TODAY’S CRIMINAL TAX PROSECUTIONS
TODAY’S CRIMINAL TAX PROSECUTIONS
From IRS Criminal Investigations’ Press Office
Date: August 11, 2022
Parent sentenced for fraud and bribery in college admissions case.
BOSTON — A Pennsylvania man was sentenced today in federal court in Boston in connection with using fraud and bribery to facilitate his child's acceptance to Georgetown University.
Robert Repella, of Ambler, Pennsylvania, was sentenced by U.S. District Court Judge Allison D. Burroughs to one year of probation, with the first 25 days spent in home detention, 220 hours of community service and a fine of $220,000. In May 2020, Repella pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud.
Repella agreed to pay Gordon Ernst, the head Georgetown tennis coach at the time, more than $120,000 directly, in exchange for purporting to recruit his daughter to the Georgetown tennis team. Repella was not involved in the college admissions conspiracy led by William "Rick" Singer, which also involved Ernst.
Repella first met with Ernst in August 2017 and agreed to pay Ernst to use one of his six yearly recruitment slots for Repella's daughter, even though her abilities were not at the level of a typical Georgetown recruit. During an arranged Georgetown campus visit for Repella's daughter, Repella handed Ernst a check in the amount of $25,000. Repella made a second payment of $25,000 to Ernst slightly more than two weeks later. After Ernst designated Repella's daughter as one of his tennis recruits, Repella made additional payments to Ernst, or for his benefit, through August 2018, including tuition payments to Ernst's daughters' private high school.
Ernst previously pleaded guilty and was sentenced to 30 months in prison, two years of supervised release and ordered to forfeit $3,435,053.
Springfield company pays $1 million related to federal embezzlement, bribery investigation
Springfield, MO — A Springfield company will pay more than $1 million in forfeiture to the federal government under the terms of a non-prosecution agreement announced today, which acknowledges the criminal conduct of two former executives who are involved in a related criminal investigation.
"Company owners and executives abused their leadership positions in an unrelated charity to illegally enrich themselves and their for-profit company," said U.S. Attorney Teresa Moore. "More than $1 million from the health care charity, primarily funded by Medicaid reimbursements, was siphoned to Pro1 through a series of illicit payments over several years. Pro1 has accepted responsibility for the criminal conduct of its former executives and cooperated with the federal investigation. Those embezzled funds will be recouped by the government under the terms of this non-prosecution agreement."
"When federal funds are misappropriated, it harms the U.S. government and its taxpayers," said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation's St. Louis Field Office. "Pro1 executives abused their positions by causing federal funds meant for charitable purposes to become part of a scheme designed for their own financial gain. This non-prosecution agreement holds Pro1 accountable and restores the funds to the federal government."
"This non-prosecution agreement holds Pro1 accountable for its actions in a scheme that directly benefited Pro1 and certain owners of the company in over $1 million in cost-savings and reduced expenses," said FBI Kansas City Special Agent in Charge Charles Dayoub. "It reiterates that public funds provided to non-profit organizations and companies are not to be abused and the FBI, alongside other federal agencies, is committed to ensuring the public's money is not used for inappropriate purposes or personal gain."
"The diversion and theft of over $1 million of federal sourced funds, designated for employment training, behavioral healthcare and other public services by former executives of Preferred Family Healthcare and Pro1, was a gross abuse of the positions of trust they once held," said Special Agent-in-Charge Steven Grell, Dallas Region, U.S. Department of Labor, Office of Inspector General. "They chose their own personal gain and benefit over the greater good of the public and the nonprofit organization whom they served. This agreement demonstrates Pro1's willingness to take corrective actions regarding the fraudulent actions of its former executives."
"Our investigation uncovered a scheme spanning several years to siphon money from a community-based health center to a for-profit company," said Special Agent in Charge William J. Hannah of the Department of Justice Office of the Inspector General Chicago Field Office. "Today, we're holding Pro1 accountable for this scheme and recovering over $1 million in ill-gotten gains. This non-prosecution agreement reiterates government funds are provided to these charitable organizations to benefit the public, and self-enriching schemes to steal from these government programs will not be tolerated."
Pro1 IAQ, Inc., a Missouri corporation with operations in Springfield and Boulder, Colorado, designs and sells indoor thermostats nationwide. By signing the non-prosecution agreement, representatives of Pro1 admitted that former executive officers engaged in a conspiracy to embezzle funds from Preferred Family Healthcare, Inc., a Springfield-based nonprofit corporation, from 2008 to November 2017. Pro1 benefited from acts of alleged criminal misconduct by the executives, who were also executives of the charity and channeled funds from Preferred Family Healthcare to financially enrich the firm. Under the terms of the non-prosecution agreement, Pro1 must forfeit $1,057,617 to the federal government, which is the amount Pro1 gained from the conspiracy.
Among the specific actions acknowledged in the non-prosecution agreement, executives and employees of Preferred Family Healthcare were utilized to complete tasks related to Pro1 operations, sometimes working full time for Pro1 while being paid by the charity. Additionally, the charity paid Pro1 for the lease of a warehouse for approximately three years and provided office space in the charity's main office building at no cost to Pro1 for more than a year.
While Pro1 did not provide appropriate oversight regarding the actions of its agents, which could be considered willful blindness, many of the actions taken by Pro1's executives were done without specific knowledge of the president and the corporate board of directors. Pro1, as a part of this investigation, has discontinued the leadership roles of those executives and has cooperated fully with the federal criminal investigation.
Preferred Family Healthcare agreed earlier this year to pay more than $8 million in forfeiture and restitution to the federal government and the state of Arkansas under the terms of a non-prosecution agreement, which likewise acknowledges the criminal conduct of its former officers and employees.
Several former executives of Preferred Family Healthcare, former members of the Arkansas state legislature, and others have been convicted in federal court as part of the multi-jurisdiction, federal investigation. As part of the federal investigation, the former chief operating officer and chief financial officer of Preferred Family Healthcare were indicted by a federal grand jury on March 29, 2019. They pleaded not guilty, and are awaiting trial, which is scheduled to begin on Oct. 3, 2022.
Kingpin sentenced to life in prison plus 120 months for leading a Birmingham-based continuing criminal enterprise and conspiracy to distribute methamphetamine, heroin, fentanyl, and cocaine
BIRMINGHAM — A federal judge sentenced a Bessemer man charged under the "Kingpin" statute for leading a continuing criminal enterprise and large-scale drug trafficking conspiracy, announced U.S. Attorney Prim F. Escalona, Internal Revenue Service Criminal Investigation (IRS-CI) Atlanta Field Office Special Agent in Charge James E. Dorsey and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
United States District Judge Annmarie C. Axon sentenced Rolando Antuain Williamson, aka "Baldhead" and "Ball Head," of Bessemer, Alabama, to life in prison plus 120 months for leading a multi-million dollar continuing criminal enterprise; conspiring to distribute or possess with intent to distribute heroin, fentanyl, cocaine, methamphetamine, and marijuana; distributing or possession with intent to distribute heroin, fentanyl, cocaine, methamphetamine, and marijuana; using, carrying, or possessing a firearm during or in furtherance of a drug trafficking crime; and using a communication facility to commit a drug trafficking crime.
Two codefendants in the drug conspiracy were also sentenced by Judge Axon. Ishmywel Calid Gregory, also known as "C," of Mulga, Alabama, was sentenced to 480 months in prison, and Hendarius Lamar Archie, also known as "Hen," of Bessemer, Alabama, was sentenced to 169 months. Gregory and Archie were convicted of conspiring to distribute or possess with intent to distribute heroin, fentanyl, cocaine, methamphetamine, and marijuana. Both Gregory and Archie were also convicted of distributing or possessing with intent to distribute cocaine and marijuana. Archie was also convicted of using, carrying, or possessing a firearm during or in furtherance of a drug trafficking crime.
On April 18, 2022, after a week-long trial, a jury convicted Williamson, Gregory, Archie, and a fourth co-defendant of the charges. A total of eighteen people were charged in the indictment returned on October 29, 2019. The indictment was the result of a three-year Organized Crime Drug Enforcement Task Force ("OCDETF") investigation into the drug-trafficking enterprise based in Western Jefferson County. The task force identified acts in furtherance of the conspiracy committed by members of the organization over a period of six years. Fifteen of the defendants have now been sentenced, and three remaining defendants await sentencing later this month.
The OCDETF agencies involved in this investigation are the FBI, IRS, member agencies of the FBI North Alabama Safe Streets Task Force, the Jefferson County Sheriff's Office, and the Bessemer Police Department.
The North Alabama Safe Streets Task Force arrested Williamson the morning of August 22, 2019, in the parking lot of a grocery store located in Homewood, Alabama. Williamson was driving a 2016 Dodge Hellcat worth $80,000. At the time of arrest, Williamson was armed two loaded pistols, additional loaded magazines, and was carrying almost $14,000 in cash. All other members of the conspiracy were arrested on or about November 13, 2019.
At the time of Williamson's arrest, law enforcement officers seized from him and three of his stash houses, 366 grams of heroin/fentanyl, 109 grams of suspected cocaine, 573 grams of pure methamphetamine, 52 kilos of marijuana, over $97,000 in cash, multiple firearms, and over 1700 rounds of ammunition.
"As a result of the sustained and extensive investigation by our many law enforcement partners, this drug kingpin will spend the rest of his life in prison," said U.S. Attorney Escalona. "It is difficult to imagine the harm to the community caused by this criminal enterprise. The addictions and other adverse health consequences, the economic harm, and the associated violence of drug trafficking will hopefully come to an end after these prosecutions. We are grateful and proud of the excellent work of this team of law enforcement professionals."
"With this term of imprisonment, Williamson's days as an international drug kingpin are over, and it is a decisive blow against the drug trafficking network. This was a team effort with our law enforcement partners, and I am proud of the work of the FBI's North Alabama Safe Streets Task Force to bring members of this drug enterprise to justice," said FBI SAC Johnnie Sharp.
"Great job by the investigators. These criminals were responsible for a major amount of drugs flowing through Jefferson County. These convictions are huge in our fight against illegal drugs," said Sheriff Mark Pettway.
"First, I would like to take this opportunity to say thanks to all agencies involved in the investigation and ultimate convictions of those involved in this major drug distribution criminal enterprise. This is an example of what can be accomplished when agencies work together. It is our hope that these convictions will send a strong message to others that are committing or thinking about committing like crimes in Bessemer and surrounding areas. The Bessemer Police Department will remain committed to working with our Federal, State and local Law Enforcement partners to apprehend and convict other drug traffickers that attempt to operate in the City of Bessemer and surrounding areas," said Bessemer Police Chief Michael Roper.
Forfeiture was obtained for two of Williamson's high-end vehicles: a $46,000 Ford F-250 King's Ranch and $37,000 Cadillac Escalade; over $100,000 dollars in cash; $45,000 in jewelry; and all firearms and ammunition used to facilitate the drug trafficking enterprise. Additionally, the United States proved $36,615,000 in gross proceeds against Williamson, and $4,000,700 in gross proceeds against Gregory.
This investigation is part of the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF is an independent component of the U.S. Department of Justice. Established in 1982, OCDETF is the centerpiece of the Attorney General's strategy to combat transnational-organized-crime and to reduce the availability of illicit narcotics in the nation by using a prosecutor-led, multi-agency approach to enforcement. OCDETF leverages the resources and expertise of its partners in concentrated, coordinated, long-term enterprise investigations of transnational organized crime, money laundering, and major drug trafficking networks.