Federal Criminal Defense Lawyers

Sunday, July 17, 2011

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Barry S. Szafran Waived His Right to Indictment, and Pleaded Guilty to Illegally Receiving a Gratuity
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 9:43 AM July 17, 2011

The U.S. Attorneys Office District of Connecticut on July 15, 2011 released the following: JEWETT CITY MAN PLEADS GUILTY TO ACCEPTING KICKBACKS FROM MILITARY SUPPLIER IN KUWAIT David B. Fein, United States Attorney for the District of Connecticut, announced that BARRY S. SZAFRAN, 49, of Jewett City, waived his right to indictment and pleaded guilty today before United States District Judge Mark R. Kravitz in New Haven to one count of illegally receiving a gratuity. The charge relates to SZAFRANs accepting kickbacks from a foreign supplier of fire safety systems to a military base in Kuwait in Iraq. According to court documents and statements made in court, SZAFRAN was the civilian fire alarm manager at Camp Arifjan, Kuwait, for a prime contractor for the U.S. Army on a government-owned, contractor-operated base. In this position, SZAFRAN had a leading role in maintaining an adequate supply of repair/ replacement parts for fire safety systems for the facility. In pleading guilty, SZAFRAN admitted that, from April 2008 to April 2009, he repeatedly provided favorable treatment to a local parts

vendor, which was a subcontractor for a larger supplier, in connection with certain contracts. During this time period, SZAFRAN received things of value from the local parts vendor, including a roundtrip airplane ticket between Kuwait and Rhode Island, meals and scented candles. On April 20, 2008, SZAFRAN sent an email to the vendors project manager instructing the manager to create and submit three quotations for batteries, including two falsified quotations on different companies letterheads, and instructed the project manager to make the vendors price quote to be the lowest. Also, on July 9, 2008, SZAFRAN recommended that the contractor accept the vendors bid for a separate quote for a fire alarm panel and reject the bids of two other companies. The vendor then purchased a round-trip airplane flight for SZAFRAN. Because his flight was paid for by the vendor, SZAFRAN was able to obtain from his employer $2,169 in cash in lieu of travel expenses for which the contractor, in turn, received reimbursement from the U.S. Army. Additional e-mails examined during the course of the investigation revealed that SZAFRAN also provided details of competitors bid and pricing information. During his employment with the contractor, SZAFRAN also received

several meals paid for by the vendor, as well as scented candles from an employee of the supplier. And, during the spring of 2009, SZAFRAN stole a box of smoke detectors from the contractor, valued at approximately $5000, and provided them to the vendor. Judge Kravitz has scheduled sentencing for October 3, 2011, at which time SZAFRAN faces a maximum term of imprisonment of two years and a fine of up to $250,000. This case is being investigated by the Defense Criminal Investigative Service and the United States Army, Criminal Investigative Division. The case is being prosecuted by Assistant United States Attorney Christopher W. Schmeisser. To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal. The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

Douglas J. Fitzgerald Sentenced by a Chief U.S. Federal Judge for Tax Evasion
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 9:48 AM July 17, 2011

The U.S. Attorneys Office District of Idaho on July 15, 2011 released the following: Former Eagle Businessman Sentenced To 51 Months For Tax Evasion BOISE Douglas J. Fitzgerald, 69, formerly of Eagle, Idaho, was sentenced yesterday to 51 months in prison followed by three years of supervised release for attempting to evade income tax, U.S. Attorney Wendy J. Olson announced.

Chief U.S. District Judge B. Lynn Winmill also ordered Fitzgerald to pay $308,912 in restitution to the Internal Revenue Service and perform 100 hours of community service. Fitzgerald pleaded guilty to the charge in February 2011. According to the plea agreement, Fitzgerald filed false tax returns that omitted the income from the sale of his business assets and from the sale of real property. In the plea agreement, Fitzgerald admitted that he failed to report over $1 million in income and evaded payment of taxes totaling $308,912, for tax years 1999

through 2003 and 2005. Fitzgerald used nominee entities to conceal this income. Specifically, he titled the stock in his business and titled his real estate in two entities formed as Nevada corporations sole, which are state entities designed for use by church officials. Fitzgerald called one corporation sole the Office of the First presiding Patriarch (Overseer), a corporation sole, over/for The Fellowship Society (an unincorporated religious Scriptural society, in the nature of DOUGLAS page 2

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DOUGLAS
continued from page 1

Ecclesia). He formed a second similarly named corporation sole over Paradise Flats Society. Fitzgerald used the Fellowship Society and Paradise Flats Society, as purported religious or charitable institutions, to conceal his income from the sale of his business and from the sale of real property. Fitzgerald claimed that the income went to these purported religious entities, despite the fact that he directed the transactions maintained control of the income, and benefitted personally from it. Fitzgerald also admitted that in one instance, he directed the proceeds of a real estate sale to another company, Moscow Combined Investments, and used the proceeds to purchase a house for his daughter. Fitzgerald also directed several hundred thousand dollars to a bank account in his wifes name in the Philippines. He eventually moved to the Philippines but was returned to the United States after he was indicted. In 1998 Fitzgerald was convicted of filing false claims for tax refunds and mail fraud, after which he served 30 months in prison. Paying taxes is a solemn obligation of

citizenship, said Olson. Those who hide income and evade taxes undermine our democracy. Mr. Fitzgerald has now twice been convicted of tax crimes. This significant sentence is appropriate. I commend the IRS enforcement agents and federal prosecutors who patiently pursued justice in this case. The case was investigated by the Internal Revenue Service-Criminal Investigation Division. To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal. The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

Former Alabama Mayor Sentenced to Two Years in Federal Prison for Filing False Tax Returns
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 9:33 AM July 17, 2011

The U.S. Attorneys Office Middle District of Alabama on July 15, 2011 released the following: WASHINGTON John Jackson, the former mayor of White Hall, Ala., was sentenced to two years in prison today, the Department of Justice and the Internal Revenue Service (IRS) announced. According to court documents, Jackson filed false joint 2004, 2005 and 2006 U.S. Individual Income Tax Returns (IRS Forms 1040) that did not report all of the total income earned by Jackson and his spouse. Jackson did not report as income money he took from the city of White Hall and money he diverted from non-profit companies who handled the gaming license for White Hall. Jackson was also sentenced to one year of supervised release, and ordered to pay a $25,000 fine and restitution in the amount of $11,065.

John A. DiCicco, Principal Deputy Assistant Attorney General for the Justice Departments Tax Division and George Beck, U.S. Attorney for the Middle District of Alabama, commended the IRS special agents who investigated this case and Trial Attorney Michael Boteler of the Justice Departments Tax Division, Southern Criminal Enforcement Section and Assistant U.S. Attorney Todd Brown who prosecuted the case. To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal. The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.