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Nine Family Members in Alabama Indicted for Tax Fraud and Identity Theft Conspiracy
Barbara Murry, Douglas Murry, Douglas Murry III, Yolanda Moses, Lee Moses, Veronica Temple, Jeffrey Temple, Almetta Johnson and Courtney Johnson were charged in an indictment by a federal grand jury in the Middle District of Alabama on a variety of counts stemming from an alleged identity theft and tax fraud scheme, according to the Justice Department and the Internal Revenue Service (IRS). The 33-count indictment charges all nine with conspiring to defraud the United States and to commit theft of public funds and with theft of public funds. Barbara Murry, Yolanda Moses and Veronica Temple are also charged with aggravated identity theft. The indictment was unsealed last Friday, May 4.
According to the indictment, all of the individuals are related to each other. Barbara Murry owned and operated B&B Weaving Shop, located in Montgomery, Alabama. B&B Weaving Shop was located in the same building as B&B Tax Service. Barbara Murry’s daughter, Yolanda Moses, owned and operated B&B Tax Service. Between 2006 and 2012, Barbara Murry, Yolanda Moses and Veronica Temple allegedly filed false federal income tax returns with stolen identities and had refunds directly deposited into the bank accounts of their family members and others. According to the government, the bank accounts received at least $1.3 million in false tax refunds.
The specific instances of conduct included in the indictment are limited to deposits made in late 2011, and a majority of the deposits are in the amount of $1,400. This seems to be an odd time of the year to receive tax refunds. Further, the indictment alleges that the conspiracy was ongoing since approximately 2006, yet the deposits all take place in 2011. An indictment does not have to provide specific details of the circumstances giving rise to the case, but an individual has the right to be put on fair notice of the charges against them. The government is either being overly inclusive in the indictment regarding the dates of the alleged conspiracy, or the indictment fails to include everything.
Unfortunately, the indictment does not discuss in detail the government’s theory of the case and fails to connect the dots between the allegations and counts contained therein. The indictment only gives a cursory overview of the alleged scheme but manages to accuse nine family members of conspiring to defraud the IRS by means of identity theft. As this case continues, it will be interesting to hear the government’s foundation for the alleged conspiracy of fraud and identity theft.
The author of this blog is Erich Ferrari, an attorney specializing in Federal Criminal Defense matters. If you have any questions please contact him at 202-280-6370 or ferrari@ferrari-legal.com.
Former Deputy Director of USAID Contractor and His Wife Accused of Embezzlement
Mark Adams, 43, a former deputy director at a private USAID contractor, and his wife, Latasha Bell, 36, have been indicted by a federal grand jury on charges that they acquired more than $1 million from a program meant to address global health problems such as HIV/AIDS. Among other things, Adams and Bell are accused in the indictment of using the money to renovate their home and purchase two luxury cars worth over $110,000.
The U.S. Agency for International Development, or USAID, is an independent government agency that lends support mostly to developing countries in order to assist with economic growth, global health and other development relief. According to the forty-page indictment, USAID contracted with an unidentified outside company to perform analysis and information management services. Adams served with the company as the deputy director and project manager on the contract.
The 23-count indictment was filed April 10, 2012 in the U.S. District Court for the District of Columbia. It includes one count of conspiracy, ten counts of wire fraud, two counts of mail fraud, seven counts of theft from a program receiving federal funds, one count of conspiracy to launder money, and two counts of aggravated identity theft. Both individuals pleaded not guilty to the charges at their arraignments on April 11, 2012.
Adams has been accused of using his position as deputy director to submit and approve false and fraudulent invoices worth more than $1 million between 2005 and 2010. The alleged invoices claimed to bill for services purportedly provided by Bell and companies controlled by Adams’s two friends, an unidentified co-conspirator and co-conspirator Everett Lipscomb Jr. The alleged scheme caused the USAID contractor to pay the invoices for services not rendered.
The indictment indicates that the unidentified co-conspirator provided testimony to the grand jury. Further, the press release issued by the U.S. Attorney’s Office for D.C. reveals that Lipscomb pleaded guilty to one count of conspiracy to commit wire fraud on March 2, 2012. The tedious detail provided in the indictment, and the fact that the indictment against Adams and Bell came several weeks after Lipscomb’s plea, indicates that the entire case against them is based on the statements and information provided by the co-conspirators.
The co-conspirators, who are childhood friends of Adams’, have managed to push a majority of the blame on Adams and Bell while receiving only minimal charges against themselves. It is unclear what, if any, charges have been brought against the unidentified co-conspirator, but Lipscomb’s plea reflects the favorable treatment he received for turning against Adams and Bell.
The author of this blog is Erich Ferrari, an attorney specializing in Federal Criminal Defense matters. If you have any questions please contact him at 202-280-6370 or ferrari@ferrari-legal.com.
Six Charged with Scheme to Defraud IRS by Using Deceased Taxpayer Information
A 10-count indictment was unsealed Wednesday charging six people with various offenses related to a scheme to defraud the Internal Revenue Service (IRS) of at least $1.7 million in fraudulently obtained tax returns, often filed in the names of recently deceased taxpayers, according to Justice Department press release released Wednesday.
According to the indictment, between April 15, 2009, to at least August 2011, Muaad Salem, Fahim Sulieman, Hanan Widdi, Najeh Widdi, Hazem Woodi and Daxesj Patel and other unknown co-conspirators allegedly defrauded the United States by filing false and fraudulent tax returns, many in the names of recently deceased taxpayers, and directing refunds to controlled locations in the state of Florida.
The indictment further alleges that the U.S. Treasury checks generated by the false and fraudulent returns would then be sent by the U.S. mail to co-conspirators in Ohio who would sell and distribute the checks for negotiation at various businesses and banking institutions.
The six are also charged with three counts of mail fraud and two counts of aggravated identity theft. In addition to the other charges, Patel is separately charged with two counts of making a false claim against the United States and with making a false statement to law enforcement officials investigating the crimes.
This case contemplates a hybrid of alleged crimes centered around a financial scheme to defraud the IRS. Unknown to most taxpayers, the IRS has its own Criminal Investigation Unit responsible for investigating fraudulent tax crimes. The CI Unit is actually quite substantial, with twenty-six field offices and 2,800 special agents. Investigations are usually targeted at legal source tax crimes, illegal source financial crimes, and counter narcotics and terrorism crimes. The CI Unit works in conjunction with the Justice Department to bring criminal charges against a person or entity once the fraud is substantiated by documentary evidence, usually just by following the paper trail connected to the money.
The author of this blog is Erich Ferrari, an attorney specializing in Federal Criminal Defense matters. If you have any questions please contact him at 202-280-6370 or ferrari@ferrari-legal.com.
