D.C. Police Officer Convicted on Tax Evasion Charges

Authorities have recently announced that Michael C. Irving, a homicide detective and 18-year veteran of the Metropolitan Police Department (MPD), was recently convicted of two counts of felony tax evasion.^[1] The jury was unable to reach a verdict on four counts of tax evasion, resulting in the court declaring a mistrial on those counts. The jury acquitted Irving of three counts of filing false claims.^[2]

According to evidence submitted during trial, Irving fraudulently arranged for the MPD to stop withholding taxes from his paychecks.^[3] During the period from 2002 through 2005, Irving caused false W-4 withholding forms to be filed with the MPD. These forms stated that he was “exempt” from withholding because he owed no taxes for the prior or current years.^[4]

In addition, Irving filed a 2002 tax return in which he claimed he made zero wages. According to evidence introduced at trial, Irving earned $155,211 in wages for 2002. During the calendar years of 2003 to 2005, Irving did not file any tax returns with the IRS and the OTR, and paid very little to no federal or D.C. income taxes for those years.^[5] Authorities contend that instead of paying the money owed in federal and D.C. taxes for these years, Irving bought custom-tailored suits, jewelry for his wife, Redskins tickets, and made renovations to his $805,000 home.^[6]

In regards to the case, Tax Division Assistant Attorney General Nathan J. Hochman has stated that, “No one is above the law, from the president of a Fortune 500 company to a waiter at a local restaurant to a veteran homicide detective, everyone has to pay their fair share of income taxes. Through the National Tax Defier Initiative (TAXDEF Initiative), law-abiding taxpayers can rest assured that the United States will enforce the tax laws fully and fairly against all citizens.”^[7]

A status hearing has been set for July 29, 2008. Irving faces a maximum sentence for both counts of up to 15 years in prison and a $250,000 fine on the federal charge as well as having to pay back all his taxes plus penalties and interest.^[8]

According to Eileen Mayer, Chief, IRS Criminal Investigation, “It’s deeply disappointing when anyone asked to enforce the law doesn’t personally follow it. Filing accurate tax returns is a legal requirement. Regardless of where you work or what you do, there is a heavy price to pay for ignoring your tax responsibilities.”^[9]

Under 26 U.S.C. § 7203 it is a felony for anyone that is required to pay an estimated tax or to make a tax return to willfully fail to pay such taxes or make such return.^[10] If an individual is convicted of willfully violating section 7203, the punishment will consist of a fine not more than $25,000 ($100,000 in the case of a corporation), imprisonment for not more than five years, or both.^[11]

Federal criminal defense attorney, Douglas McNabb, has previously written on tax evasion crimes. Some of his work on the subject can be found here.

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[1] Press Release, United States Department of Justice, D.C. Metropolitan Police Detective Turned Tax Defier Convicted of Tax Fraud, May 19, 2008 (available at http://www.usdoj.gov/opa/pr/2008/May/08_tax_437.html).
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] Id.
[7] Id.
[8] Id.
[9] Id.
[10] 26 U.S.C. § 7203.
[11] Id.

D.C. Police Officer Convicted on Tax Evasion Charges

Authorities have recently announced that Michael C. Irving, a homicide detective and 18-year veteran of the Metropolitan Police Department (MPD), was recently convicted of two counts of felony tax evasion.^[1] The jury was unable to reach a verdict on four counts of tax evasion, resulting in the court declaring a mistrial on those counts. The jury acquitted Irving of three counts of filing false claims.^[2]

According to evidence submitted during trial, Irving fraudulently arranged for the MPD to stop withholding taxes from his paychecks.^[3] During the period from 2002 through 2005, Irving caused false W-4 withholding forms to be filed with the MPD. These forms stated that he was “exempt” from withholding because he owed no taxes for the prior or current years.^[4]

In addition, Irving filed a 2002 tax return in which he claimed he made zero wages. According to evidence introduced at trial, Irving earned $155,211 in wages for 2002. During the calendar years of 2003 to 2005, Irving did not file any tax returns with the IRS and the OTR, and paid very little to no federal or D.C. income taxes for those years.^[5] Authorities contend that instead of paying the money owed in federal and D.C. taxes for these years, Irving bought custom-tailored suits, jewelry for his wife, Redskins tickets, and made renovations to his $805,000 home.^[6]

In regards to the case, Tax Division Assistant Attorney General Nathan J. Hochman has stated that, “No one is above the law, from the president of a Fortune 500 company to a waiter at a local restaurant to a veteran homicide detective, everyone has to pay their fair share of income taxes. Through the National Tax Defier Initiative (TAXDEF Initiative), law-abiding taxpayers can rest assured that the United States will enforce the tax laws fully and fairly against all citizens.”^[7]

A status hearing has been set for July 29, 2008. Irving faces a maximum sentence for both counts of up to 15 years in prison and a $250,000 fine on the federal charge as well as having to pay back all his taxes plus penalties and interest.^[8]

According to Eileen Mayer, Chief, IRS Criminal Investigation, “It’s deeply disappointing when anyone asked to enforce the law doesn’t personally follow it. Filing accurate tax returns is a legal requirement. Regardless of where you work or what you do, there is a heavy price to pay for ignoring your tax responsibilities.”^[9]

Under 26 U.S.C. § 7203 it is a felony for anyone that is required to pay an estimated tax or to make a tax return to willfully fail to pay such taxes or make such return.^[10] If an individual is convicted of willfully violating section 7203, the punishment will consist of a fine not more than $25,000 ($100,000 in the case of a corporation), imprisonment for not more than five years, or both.^[11]

Federal criminal defense attorney, Douglas McNabb, has previously written on tax evasion crimes. Some of his work on the subject can be found here.

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[1] Press Release, United States Department of Justice, D.C. Metropolitan Police Detective Turned Tax Defier Convicted of Tax Fraud, May 19, 2008 (available at http://www.usdoj.gov/opa/pr/2008/May/08_tax_437.html).
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] Id.
[7] Id.
[8] Id.
[9] Id.
[10] 26 U.S.C. § 7203.
[11] Id.

D.C. Police Officer Convicted on Tax Evasion Charges

Authorities have recently announced that Michael C. Irving, a homicide detective and 18-year veteran of the Metropolitan Police Department (MPD), was recently convicted of two counts of felony tax evasion.^[1] The jury was unable to reach a verdict on four counts of tax evasion, resulting in the court declaring a mistrial on those counts. The jury acquitted Irving of three counts of filing false claims.^[2]

According to evidence submitted during trial, Irving fraudulently arranged for the MPD to stop withholding taxes from his paychecks.^[3] During the period from 2002 through 2005, Irving caused false W-4 withholding forms to be filed with the MPD. These forms stated that he was “exempt” from withholding because he owed no taxes for the prior or current years.^[4]

In addition, Irving filed a 2002 tax return in which he claimed he made zero wages. According to evidence introduced at trial, Irving earned $155,211 in wages for 2002. During the calendar years of 2003 to 2005, Irving did not file any tax returns with the IRS and the OTR, and paid very little to no federal or D.C. income taxes for those years.^[5] Authorities contend that instead of paying the money owed in federal and D.C. taxes for these years, Irving bought custom-tailored suits, jewelry for his wife, Redskins tickets, and made renovations to his $805,000 home.^[6]

In regards to the case, Tax Division Assistant Attorney General Nathan J. Hochman has stated that, “No one is above the law, from the president of a Fortune 500 company to a waiter at a local restaurant to a veteran homicide detective, everyone has to pay their fair share of income taxes. Through the National Tax Defier Initiative (TAXDEF Initiative), law-abiding taxpayers can rest assured that the United States will enforce the tax laws fully and fairly against all citizens.”^[7]

A status hearing has been set for July 29, 2008. Irving faces a maximum sentence for both counts of up to 15 years in prison and a $250,000 fine on the federal charge as well as having to pay back all his taxes plus penalties and interest.^[8]

According to Eileen Mayer, Chief, IRS Criminal Investigation, “It’s deeply disappointing when anyone asked to enforce the law doesn’t personally follow it. Filing accurate tax returns is a legal requirement. Regardless of where you work or what you do, there is a heavy price to pay for ignoring your tax responsibilities.”^[9]

Under 26 U.S.C. § 7203 it is a felony for anyone that is required to pay an estimated tax or to make a tax return to willfully fail to pay such taxes or make such return.^[10] If an individual is convicted of willfully violating section 7203, the punishment will consist of a fine not more than $25,000 ($100,000 in the case of a corporation), imprisonment for not more than five years, or both.^[11]

Federal criminal defense attorney, Douglas McNabb, has previously written on tax evasion crimes. Some of his work on the subject can be found here.

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[1] Press Release, United States Department of Justice, D.C. Metropolitan Police Detective Turned Tax Defier Convicted of Tax Fraud, May 19, 2008 (available at http://www.usdoj.gov/opa/pr/2008/May/08_tax_437.html).
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] Id.
[7] Id.
[8] Id.
[9] Id.
[10] 26 U.S.C. § 7203.
[11] Id.

Co-defendant in Sex Trafficking Case Pleads Guilty

Authorities have announced that Pablo Bonifacio pleaded guilty in federal court in Los Angeles, to conspiracy to commit sex trafficking and transporting illegal aliens in the pending case of United States v. Vasquez-Valenzuela. Another eight defendants are scheduled for trial on Sept. 2, 2008, in Los Angeles.^[1]

Pursuant to the terms of the plea agreement, Bonifacio faces a statutory maximum sentence of 15 years in prison and a $500,000 fine. Bonifacio’s sentencing is scheduled to be in Los Angeles on July 28, 2008.^[2]

Bonifacio has admitted to conspiring with multiple co-defendants and others in a scheme to transport young Guatemalan women and girls into the United States illegally and to hold and harbor them in the Los Angeles area for the purpose of having them participate in prostitution.^[3] According to his admissions at the plea hearing, Bonifacio was paid for his role in taking young females to different locations within the Los Angeles area to engage in prostitution.^[4] Furthermore, the defendant stated that co-defendants arranged for young females to be recruited from Guatemala–often by promising them jobs–and were thereafter brought into the United States illegally for prostitution.^[5] In order to repay the fees for being brought into the United States the young women and girls were forced to engage in prostitution.^[6]

According to Acting Assistant Attorney General Grace Chung Becker, “The defendant was a willing participant in a conspiracy to engage in sex trafficking of female victims from Central America.” Becker went on to state, “The Department of Justice will continue to find and prosecute anyone who works to aid human trafficking schemes.”^[7]

U.S. Attorney Thomas O’Brien added, “Mr. Bonifacio has admitted his role in a scheme that lured young girls into the United States with promises of a better life, but the American dream turned into a nightmare when those children were forced to work as prostitutes.”^[8]

Human smuggling is prosecuted under 8 U.S.C. § 1324, the potential punishment can be up to 15 years in prison if the crime was committed for the purpose of commercial or private financial gain.^[9] The pertinent subsection to the case here is § 1324(2)(b)(ii) which states that, “Any person who, knowing or in reckless disregard of the fact that an alien has not received prior official authorization to come to, enter, or reside in the United States, brings to or attempts to bring to the United States in any manner whatsoever, such alien, regardless of any official action which may later be taken with respect to such alien shall in the case of an offense done for the purpose of commercial advantage or private financial gain, be fined under title 18 and shall be imprisoned not less than 3 nor more than 10 years, and for any other violation, not less than 5 nor more than 15 years.”^[10]

Federal criminal defense attorney, Douglas McNabb, has written extensively on human trafficking. Some of his work in the area can be seen here.

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[1] Press Release, United States Department of Justice, Man Pleads Guilty to Conspiracy to Engage in Sex Trafficking and Transporting Illegal Aliens in Los Angeles, May 8, 2008 (available at http://www.usdoj.gov/opa/pr/2008/May/08_crt_396.html).
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] Id.
[7] Id.
[8] Id.
[9] 18 U.S.C. § 1324.
[10] 18 U.S.C. § 1324(2)(b)(ii).

Lopez, Mondragon Sentenced in Houston Human Smuggling Case

Acting Assistant Attorney General for the Civil Rights Division Grace C. Becker and U.S. Attorney for the Southern District of Texas Don DeGabrielle have announced that Victor Omar Lopez and Oscar Mondragon, two brothers, have been sentenced for their participation in a scheme to smuggle Central American women and girls into the United States and force them to work in bars and cantinas in the Houston area.^[1] In addition to being sentenced to 109 months in prison followed by three years of probation, Lopez was also ordered to, jointly with his co-defendants, pay $1.7 million in restitution to the victims.^[2] Mondragon was sentenced to 180 months of imprisonment and was ordered to pay, jointly and severally with his co-defendants, over $1.1 million of the total of over $1.7 million in restitution awarded in the case.^[3]

In total, eight defendants have been convicted in connection with this scheme. According to authorities, defendants used threats to harm the victims and their families if they attempted to leave prior to paying off their smuggling debts.^[4]

Lopez and Mondragon have both previously pleaded guilty to conspiring to hold persons in a condition of peonage; to illegally recruiting, harboring and transporting persons for labor and services; and to conspiring to bring, harbor, and transport known illegal aliens for commercial advantage and private financial gain. Peonage refers to a condition of involuntary servitude imposed upon an individual to extract repayment of a debt.^[5]

Authorities have stated that Lopez and Mondragon attracted Central American women to the United States with promises of employment.^[6] However, once the young women arrived, they were forced to work in the bars and cantinas of the defendants selling alcohol to male customers. The women were repeatedly subjected to threats of harm to themselves and family members in order to compel their servitude.^[7]

“Defendants Victor Omar Lopez and Oscar Mondragon were members of an international conspiracy that lured young women from Central America to Texas on false promises of a better life and then betrayed that promise by holding these women in a condition of forced servitude in restaurants and bars in Houston,” said Acting Assistant Attorney General Grace Chung Becker. “This is a despicable crime that harms all of society, and the Department of Justice will continue to aggressively work to prosecute human traffickers.”^[8]

According to U.S. Attorney DeGabrielle, “The excellent investigative efforts from our combined Human Trafficking Rescue Alliance were more than a match for the depraved indifference of these organized criminals.”^[9]

Thus far, co-defendants Maximino Mondragon and Walter Corea have pled guilty and are awaiting sentencing.^[10] Olga Mondragon, another co-defendant, who was convicted of charges stemming from her involvement in these schemes was sentenced to 84 months in prison. Co-defendant Maria Fuentes was found guilty of harboring the young women for financial gain and sentenced to 30 months in prison. Co-defendant Lorenza Reyes-Nunez was convicted of obstruction of justice and sentenced to 19 months imprisonment.^[11] Co-defendant Kerin Silva was convicted of Conspiracy to Smuggle Aliens and sentenced to 12 months home detention followed by three years of probation.^[12]

Human smuggling is prosecuted under 8 U.S.C. § 1324, the potential punishment can be up to 10 years in prison if the crime was committed for the purpose of commercial or private financial gain.^[13] In particular the U.S. has aggressively fought sex trafficking. In 2000, the U.S. Congress passed legislation to fight trafficking for purposes of engaging in sexual activity.^[14] That legislation makes it a crime for a person to recruit, entice, harbor, transport, or obtain by any means a person, knowing that force, fraud, or coercion will be used to cause that person to engage in a commercial sex act. A commercial sex act means “any sex act, on account of which anything of value is given to or received by any person.^[15] The punishment for an offense involving fraud, force, or coercion is a fine, imprisonment for any term of years or for life, or both.^[16]

Federal criminal defense attorney, Douglas McNabb, has written extensively on human trafficking. Some of his work in the area can be seen here.

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[1] Press Release, United States Department of Justice, Two Men Sentenced for Human Trafficking and Alien Smuggling Charges, April, 28, 2008 (available at http://www.usdoj.gov/opa/pr/2008/April/08_crt_350.html).
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] Id.
[7] Id.
[8] Id.
[9] Id.
[10] Id.
[11] Id.
[12] Id.
[13] 18 U.S.C. § 1324.
[14] 18 U.S.C. § 1591.
[15] 18 U.S.C. §1591(c)(1).
[16] 18 U.S.C. §1591(b)(1).