IRS CI Fiscal Year 2014 Annual Business Report - More Convictions & More Jail Time!
Richard Weber, Chief, IRS Criminal Investigation - There is no doubt that we
have had to be creative to overcome some of the budget challenges this year.
But in so doing, we
maintained a steady focus on what is important. Our highest priority is to
enforce our country’s tax laws and
support tax administration to ensure compliance with the law and combat fraud.
This annual report
includes case summaries that represent the diversity and complexity of those
investigations such as
tax-related identity theft, money laundering, public corruption and terrorist
financing. Our cases
touched almost every part of the world.
They had a significant impact on tax administration and were
some of the most successful in the history of CI. Some of the biggest stories
of the year included:
Silk Road and
In the largest criminal tax case ever filed, Credit Suisse pleaded guilty to conspiracy to aid
assist U.S. taxpayers in
filing false income tax returns and agreed to pay a total of $2.6 billion.
Following the Credit Suisse
investigation, IRS-CI led the case against Bank Leumi Group, a major Israeli international bank that
admitted conspiring to aid and assist U.S. taxpayers to prepare and present
false tax returns.
unprecedented agreement marks the first time an Israeli bank has admitted to
such criminal conduct. Bank
Leumi Group will pay the U.S. a total of $270 million and cease to provide banking and investment
services for all accounts held or beneficially owned by U.S. taxpayers.
BNP Paribas was the
largest prosecution ever brought against a financial institution and one of the
most significant criminal
prosecutions of sanction evasion in U.S. history. Using our unique
investigative skills, IRS-CI worked hard to
protect the integrity of our financial system.
Liberty Reserve, one of the World's largest digital currency
companies, and seven of its principals and employees were indicted for
allegedly running a $6 billion money
laundering scheme. Ross William Ulbricht, creator and owner of "Silk
Road" website was indicted on
charges of engaging in a continuing criminal enterprise, money laundering and other federal charges.
Silk Road was used by more than 100,000 users to buy and sell illegal drugs and other unlawful goods and
services. IRS-CI also worked significant tax investigations which are document in this annual report.
example, Gerald A. Poynter was sentenced to 156 months in prison and ordered to pay $951,930 in
restitution for filing fraudulent tax returns and attempting to receive nearly $100 million in fraudulent
refunds from the IRS. Paul M. Daugerdas was sentenced to 180 months in prison, ordered to pay
restitution to the IRS of $371,006,397 and ordered to forfeit $164,737,500 in proceeds for conspiring to
defraud the IRS, to evade taxes, commit mail and wire fraud, and corruptly endeavoring to obstruct
and impede the internal revenue laws. The 20-year scheme generated over $7
billion of fraudulent tax
losses and yielded approximately $95 million in fees to Daugerdas personally.
We also continued to make
tremendous headway with some of the most significant identity theft cases to date. Mauricio Warner was
sentenced to 240 months in prison and ordered to pay $5 million in restitution after he was convicted of
wire fraud, aggravated identity theft, filing false claims, and money laundering.
Ogiesoba Osula was
sentenced to 210 months in prison and ordered to pay $15.9 million in
after he was convicted for
various fraud schemes including aggravated identity theft. And Arthur
Grigorian, Ernest Soloian
and Hovhannes Harutyunyan and 51 other defendants were indicted for theft of over 2000 identities and
refund claims of over $20 million dollars.
The budget challenges
facing our agency are nothing new. In the past five years, CI’s staff has been
reduced approximately 11
percent bringing staffing to 1970’s levels. This trend cannot continue. I’m
proud of this agency and the
reputation that we have earned as the best financial investigators in the
Looking ahead to Fiscal
Year 2015, we will continue to build an agency that has the tools and expertise
to enforce our nation’s tax
laws. We will not lose sight of taking care of our people and will continue to
push initiatives with that in
mind to include developing leadership candidates, improving employee
satisfaction and engagement, investing
in technology, and improving communication and transparency.
investments in people, increased communication, enhanced technology, and
domestic and global law enforcement partners, CI will continue to be the
worldwide leader in tax and
highest priority is to enforce our country’s tax laws and support tax
The Fiscal Year 2014
investigative priorities were:
Marini & Associates, PA concentrates its practice in Representation before the IRS and All Other Tax Authorities, IRS Collections, Offers in Compromis, Installment Payment Plans, Appeals, Sales Tax Audits, International and Tax Law, Asset Protection and Estate Planning.