrests of numerous defendants.
Assistant United States Attorneys David Stewart and Lamont A. Belk are prosecuting the cases on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
List of 11 Federal Defendants
RICHARD PARKER, 60, of Sylvania, Georgia
EULA MAE RODRIGUEZ, 47, of Sylvania, Georgia
TACARRO MORGAN, 25, of Sylvania, Georgia
SIRBRINA BANGS, 26, of Statesboro, Georgia
DEQUILLIA HILL, 43, of Sylvania, Georgia
KANDICE WHITE, 25, of Sylvania, Georgia
ALECEIA LOVETT, 29, of Statesboro, Georgia
CIERRA JOHNSON, 22, of Statesboro, Georgia
DANIELLE CLARK, 26, of Statesboro, Georgia
DEVANG SHAH, 32, of Sylvania, Georgia
TAMEIKA CLARK, 24, of Statesboro, Georgia

Hogsett Announces Sentencing of Central Indiana Man on Bank, Wire Fraud Charges

INDIANAPOLIS—Joseph H. Hogsett, the United States Attorney, announced today that Todd Van Natta, of Seymour and Columbus, was sentenced this morning by U.S. District Judge William T. Lawrence to 60 months in federal prison after pleading guilty to 10 counts of bank fraud, three counts of wire fraud, and two counts of tax fraud. Van Natta was also ordered to pay $6,977,470 in restitution to his victims. Today’s hearing follows Van Natta’s 2012 indictment for operating a scheme that defrauded local Indiana banks of more than $10 million over two years.
“This criminal scheme was fueled by greed and left behind a trail of victims across the Hoosier State,” Hogsett said. “As Mr. Van Natta learned today, embracing such a culture of corruption doesn’t pay. You will be caught, and you will be brought to justice.”
Van Natta was the president and manager of the Seymour-based Van Natta Asset Management LLC, along with a variety of related companies. The company was involved in commercial and residential real estate projects, as well as the aviation business.
Beginning in March 2007 and continuing until 2009, Van Natta devised a scheme to defraud financial institutions, obtaining large sums of money under false pretenses. Van Natta accomplished this by preparing and submitting numerous false documents to banks throughout central and southern Indiana, including local financial institutions headquartered in Bartholomew, Decatur, Washington, Morgan, and Monroe Counties.
By using these false documents, including fraudulently created tax returns that hid the true income and financial affairs of Van Natta’s family members, the defendant was able to secure a number of substantial loans from the financial institutions for a variety of purposes. These loans included $3.8 million for a property in Evansville, $2.1 million for multiple properties in Seymour, and $3.1 million for a variety of properties in Fort Wayne. Loans were also taken out to purchase a 1970 Cessna Aircraft ($100,000) and a 2007 Fantasy Yacht ($550,000).
In addition, Van Natta defrauded a resident of Utah by falsely claiming that he was the owner of an aircraft that the defendant had listed for sale. Van Natta then accepted thousands of dollars from the individual, ostensibly for the purchase and upgrade of the aircraft. At no time did Van Natta actually own the aircraft in question, nor was it ever delivered to the individual as per the purchase agreement.
According to Senior Litigation Counsel Steven D. DeBrota and Assistant U.S. Attorney MaryAnn Mindrum, who prosecuted the case for the government, Van Natta was ordered to pay full restitution to his victims and must serve five years of federally supervised release at the end of his prison term. The federal government has filed its intention to seize Van Natta’s assets that were attained through criminal activity. This prosecution was the result of a collaborative investigation involving the Federal Bureau of Investigation and the Internal Revenue Service.

Former Employee of Allstate Electrical Pleads Guilty to Embezzlement and Tax Fraud

OKLAHOMA CITY—Renea I. Windham, of Oklahoma City, pled guilty in federal court today to making a forged security and filing a false tax return in connection with her embezzlement of more than $140,000 from a metro electrical contracting business, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Windham is the former bookkeeper at Allstate Electrical Contractors Inc. in Oklahoma City. According to the information filed in the case, Windham made and possessed a forged check from Allstate payable to her for $4,380.08. At today’s plea hearing, Windham admitted that she prepared that check to herself without Allstate’s permission and caused the company’s accounting records to show the check was instead issued to a legitimate electrical company. Windham also admitted that she embezzled more than $140,000 from Allstate from 2010 to 2013. The information also alleged that Windham submitted a false federal income tax return for tax year 2012 by failing to report substantial income. At today’s plea hearing, Windham admitted that she did not claim more than $60,000 of embezzled income from Allstate on her 2012 federal income tax return.
At sentencing, Windham faces up to 10 years in federal prison and a fine up to $250,000 on the forged security charge and up to three years in federal prison and a fine up to $250,000 on the tax charge. She agreed in her plea agreement to pay restitution to Allstate in the amount of $143,057.10. She also agreed to pay restitution to the Internal Revenue Service in the amount of her federal income tax due, to be determined by the court. United States District Judge Robin J. Cauthron will sentence Windham on December 11, 2013.
These charges are the result of an investigation conducted by the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and the United States Secret Service. The case is being prosecuted by Assistant U.S. Attorney Chris M. Stephens.