02 �� Message from the Chief

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ANNUAL REPORT

Table of Contents

02 �� Message from the Chief

03 �� Organization Chart of IRS-CI

10 �� 2024 Snapshot

11 �� Thwarting Tax Evasion

15 �� Enhancing Field Operations

Through Data and Technology

16 �� Protecting Our Financial System

16 �� Combatting CARES Act Fraud

12 �� Tracing Funds and Illicit Proceeds

17 �� Unraveling Billion-Dollar Abusive

Tax Shelters

12 �� Fighting the Fentanyl War

18 �� Safeguarding Our National Security

13 �� Catching Cyber Criminals

18 �� Preserving Public Trust

14 �� Securing Settlements and Seizures

19 �� Field Office Map

14 �� International Impact

60 �� Appendix

NAVIGATION MENU

Table of Contents

2024 Snapshot

Field Office Map

Appendix

2024 | IRS-CI ANNUAL REPORT

Message

from the Chief

It’s an extraordinary time to be at the

helm of IRS Criminal Investigation

(IRS-CI).

The demands of our workforce are greater than

ever as we see criminals utilize new venues,

revise their techniques, and use emerging

technologies to facilitate financial crimes.

Luckily, as you’ll see in this year’s report, our

special agents are ready and waiting. I often say

that if a criminal ends up on the radar of one of

our agents, they are likely going to jail, and that’s

because our special agents and professional

staff are the best at tracing money trails that

every crime inevitably has. I hope that our hefty

conviction rate — this year at 90% will deter

others from committing similar crimes.

Since 1919, our team has been committed to

investigating tax crimes, and those crimes are

still the focus for our agency. This year alone,

professional enablers behind syndicated

conservation easement schemes pleaded

guilty or were sentenced for their crimes, and

our investigative work secured the first ever

indictment against a defendant for falsely

reporting cryptocurrency gains on a tax return.

We have also been heavily invested in combatting

fraudulent employee retention tax credits tied

to the pandemic. Every tax-related case we

investigate puts us one step closer to closing the

multi-billion-dollar tax gap from U.S. taxpayers

not paying their fair share.

2024 | IRS-CI ANNUAL REPORT

Beyond tax cases, IRS-CI plays an integral role

in uncovering financial trails tied to cybercrime,

healthcare fraud, and money mule schemes. This

year, our investigative work into Binance resulted

in the U.S. government securing the largest

financial settlement in a criminal case. We’ve

also been heavily invested in combatting fentanyl

trafficking, not only by investigating cases,

but also through education and outreach. We

launched the PROTECT event series, where we

meet with members of the financial industry and

law enforcement agencies in cities hardest hit by

the opioid epidemic to discuss what we’re seeing

and how we can work together. This series is part

of the Treasury Department’s Counter-Fentanyl

Strike Force, which I co-chair.

We also saw significant results from our

commitment to the Joint Chiefs of Global Tax

Enforcement (J5). In July, the group published

its first report detailing the global impact the

J5 has had on tax and financial crimes, and this

September, we announced the indictment of a

U.S. defense contractor and his wife, who evaded

taxes on more than $350 million they made

selling jet fuel to the U.S. military.

As we close out fiscal year (FY) 2024, I want

you to know that I am heavily invested in

making IRS-CI the best yet. This FY, we grew

our workforce by nearly 11% — the highest level

in nearly a decade – bringing our workforce to

nearly 3,500 employees encompassing special

agents and professional staff. Heading into FY

2025, our team will continue to focus resources

where we can make the most impact for U.S.

taxpayers. We are committed to staying at the

forefront of technology so our agents can keep

pace or stay a step ahead of criminals and

to leverage our skills to protect the U.S. tax

system. I could not be prouder to lead the IRS-CI

workforce into 2025.

Guy Ficco

Chief, Criminal Investigation

Organization Chart of IRS-CI

Click on an icon to learn more.

STRATEGY

National Criminal Investigation Training Academy, Asset and Knowledge Management,

Assurance and Advisory, Workforce Development, Human Resources, Finance, Project Office

CYBERCRIME AND

FORENSIC SERVICES

Cybercrimes, Digital Forensics,

Center for Science and Design

ADVANCED ANALYTICS AND INNOVATION

Advanced Analytics, Nationally Coordinated Investigations Unit,

Systems and Operational Support, Refund Fraud and Investigative Support,

Innovation, Data Management & Governance

OFFICE OF THE CHIEF

TECHNOLOGY OPERATIONS

Office of Communication,

Commissioner’s Protection Detail,

Equity, Diversity, and Inclusion Office

Development, Field Operations

GLOBAL OPERATIONS

Global Operations Policy & Support, Asset Recovery and Investigative Services,

Financial Crimes, Narcotics and National Security Section, Special Investigative Techniques,

International Field Operations and International Liaison and Strategy

FIELD OPERATIONS

Western Area Field Operations,

Northern Area Field Operations,

Southern Area Field Operations

2024 | IRS-CI ANNUAL REPORT

Organization Chart ofOffice

IRS-CIof the Chief

Click on an icon to learn more.

Chief

Deputy Chief

Guy Ficco is the Chief of IRS Criminal Investigation

(IRS-CI). He is responsible for overseeing a worldwide

staff of nearly 3,500 CI employees, including almost

2,300 special agents in 20 field offices and 14 foreign

countries, who investigate crimes involving tax, money

laundering, public corruption, cyber, ID theft, narcotics,

and terrorist-financing.

Prior to his selection as Chief, Guy served as the Deputy Chief of IRS-CI. Prior to

that, he was the Executive Director of Global Operations, Policy, and Support where

he oversaw the agency’s international footprint as well as much of IRS-CI’s policies

as they relate to investigations. Guy previously served as the Special Agent in

Charge of the Philadelphia Field Office from April 2018 to March 2020, where he led

investigative activities and employees in the states of Pennsylvania and Delaware.

Prior to these assignments, Guy served in a number of CI leadership roles, including

Supervisory Special Agent in the Washington Field Office, Senior Analyst in both

the Financial Crimes and International Operations sections, Assistant Special Agent

in Charge for the Washington Field Office, and Director of Special Investigative

Techniques and acting Deputy Director of IRS-CI’s Strategy section. Guy was also

a Congressional Fellow through the Government Affairs Institute at Georgetown

University, assigned to the Permanent Subcommittee on Investigations (PSI) in the

Senate Homeland Security Committee.

OFFICE OF THE CHIEF

Office of Communication,

Commissioner’s Protection Detail,

Equity, Diversity, and Inclusion Office

Guy has a Bachelor of Business Administration Degree with a concentration in

Accounting from Dominican University in New York. He is a Certified Fraud Examiner

and joined IRS-CI in 1995.

Office of Communication

The Office of Communication aims to elevate IRS-CI’s

profile and deepen stakeholder confidence through

creative, proactive, and impactful communication

strategies to internal and external audiences. These

strategies drive deterrence of tax and financial crimes,

increase awareness of IRS-CI and the work we do,

enhance camaraderie within the workforce, grow

partnerships with professional organizations, and keep

stakeholders informed about IRS-CI’s expertise and

capabilities. In FY 2024, the Office of Communication

oversaw digital media initiatives with more than

96,500 followers/subscribers, launched internal and

external communications campaigns to demonstrate

how IRS-CI employees contribute to the agency’s

mission, conducted media interviews on topics ranging

from cryptocurrency to tax fraud, supported more

than 375 outreach events, and provided briefings

to Capitol Hill staff.

2024 | IRS-CI ANNUAL REPORT

Commissioner’s

Protection Detail

Shea Jones is the (Acting) Deputy Chief of IRS Criminal

Investigation. Prior to his selection as Deputy Chief, Shea was

the Executive

of the

Office

Strategy for

IRS-CI.

National Criminal Investigation

TrainingDirector

Academy,

Asset

and of

Knowledge

Management,

this

role

oversaw

policy,

direction

and

support

Assurance and Advisory, Workforce Development, Human Resources, Finance,ofProject Office

IRS-CI’s Finance, Asset and Knowledge Management, Human

Resources, Workforce Development, Assurance & Advisory,

and National Criminal Investigation Training Academy sections.

STRATEGY

During his tenure, Shea served in various positions ofCYBERCRIME

leadership throughout

IRS-CI,

AND

including Executive Director of International Operations,

where

oversaw

IRS-CI’s

FORENSIC SERVICES

international activities, narcotics, and national security programs; Acting Executive

Cybercrimes,

Digital

Forensics,

Director of Operations, Policy and Support; Deputy Director

of Strategy;

Deputy

Director

Center

for

Science

and

Design

of Technology Operations and Investigative Services; Special Agent in Charge of the St.

Paul Field Office; and Assistant Special Agent in Charge, Las Vegas Field Office.

Shea joined IRS-CI in 2001 as a special agent and is a graduate of Ouachita

Baptist University.

ADVANCED ANALYTICS AND INNOVATION

Advanced Analytics, Nationally Coordinated Investigations Unit,

Systems and Operational Support, Refund Fraud and Investigative Support,

@IRS_CI

irs.gov/ci

Innovation,

Data Management & Governance

IRS Criminal Investigation

Joint Chiefs of Global Tax Enforcement (J5)

IRS-CI

J5 Website

TECHNOLOGY OPERATIONS

Development, Field Operations

Equity, Diversity,

and Inclusion Office

The Commissioner’s Protection Detail is a specially

The Equity, Diversity, and Inclusion Office examines and

trained cadre of IRS-CI special agents who provide

addresses IRS-CI’s employment practices, policies, and

personal security and protectionGLOBAL

to the IRS OPERATIONSprocedures to ensure that every employee attains equal

Commissioner. The detail provides protection of the

opportunity in every facet of IRS-CI’s programs, activities,

Global

Operations

Asset Recovery

and role

Investigative

Services,

Commissioner within the National

Capital

Region Policy & Support,

and services.

This office’s

is to monitor

and evaluate

Financial

Crimes,

Narcotics

and

National

Security

Section,

Special

Investigative

Techniques,

and while in travel status, including foreign and

the organization’s compliance with Equal Employment

International Field Operations and International Liaison and Strategy

domestic travel. In a typical year, this team protects

Opportunity Commission and Treasury guidance to

the Commissioner on approximately 500 protective

eliminate barriers that hinder equal opportunity. The

movements, 20 domestic trips, and two to three

office aims to achieve and sustain a diverse and inclusive

international visits. These special agents are trained

work environment that respects and values all aspects of

in protective service operations with an emphasis on

an employee’s diversity, including ideas (how you think),

OPERATIONS

operational planning, motorcade operations, protective

identity (who you are),FIELD

and information

(what you know).

intelligence, and preventing and responding to attacks.

The office also supports

leadership

with

Western Area Fieldbuilding

Operations,

Area Field

Operations,

Protective operations are a team effort and require

inclusive environmentNorthern

where employees

are

motivated to

Southern

Area

Field

detailed advanced preparations aimed at identifying and

put forth their best effort

and are

vested

in Operations

achieving the

mitigating potential risks, threats, and vulnerabilities.

IRS-CI mission.

Organization

Chart

IRS-CI

Strategy

Click on an icon to learn more.

National Criminal Investigation

Training Academy

The National Criminal Investigation Training

Academy, which is located at the Federal Law

Enforcement Training Center in Brunswick, Georgia,

plays a vital role in training the IRS-CI workforce.

This section develops and delivers the Special Agent

Basic Training program to special agent trainees.

The academy plays a major role in developing and

delivering advanced training for special agents

in areas like use of force, firearms instruction,

defensive tactics, and building entry, and provides

professional education courses for the entire IRS-CI

workforce focusing on emerging trends and issues

affecting law enforcement.

Asset and Knowledge

Management

Asset and Knowledge Management ensures the

IRS-CI workforce has the necessary assets to

accomplish IRS-CI’s enforcement objectives,

OFFICE

OF THE

CHIEF

including

equipment,

vehicles,

badges and

credentials,

radios,

body

armor,

Office of Communication,and real estate.

It also

oversees

IRS-CI’s

Freedom

of Information

Commissioner’s

Protection

Detail,

Equity,

Diversity,

and

Inclusion

Office

Act (FOIA) and records management programs, as

well as an internal knowledge management portal

that permits the IRS-CI workforce to crowdsource

answers to questions to meet enforcement goals.

Assurance and Advisory

Assurance and Advisory independently reviews,

evaluates, and reports on IRS-CI field operations,

program areas, and headquarter sections in a fair

and objective manner to identify risks, emerging

issues, and best practices that affect IRS-CI. The

team assesses IRS-CI’s leadership effectiveness

and ability to manage and mitigate risk and evaluates

IRS-CI operations to ensure investigative alignment

with agency strategy and established policies.

2024 | IRS-CI ANNUAL REPORT

Workforce Development

Workforce Development ensures that IRS-CI recruits

and retains diverse and talented employees to

meet IRS-CI’s evolving enforcement challenges.

This section also helps support and guide special

agents and professional staff in accomplishing

IRS-CI’s mission of deterrence and compliance.

Through Workforce Development, IRS-CI employees

have access to resources to keep them balanced,

engaged, and satisfied in their careers, as well as

apprised of future opportunities within the agency.

STRATEGY

National Criminal Investigation Training Academy, Asset and Knowledge Management,

Assurance and Advisory, Workforce Development, Human Resources, Finance, Project Office

CYBERCRIME AND

FORENSIC SERVICES

Cybercrimes, Digital Forensics,

Center for Science and Design

Human Resources

Human Resources spearheads the development and

implementation of hiring plans for IRS-CI, leveraging

all relevant hiring authorities. Human Resources

executes the Service-wide Human Resources

Program Policy, specifically tailored to address the

distinct needs of IRS-CI. Additionally, they manage

employee recognition, work-life programs, and

performance management. Human Resources also

enforces compliance with federal employment laws.

ADVANCED ANALYTICS AND INNOVATION

Advanced Analytics, Nationally Coordinated Investigations Unit,

Systems and Operational Support, Refund Fraud and Investigative Support,

Innovation, Data Management & Governance

Finance

Finance formulates, develops, and executes

IRS-CI’s financial plan, utilizing sound financial

management, laws, regulations, the Internal

Revenue Manual, and local and IRS/Treasury

policies. The Finance staff implement various

Service-wide programs and processes, develop

policy unique to the needs of IRS-CI, and provide

financial oversight on behalf of IRS-CI.

Project Office

The Project Office manages the implementation of

new processes and program areas. They also serve

as a valuable resource for significant improvements

to existing processes. The Project Office manages

many of the contracts that IRS-CI utilizes to

accomplish its mission. They often collaborate across

IRS-CI and the IRS with other stakeholders.

TECHNOLOGY OPERATIONS

Development, Field Operations

GLOBAL OPERATIONS

Global Operations Policy & Support, Asset Recovery and Investigative Services,

Financial Crimes, Narcotics and National Security Section, Special Investigative Techniques,

International Field Operations and International Liaison and Strategy

FIELD OPERATIONS

Western Area Field Operations,

Northern Area Field Operations,

Southern Area Field Operations

Cybercrime

Organization Chart

of IRS-CI and

Forensic Services

Click on an icon to learn more.

Cybercrimes

Many aspects of our lives have grown increasingly

dependent on technology, and the same holds true

for criminals’ activities. Nearly every case IRS-CI

investigates involves the use of the internet, digital

payments, and computer devices. The agency has two

Cybercrimes Units (CCU) – one positioned in the Los

Angeles Field Office and the other in the Washington,

D.C. Field Office, and they focus on multijurisdictional

investigations posing the most significant threats to

the U.S. tax and financial systems.

IRS-CI’s Cybercrimes headquarters component

oversees the agency’s involvement in cyber-related

criminal investigations and provides tools, resources,

and training to assist special agents around the globe

with cyber investigations. This includes tracking

illicit finance and mitigating national security risks

posed by cybercrimes, as well as tracking digital

assets used to facilitate narcotics trafficking, money

laundering, terrorism financing, and more.

OFFICE OF THE CHIEF

Office of Communication,

Commissioner’s Protection Detail,

Equity, Diversity, and Inclusion Office

Digital Forensics

STRATEGY

National Criminal Investigation Training Academy, Asset and Knowledge Management,

Assurance and Advisory, Workforce Development, Human Resources, Finance, Project Office

Digital Forensics consists of Digital Forensic Field

Services and the Digital Forensic Lab. Digital Forensic

Field Services consists of seven groups of field

forensic examiners nationwide that provide advanced

CYBERCRIME AND

forensic support to special agents working criminal

investigations. The lab supports field examiners by

FORENSIC SERVICES

providing expertise for more complex scenarios,

Cybercrimes, Digital Forensics,

digital forensic research and development, forensic

Center for Science and Design

training, acquisition of forensic tools and solutions,

and development of forensic processes to keep pace

with technological advances.

Center for Science and Design

ADVANCED ANALYTICS AND INNOVATION

The Center for Science and Design consists of

Advanced Analytics, Nationally Coordinated Investigations Unit,

three sections: Scientific Services, Multimedia and

Systems and Operational Support, Refund Fraud and Investigative Support,

Deception Detection, and Trial and Design Services.

Innovation, Data Management & Governance

These sections forensically process and analyze a

wide variety of evidence, deliver expert courtroom

testimony, produce visual aids to simplify the

presentation of complex evidence, provide electronic

enhancements to audio, video, and images introduced

TECHNOLOGY OPERATIONS

as evidence, and assist with polygraph examinations.

Development, Field Operations

GLOBAL OPERATIONS

Global Operations Policy & Support, Asset Recovery and Investigative Services,

Financial Crimes, Narcotics and National Security Section, Special Investigative Techniques,

International Field Operations and International Liaison and Strategy

FIELD OPERATIONS

Western Area Field Operations,

Northern Area Field Operations,

Southern Area Field Operations

2024 | IRS-CI ANNUAL REPORT

Organization Chart of IRS-CI

Advanced Analytics

and Innovation

Click on an icon to learn more.

Advanced Analytics

Advanced Analytics leverages big data and advanced

analytical capabilities to make IRS-CI more efficient.

The team analyzes data about IRS-CI operations and

helps generate leads for field agents by developing

queries that identify potential fraud among tax

return, tax administration, and Bank Secrecy Act

data. In FY 2024, IRS-CI Advanced Analytics

completed over 135 lead generation projects,

supported 14 Nationally Coordinated Investigations

Unit initiatives, and delivered over 5,500 business

reports. The team also strives to raise IRS-CI’s

overall analytical acumen by conducting trainings

and sharing data analytic capabilities across IRS-CI.

Nationally Coordinated

Investigations

Unit

OFFICE OF THE CHIEF

The Nationally Coordinated Investigations Unit

Office of Communication,

usesCommissioner’s

skilled staff, bigProtection

data, andDetail,

strategic threat

assessments

to identify

individuals

committing tax

Equity, Diversity,

and Inclusion

Office

crimes. In FY 2024, the unit made 292 investigative

referrals to IRS-CI field offices.

Systems and

Operational Support

Systems and Operational Support uses systems

and partners with business units at IRS to identify

emerging trends and quality investigative leads,

assists with court testimony, and helps detect,

prevent and recover funds from fraudulent tax

refunds. It also supports other national programs

including the Court Witness Program, the Controls

and Unpostables Program, and the Electronic Filing

Suitability Program.

2024 | IRS-CI ANNUAL REPORT

STRATEGY

National Criminal Investigation Training Academy, Asset and Knowledge Management,

Assurance and Advisory, Workforce Development, Human Resources, Finance, Project Office

Refund Fraud and

Investigative Support

CYBERCRIME AND

FORENSIC SERVICES

Refund Fraud and Investigative Support identifies

emerging trends and schemes related to refund fraud

and identity theft to support high-impact criminal tax

and related financial investigations in IRS-CI field

offices across the country.

Cybercrimes, Digital Forensics,

Center for Science and Design

Innovation

Innovation helps IRS-CI overcome complex

challenges by sourcing, tracking, coordinating,

analyzing, and enabling innovative research,

process, and technology improvements to solve

critical needs and improve efficiencies. In FY 2024,

Innovation supported 105 projects. These projects

leveraged technology, as well as process and

policy improvements to deliver increased efficiency

throughout IRS-CI.

ADVANCED ANALYTICS AND INNOVATION

Advanced Analytics, Nationally Coordinated Investigations Unit,

Systems and Operational Support, Refund Fraud and Investigative Support,

Innovation, Data Management & Governance

TECHNOLOGY OPERATIONS

Data Management

& Governance

Data Management and Governance continuously

seeks new data sources and converts this data into

an actionable format for IRS-CI special agents. The

team digitizes records through the Data Processing

Center and leverages technology and algorithms to

filter large data sets. This enhances IRS-CI’s ability

to identify fraud and dedicate resources to the most

impactful criminal investigations.

Development, Field Operations

GLOBAL OPERATIONS

Global Operations Policy & Support, Asset Recovery and Investigative Services,

Financial Crimes, Narcotics and National Security Section, Special Investigative Techniques,

International Field Operations and International Liaison and Strategy

FIELD OPERATIONS

Western Area Field Operations,

Northern Area Field Operations,

Southern Area Field Operations

Organization Chart of IRS-CI

Click on an icon to learn more.

STRATEGY

National Criminal Investigation Training Academy, Asset and Knowledge Management,

Assurance and Advisory, Workforce Development, Human Resources, Finance, Project Office

Technology Operations

Development

OFFICE OF THE CHIEF

Office of Communication,

Commissioner’s Protection Detail,

Equity, Diversity, and Inclusion Office

Development includes branches that work together

to deliver and maintain IRS-CI’s infrastructure

and technical applications. The Business Systems

Development Branch identifies and manages the

delivery of business improvement and IT projects in

support of the IRS-CI vision and strategic mission.

This branch also oversees many IRS-CI applications,

including LCA/Palantir, CIMIS, AFTRAK, and Diary.

The Portfolio Management, Acquisitions, and

Contracts Branch oversees and governs IT projects

and contracts. The Technical Operations Center

oversees IRS-CI’s infrastructure and provides core

IT services, such as remote and in-office network

capabilities, application and server administration,

enterprise computing center management, and core

smartphone and workstation management.

Field Operations

Field Operations supports IRS-CI by securing,

delivering, and providing technical support of

the agency’s IT equipment and services. The

Cybersecurity Team oversees security risk

CYBERCRIME AND

FORENSIC SERVICES

Cybercrimes, Digital Forensics,

Center for Science and Design

management, security engineering, and security

operations, in the form of continuous monitoring

of IRS-CI’s IT systems and resources. This teamADVANCED ANALYTICS AND INNOVATION

also provides security risk analysis and advisory

Advanced Analytics, Nationally Coordinated Investigations Unit,

services, disaster recovery support, and security

Systems and Operational Support, Refund Fraud and Investigative Support,

policy management and guidance, and leads and

Innovation, Data Management & Governance

facilitates incident response, insider threat, and data

spill cleanup processes. Client Management Support

Services oversees a portfolio of client hardware

and software technologies that enable and enhance

IRS-CI’s business capabilities. This group governs

TECHNOLOGY OPERATIONS

the development and maintenance of IRS-CI client

Development, Field Operations

hardware and software configuration standards

and profiles. From client image development and

software packaging to license management, testing

distribution, inventory, oversight, and standards

for end-user hardware and software. User Support

provides direct IT support for the field offices,

headquarters, and international sites through the

GLOBAL OPERATIONS

IRS-CI Service Desk and field service computer

operations administrators, by providing IRS-CI Global Operations Policy & Support, Asset Recovery and Investigative Services,

users with access to the network, computers, Financial Crimes, Narcotics and National Security Section, Special Investigative Techniques,

International Field Operations and International Liaison and Strategy

mobile devices (phones), first-level technical issue

resolution, and direct support for all initial hardware,

software, and telecommunication questions.

FIELD OPERATIONS

Western Area Field Operations,

Northern Area Field Operations,

Southern Area Field Operations

2024 | IRS-CI ANNUAL REPORT

Global Operations

Organization

Chart of IRS-CI

Global

Operations

Click on

an icon

to learn more.

Policy & Support

Global Operations Policy and Support is the largest

IRS-CI division, consisting of Asset Recovery

and Investigative Services, Financial Crimes, the

Narcotics and National Security Section, Special

Investigative Techniques, International Field

Operations, and International Liaison and Strategy.

Asset Recovery and

Investigative Services

Asset Recovery and Investigative Services uses

forfeiture authority as an investigative tool to disrupt

and dismantle criminal enterprises. The program

deprives criminals of property used in, or acquired

through, illegal activities. Following forfeiture of

seized assets, forfeited funds are routed to the

Treasury Forfeiture Fund managed by the Treasury

Executive Office for Asset Forfeiture. Forfeited funds

are often returned to victims of criminal activity and

are also used to reimburse law enforcement agencies

for expenses like enhanced training, equipment,

and costs associated with conducting significant

OFFICE OF THE CHIEF

investigations. In addition, the fund shares a portion

of forfeited

monies

with other federal, state, and

Office

of Communication,

Commissioner’s

Protection

Detail,

local

law enforcement

agencies.

Equity, Diversity, and Inclusion Office

Financial Crimes

Financial Crimes provides policy guidance and

operational support to field offices on tax crimes,

illegal source financial crimes, and money laundering

violations. It oversees a host of investigative priorities,

including abusive tax schemes, fraud referrals, and

Bank Secrecy Act violations. In addition, in compliance

with an Executive Order, Financial Crimes recently

implemented IRS-CI’s Body Worn Camera Program.

Narcotics and National

Security Section

The Narcotics and National Security Section contributes

to the success of U.S. national security programs by

investigating the finances of transnational criminal

organizations involved in narcotics trafficking, human

2024 | IRS-CI ANNUAL REPORT

trafficking, terrorism financing, economic espionage,

and money laundering. Liaison officers assigned to

the section support a government-wide approach to

address national security threats. The unit also focuses

heavily on narcotics and financial investigations related

to high-priority targets identified by Organized Crime

Drug Enforcement Task Forces (OCDETF).

STRATEGY

National Criminal Investigation Training Academy, Asset and Knowledge Management,

Assurance and Advisory, Workforce Development, Human Resources, Finance, Project Office

Special Investigative

Techniques

Special Investigative Techniques provides oversight

of IRS-CI’s undercover activities. CI maintains a cadre

of undercover agents that utilize sophisticated means

to initiate contact with individuals perpetrating tax

crimes and other financial crimes, to gain evidence

needed for prosecution of those crimes. This section

provides training to those involved in the undercover

program and support to field offices in their planning

and approval of undercover activities.

International Field

Operations and International

Liaison and Strategy

International Field Operations oversees IRS-CI’s

international footprint, including overseeing staff

located at 14 attaché posts at embassies or consular

offices in Australia, the Bahamas, Barbados, Canada,

China, Colombia, England, Germany, the Netherlands,

Mexico, Panama, Singapore, and the United Arab

Emirates. IRS-CI attachés build partnerships and

investigate financial crimes with countries in their

areas of responsibility. IRS-CI’s International Training

Team often works with attachés to deliver trainings

to law enforcement counterparts, so they have the

necessary tools to combat financial crimes. This

year, IRS-CI added a Caribbean attaché post in

Nassau, Bahamas, as well as a Cyber Attaché Post in

Singapore, to expand IRS-CI’s global presence.

IRS-CI also has domestic specialty groups in the

United States that carry out our international mission,

including cybercrime units, the International Tax and

Financial Crimes Group, the Global Illicit Financial

Team, and the J5 Group, and our headquarters staff

work regularly with foreign embassy personnel based

in Washington, D.C.

CYBERCRIME AND

FORENSIC SERVICES

Cybercrimes, Digital Forensics,

Center for Science and Design

ADVANCED ANALYTICS AND INNOVATION

Advanced Analytics, Nationally Coordinated Investigations Unit,

Systems and Operational Support, Refund Fraud and Investigative Support,

Innovation, Data Management & Governance

TECHNOLOGY OPERATIONS

Development, Field Operations

GLOBAL OPERATIONS

Global Operations Policy & Support, Asset Recovery and Investigative Services,

Financial Crimes, Narcotics and National Security Section, Special Investigative Techniques,

International Field Operations and International Liaison and Strategy

FIELD OPERATIONS

Western Area Field Operations,

Northern Area Field Operations,

Southern Area Field Operations

STAFFING***

* 1.6% UNCATEGORIZED

*** IRS-CI’S STAFFING LEVELS ARE BY FISCAL YEAR AND REFLECT AN ACTUAL COUNT

OF EMPLOYEES BASED ON THE EMPLOYEE MASTER DATABASE AS OF PP19.

1154

3,015

‘10

‘22

‘23

‘24

3,000

WARRANTS EXECUTED

1794

REFERRED FOR

PROSECUTION

2,000

INVESTIGATION SOURCES**

** 1% UNCATEGORIZED

90%

26%

U.S. ATTORNEY’S

CONVICTION RATE

1571

CONVICTIONS

1.47

PETABYTES OF

DIGITAL DATA

OFFICE

FinCEN

DATA

1,000

IRS-CI

STATE/

LOCAL

GOV’T

PUBLIC

27%

OTHER FEDERAL

AGENCIES

IRS

CIVIL

2024 | IRS-CI ANNUAL REPORT

3,138

1,184

11.6

NARCOTICS

3,474

2,290

69.2

TAX

994

OTHER IDENTIFIED

FINANCIAL CRIMES

PROFESSIONAL STAFF

2,144

$7.03B

4,000

SPECIAL AGENTS

938

17.6

NON-TAX

4,017

2,077

TAX FRAUD IDENTIFIED

1,256

$2.12B

DIRECT INVESTIGATIVE TIME SPENT*

2,761

2024

Snapshot

FISCAL YEAR

Thwarting Tax Evasion

IRS-CI is the only federal law enforcement agency with the jurisdiction to

investigate federal tax crimes.

IRS-CI special agents and professional staff

investigate the most egregious tax cheats and

partner with the Department of Justice to

prosecute violations of federal law. Every few

years, the IRS estimates the tax gap, the amount

of taxes paid compared to what should have been

paid. In a report published in October 2024, the

IRS estimated the tax gap at $696 billion for the

2022 tax year.

IRS-CI plays an important part in closing the tax

gap by investigating impactful criminal cases

to discourage other taxpayers who may be

interested in evading taxes or committing other

similar criminal violations. We focus our efforts

in three main areas including traditional tax

crimes, tax-related financial crimes (i.e. money

laundering, public corruption, counterterrorism,

etc.), and narcotics-related financial crimes.

These cases may include business owners

evading income taxes or fraudsters and drug

traffickers not paying tax on proceeds from their

criminal activities. In the eyes of the tax code, all

income from whatever source derived is taxable,

even if it is from criminal activity.

Often, we use special investigative techniques

like undercover operations to gather evidence

of a crime. These techniques were integral in a

recent case out of Virginia where undercover

agents obtained evidence that a restaurant owner

was maintaining two sets of financial books and

records tied to his business; this evidence resulted

in him pleading guilty to tax evasion charges and

being sentenced to 14 months in prison. Field

agents often rely heavily on special investigative

techniques to strengthen existing cases and

identify new targets. In FY 2024, we conducted

474 undercover operations.

Like the proceeds from a business, money

obtained through fraud or embezzlement is also

taxable. A recent investigation out of the Houston

Field Office resulted in a U.S. Army employee

being convicted and sentenced to 180 months in

prison for filing false tax returns. Janet Yamanaka

Mello worked as a financial program manager for

the Army and used her position to fraudulently

secure over $108 million in funds intended for the

care of children. She then used that money to fund

her lavish lifestyle, where she purchased houses,

more than 80 vehicles, and over 1,500 pieces of

jewelry. She was ordered to pay $31.8 million in

restitution to the IRS.

Our tax investigations continue to evolve as we

see more and more taxpayers engaging in the use

of cryptocurrency. In the first ever indictment

solely for failing to report or the underreporting

of cryptocurrency earnings and gains on their tax

return, Frank Ahlgren III was indicted in February

of 2024 for filing false tax returns related to the

sale of $4 million in bitcoin which resulted in

substantial capital gains. He allegedly used the

proceeds from the sale to purchase a residence

and filed a false 2017 federal tax return that

inflated the price he originally paid for the bitcoin,

underreporting his capital gain. He also failed to

report sales of bitcoin in 2018 and 2019 of more

than $650,000 on his tax returns. His sentencing

was scheduled for December of 2024.

In FY 2024, IRS-CI identified over $2.1 billion

in tax fraud and saw 615 subjects sentenced

to an average of 27 months in federal prison

for violating U.S. tax laws. While lengthy prison

terms can serve as a deterrent to committing

tax fraud, most subjects are also required to pay

restitution to the IRS for taxes owed. Restitution

can amount to millions of dollars in some cases.

TAX CRIMES

1373

INVESTIGATIONS

INITIATED

2024 | IRS-CI ANNUAL REPORT

674

PROSECUTIONS

RECOMMENDED

615

DEFENDANTS

SENTENCED

Tracing Funds and Illicit Proceeds

Fighting the Fentanyl War

Money Laundering

While IRS-CI is the only federal law enforcement

agency with jurisdiction over federal tax crimes,

we are often called on to investigate other

financial crimes due to our financial forensic

capabilities and our financial expertise. IRS-CI is

a key player in money laundering investigations,

where criminals disguise the illicit nature of

their funds by making them appear as legitimate

sources. In FY 2024, IRS-CI special agents spent

roughly 29% of their time investigating non-tax

crimes involving suspected money laundering

violations including drug trafficking, fraud

schemes, and public corruption, and identified

over $7 billion in fraud from non-tax crimes.

Money laundering has become more

sophisticated as technology becomes more

advanced. Criminal enterprises often rely on

professional enablers and third-party money

launderers to help facilitate the transactions.

Third-party facilitators place illicit proceeds

into businesses, financial institutions, brokerage

firms, and physical assets to conceal the nature

of the illicit profits. By utilizing data analytics and

focusing on complicit Money Service Businesses

(MSB), IRS-CI has developed high impact

third-party money laundering, referred to as

3PML, investigations across the United States.

Jesus Vazquez Padilla, of Tijuana, Mexico,

operated an illegal unlicensed money

transmitting business and laundered the

proceeds of drug sales, using 22 shell

corporations and 85 corporate bank accounts

at various U.S. banks. Vazquez Padilla offered

money transmitting services to the public for

a fee. He deposited cash from his customers

to corporate bank accounts held at financial

institutions throughout the United States, then

transferred money to Mexico on behalf of the

third parties. In total, Vazquez Padilla’s business

deposited more than $42 million into the U.S.

financial system, and most of those funds were

transferred to third-party bank accounts in

Mexico. In February 2024, he was sentenced to

40 months in prison for his crimes.

Modern-day technologically has also increased

criminal activity in global financial crimes.

Complex webs of offshore holdings and

anonymous transactions aid criminals in

laundering money through a wide variety of

institutions, including banks, money transmitters,

stock brokerage houses, casinos, and virtual

currency exchanges.

In January 2024, Virak Prum, a leader of the

Massachusetts-based gang One Family Clique

(OFC), was sentenced to 96 months in prison

for conspiring with fellow OFC gang members

to launder millions of dollars in drug proceeds

through casinos in Canada. Prum used the U.S.

Postal Service to receive shipments of illegal

narcotics and shipped cash proceeds to the

sources of supply.

In December 2023, the U.S. Department of

Treasury announced the launch of the CounterFentanyl Strike Force to combat the trafficking

of illicit fentanyl. The strike force is jointly led

by Treasury’s Office of Terrorism and Financial

Intelligence (TFI) and IRS-CI. Under the strike

force, IRS-CI leverages Treasury’s expertise

from various Treasury components to investigate

financial crimes, counter illicit finance and

disrupt transnational criminal organizations that

traffic these drugs. Under the PROTECT series,

IRS-CI advances Treasury’s work with the private

sector and law enforcement partners through

collaborative FinCEN Exchanges that allow the

private sector to provide vital leads and information

so law enforcement can identify risks and take

action to combat illicit fentanyl trafficking.

federal prison for conspiring to distribute fentanyl,

possession with intent to distribute fentanyl, and

money laundering. The Rodriguez drug trafficking

organization distributed fentanyl and a mixture of

fentanyl/heroin in and around Oneida County, New

York and elsewhere. Special Agents seized over

13 kilograms of fentanyl during the investigation.

Seven additional members of the organization were

sentenced from between 3.5 to 10 years in prison.

Our agents are members of Organized Crime Drug

Enforcement Task Forces (OCDETF), using their

specialized financial investigative skills to combat

money laundering and drug trafficking by tracing

profits from illegal activity back to criminals who

are funding the U.S. fentanyl crisis. We spent

11.6% percent of our investigative time in fiscal

year 2024 investigating narcotics related cases.

Lastly, Branea Bryant was sentenced to more

than 24 years for fentanyl trafficking conspiracy

and money laundering. IRS-CI’s investigation

revealed Bryant’s company, ADF3 Investments,

owned several high-end vehicles connected to

a drug conspiracy, including two Range Rovers

purchased with drug money and a Jaguar F-Type

used to facilitate drug deals. ADF3 did not file any

state or federal tax returns nor appear to have any

legitimate business activity.

Ivan Rodriguez Sr. and his son, Ivan Rodriguez Jr.

are behind one of the criminal organizations fueling

the fentanyl trade. They both received 10 years in

NON-TAX CRIMES

1294

INVESTIGATIONS

INITIATED

2024 | IRS-CI ANNUAL REPORT

1120

PROSECUTIONS

RECOMMENDED

Similarly, Jonathan King, the leader of a fentanyl

trafficking conspiracy received a 10-year sentence.

He distributed and possessed enough fentanyl

to create more than two million potentially lethal

doses of the drug. King arranged for the sale and

delivery of thousands of fentanyl-laced pills in

Rhode Island.

967

DEFENDANTS

SENTENCED

Catching Cyber Criminals

Crimes investigated by IRS-CI increasingly include a cyber component, and we

continue to be a leader in this realm, both domestically and across the globe.

Whether the crime relies on the internet to

effectuate the scheme, or whether it drastically

increases the scale of the scheme by using

computers, computer networks, and other forms

of communication, IRS-CI is on the cutting edge of

cybercrime investigations. Our cybercrime cases

are often some of our largest and most complex

cases, which often come with lengthy prison

sentences and some of the largest forfeiture and

seizure judgments in our nation’s history.

Cybercrime investigations are a priority for

IRS-CI, and convictions often result in some of

our most impactful sentences, with an average

of 61 months imprisonment. In FY 2024, IRS-CI

initiated 111 cyber-related investigations,

seized more than $925,728,496 in assets, and

recommended 72 investigations for prosecution.

Notable indictments this fiscal year include

“Bitcoin Jesus,” an early investor in bitcoin

who allegedly concealed information from his

accountant causing at least a $48 million tax

loss to the IRS, and three crypto fraudsters, who

allegedly defrauded investors of approximately

$1.89 billion by fraudulently promising

substantial returns from cryptocurrency mining

operations that did not exist. In November 2023,

IRS-CI and the U.S. Treasury announced the

largest settlement in our nation’s history against

the world’s largest crypto exchange, Binance

for violating U.S anti-money laundering and

sanctions laws.

In January 2024, Mark Scott, a former law

partner in a prominent international firm, was

sentenced to 10 years in prison for laundering

$400 million of OneCoin proceeds. Much

like a “traditional” Ponzi-scheme, OneCoin

was deemed the largest fraud scheme ever

perpetrated, selling fraudulent cryptocurrency

to millions of victims around the world. OneCoin

leadership marketed its fake cryptocurrency

through a global multilevel marketing network.

In early 2016, Scott was introduced to Ruja

Ignatova of Bulgaria, who was the one of the

founders of OneCoin. Scott formed a series

of fake investment funds overseas, disguised

incoming transfers (OneCoin fraud proceeds) as

investments from wealthy European families,

then layered the funds through various offshore

accounts to conceal their origin. He eventually,

returned the funds to Ignatova and other

associates. Scott earned more than $50 million

for his money laundering services, which he used

to purchase a 57-foot yacht, a Ferrari, several

Porsches, and a $3 million seaside home in

Cape Cod. In addition to his prison sentence,

Scott was ordered to forfeit $392.9 million, his

yacht, Porsches, and four real estate properties.

Ignatova also known as the Cryptoqueen, went

into hiding in 2017 and remains a U.S. fugitive.

to sell controlled substances like fentanyl,

ecstasy, and ketamine. His customers paid with

cryptocurrency, and he utilized the U.S. mail

and other shipping services to send the illicit

narcotics from Europe to the United States. Singh

established a drug enterprise that laundered

millions in cryptocurrency accounts valued at

approximately $150 million. He was arrested

in London and extradited to the United States,

where he was sentenced to five years in prison

and ordered to forfeit his illicit proceeds.

We have two Cybercrimes Units, located in Los

Angeles and Washington, D.C., where specially

trained agents, professional staff, and expert

contractors work exclusively on cybercrime cases.

In addition, IRS-CI deployed cyber attachés

to overseas posts in FY 2023, as part of a pilot

program to respond to the increasing need for

support on international cyber investigations.

Cyber attachés are strategically positioned

on four continents to support cyber-related

investigations, build relationships, train foreign

partners, and identify investigative leads for

criminal investigations. This fiscal year, we added a

permanent cyber attaché post in Singapore based

on the the success of the pilot program there.

Banmeet Singh from India created vendor

marketing sites on dark web marketplaces,

such as Silk Road, Alpha Bay, and others,

CYBER CRIMES

CONVICTIONS

2024 | IRS-CI ANNUAL REPORT

61 Mos

AVERAGE SENTENCING

>$925M

ASSETS SEIZED

Securing

Settlements

and Seizures

Asset forfeiture is an investigative tool to dismantle criminal

organizations and prevent fraudsters from reaping the benefits

of their illicit activity. Illicit proceeds seized are forfeited to the

Treasury Forfeiture Fund, which is managed by the Treasury

Executive Office for Asset Forfeiture (TEOAF). Forfeited funds

are returned to the victims of crime whenever possible, while the

remaining proceeds fund investigative and enforcement efforts for

partner agencies, including those from state and local governments.

IRS-CI led the criminal investigation into Binance, the world’s

largest cryptocurrency exchange, which admitted to prioritizing

growth of the company and profits over compliance with U.S.

anti-money laundering laws. Binance started in 2017 and quickly

became the largest cryptocurrency exchange in the world with their

largest customer base in the United States. Binance was required

to register with the U.S. government as a money services business

but chose not to comply with U.S. law and failed to implement

anti-money laundering procedures. They also allowed U.S.

customers to conduct transactions with customers in sanctioned

jurisdictions, in violation of the IEEPA. Binance settled with the U.S.

Treasury for a penalty of over $4 billion.

Due to Binance’s failure to implement an effective anti-money

laundering program, criminals used Binance’s cryptocurrency

exchange to disguise the source and ownership of illicit proceeds,

conduct transactions with known terrorist organizations and transfer

proceeds of darknet market transactions. Additionally, Binance

assisted U.S. customers in evading U.S. Sanctions of Iran. Between

January 2018 and May 2022, Binance willfully caused over $898

million in trades between U.S. users and Iranian-based users.

In FY 2024, we saw forfeitures ordered in a variety of cases,

including a $9.6 million forfeiture where a Brooklyn man laundered

proceeds from a healthcare scheme. He concealed over $18

million of criminal proceeds by funneling money through several

shell companies, including sham pharmacy wholesale companies

designed to look like legitimate wholesalers. The funds were sent to

companies in China for distribution to individuals in Uzbekistan, and

the defendant received some of these funds in cash.

Daniel Hurt was ordered to forfeit $30 million of proceeds from the

sale of a yacht he purchased from kickbacks and proceeds of his

healthcare schemes. During the conspiracy, he sent thousands of

medically unnecessary prescriptions to a co-conspirator pharmacy,

which billed patients’ insurance plans thousands of dollars for the

compounded medications. Once the pharmacy received payment

for the prescriptions, the pharmacy paid a kickback to Hurt.

During FY 2024, IRS-CI seized more than $1.2 billion in assets

and forfeited approximately $196.4 million in ill-gotten proceeds.

In addition, more than $1 billion was refunded as part of our asset

recovery efforts.

2024 | IRS-CI ANNUAL REPORT

International

Impact

IRS-CI’s international footprint plays an integral role in ensuring the

agency can combat criminal activity on a global level. Special agents

based in the United States work with attachés and professional staff

stationed overseas to gather and share information and conduct

training for our foreign partners.

IRS-CI remains heavily involved with the Joint Chiefs of Global

Tax Enforcement (J5), which was launched in 2018 and consists

of the five chiefs of the tax enforcement bureaus of Australia,

Canada, the Netherlands, the United Kingdom, and the United

States. This year, the group published their first report detailing

the successes of the partnership. The report highlights significant

accomplishments, including lead generation, seizures of millions

of dollars in criminal proceeds, and the issuance of advisory

notices to financial institutions. As a result of the J5 partnership,

three individuals were charged in the United States for their roles

in a $1.89 billion cryptocurrency scheme that involved alleged

false representations made to investors in a cryptocurrency mining

operation that did not exist.

Operation Jetsetter emerged as one of the J5’s important

successes. U.S. Department of Defense contractor, Douglas

Edelman, and his wife, Delphine Le Dain, engaged in a decades-long

scheme to defraud the United States and evade taxes on more than

$350 million in income Edelman made as a defense contractor

during U.S. post-9/11 military efforts. From 2003 to 2020, Edelman

allegedly owned 50% of a defense contracting business that

received more than $7 billion in government contracts to provide jet

fuel to U.S. troops in the Middle East. According to the indictment,

Edelman concealed his profits using foreign bank accounts, false

documents, and false claims that Le Dain, a French citizen residing

abroad, did not have U.S. tax obligations and was the founder/owner

of the contracting business. Edelman and Le Dain are charged

with conspiring to defraud the United States and 15 counts of tax

evasion. Edelman is also charged with two counts of making false

statements to the United States and 12 counts of willfully violating

his foreign bank account reporting obligations.

A large part of IRS-CI’s role abroad includes providing trainings for

international partners. During FY 2024, our international training

team delivered more than 30 trainings to over 930 participants

from more than 70 countries, playing a critical role in maintaining

foreign partnerships.

IRS-CI also has specialty groups that carry out our international

mission, including Cybercrime Units, the International Tax and

Financial Crimes Group, the Global Illicit Financial Team, and the

J5 Group. IRS-CI currently has 14 overseas posts at embassies

or consular offices around the world. This year, IRS-CI added a

Caribbean attaché post in Nassau, Bahamas, as well as a cyber

attaché post in Singapore, to expand our global presence.

Enhancing Field Operations

Through Data and Technology

The Advanced Analytics and Innovation section is a critical component of

IRS-CI, transforming how financial crimes are detected, investigated, and prosecuted.

Advanced Analytics and Information harnesses

the power of data analytics, machine learning,

and emerging technologies to enhance IRS-CI’s

investigative capabilities, providing tools and

methodologies that help the agency stay ahead

of increasingly complex financial crimes. As the

digital landscape evolves, AAI’s role within IRS-CI

will only grow, making it a continued indispensable

asset in the fight against financial crime.

The section’s primary function is to develop and

deploy advanced algorithms to analyze vast

amounts of data and to uncover patterns and

anomalies indicative of criminal activity. This is

particularly important for investigating tax fraud,

money laundering, and cybercrimes, where illicit

activities are often concealed among legitimate

financial transactions. AAI also integrates new

technologies, such as machine learning, into

IRS-CI’s operations, enabling agents to trace

illicit funds, identify perpetrators, and build

stronger cases more effectively.

The Nationally Coordinated Investigations

Unit uses data mining and analysis to identify

potential targets from a variety of potential tax

evasion schemes. These leads are provided to

the field for further investigation. In FY 2024,

the NCIU provided 292 referrals to field offices

around the country.

In one example, the NCIU identified a Texas man

who evaded paying income taxes on over $4.75

million income. Peter Tignini worked in the United

Arab Emirates and Qatar and reported income

of approximately $100,000 per year, which is

near or below the amount that U.S. citizens who

live and work abroad can exclude from their

taxable income on their U.S. tax returns. He was

sentenced to 41 months in prison, three years

of supervised release, and was ordered to pay

nearly $1.17 million in restitution.

Field-based special agents also rely on the

digital forensics team, part of the agency’s

Cyber and Forensic Services Section, to process

data and analyze digital evidence. These teams

consist of forensic scientists, special agent

computer investigative specialists, and computer

investigative forensic analysts. They employ

cutting-edge tools and techniques to uncover

digital evidence of financial crimes, a critical

capability as crimes increasingly involve online

transactions, cryptocurrency, and cyber fraud.

Our digital forensic specialists accompany field

agents at search warrants and specialize in

the preservation of electronic evidence. They

meticulously document the scene, maintain

chain-of-custody logs for every piece of electronic

evidence, and follow strict protocols to ensure

data integrity. In FY 2024, IRS-CI’s team has

responded to approximately 700 requests and

seized 1.47 petabytes of data from over 3,000

computer devices in support of investigations.

In the Michael J. Miske Jr. investigation, an

IRS-CI digital forensics special agent analyzed

terabytes of data, including hundreds of

emails, and conducted extensive timeline

and metadata analysis to uncover evidence of

fraudulent documents that assisted in concealing

a racketeering enterprise. An IRS-CI digital

forensic special agent testified at trial, which

resulted in Miske’s conviction for racketeering

conspiracy, murder, and 11 other felony charges.

In the Binance investigation, one of the largest

cases in the agency’s history, digital forensic

specialists from around the country participated

in search warrants, processed digital evidence,

and assisted IRS-CI’s Los Angeles-based

Western cybercrimes unit to investigate the

case. Once again, our digital forensics team

played an integral role in the investigation,

including the seizure and imaging of a laptop

and mobile phone and the review of emails and

other digital evidence.

STAFFING

1184

PROFESSIONAL STAFF

2024 | IRS-CI ANNUAL REPORT

2290

SPECIAL AGENTS

3474

TOTAL STAFFING

Protecting

Our

Financial

System

In 1970, the Bank Secrecy Act (BSA) was enacted to fight money

laundering in the United States. The BSA authorizes the U.S. Treasury

Department to require financial institutions to keep records of cash

transactions, to report suspicious activity that may signify crimes

such as money laundering, tax evasion, or other criminal activity, and

to gather information about their customers to prevent our financial

system from being exploited for criminal purposes.

IRS-CI is one of the largest consumers of BSA data each year,

and we use that information to identify new investigative leads

and to uncovering previously unknown assets or bank accounts

in current cases.

Circumventing BSA regulations allows criminals to disguise

proceeds from their criminal activities or to commit tax evasion.

We help secure the nation’s financial system by holding individuals

accountable for intentionally violating BSA regulations. A business

owner was convicted in July 2024 for a multi-year scheme, where

he operated an unlicensed money services business out of a lumber

company. He earned millions by cashing “off-the-books” payroll

checks for employees. These “customers” paid a higher fee knowing

he would not file the appropriate reports with FinCEN, which would

allow their activities to go unnoticed.

Casinos are also subject to many of the same provisions under

the BSA. The former president of MGM Grand Casino in Las Vegas

pleaded guilty and was sentenced for violating the BSA after

allowing a casino patron to gamble with illicit proceeds from an

illegal bookmaking business. The casino executive not only turned

a blind eye to the laundering of these proceeds, but he authorized

numerous complimentary benefits, including meals, free lodging,

and golf trips with senior executives, where he solicited new

customers for his illegal gambling business.

The MGM Grand and The Cosmopolitan casinos also entered

settlement agreements with the Department of Justice to resolve

the allegations of money laundering and violations of the BSA.

Each casino accepted responsibility for the laundering of these illicit

funds, totaling over $4 million at the MGM Grand and $900,000 at

The Cosmopolitan. The casinos admitted to failing to properly file

BSA reports, agreed to pay a combined $7.45 million fine.

We participate in Suspicious Activity Report Review Teams and

Financial Crimes Task Forces in 92 federal judicial districts.

Through these efforts, IRS-CI special agents and investigative

analysts collaborate with federal, state, and local law enforcement

partners across the country to identify and investigate financial

crimes. In FY 2024, at least 440 investigations originated as a lead

from BSA data.

2024 | IRS-CI ANNUAL REPORT

Combatting

CARES Act

Fraud

In March 2020, Congress passed the Coronavirus Aid, Relief, and

Economic Security (CARES) Act to provide emergency financial

assistance to Americans affected by the economic impact of

the COVID-19 pandemic. Criminals saw the CARES Act as an

opportunity to defraud the government by submitting false claims.

IRS-CI has dedicated extensive resources to fighting this fraud

since the early days of the pandemic.

A relatively new area of concern arose in 2023 when fraudsters

turned their attention to the Employee Retention Credit (ERC). This

credit is a refundable tax credit for businesses who continued to

pay employees while being shut down due to lockdowns and other

restrictions. The ERC became a target for scammers, who used

aggressive marketing tactics and falsely touted they were tax credit

experts to entice individuals and businesses to file for the credit.

In 2023, tax professionals and IRS personnel noticed an extremely

high rate of improper ERC claims being filed. Third-party ERC

promoters provided taxpayers with misinformation about the

program and their businesses’ ability to meet the qualification

criteria. However, the promoters did not evaluate the businesses’

eligibility and merely filed the additional ERC claims to gain a

profit by charging fees related to those claims. As a result, ERC

fraud victims risked having their claims denied or being faced with

repaying the credit.

In September 2023, the IRS announced a moratorium on the

processing of new ERC claims due to unprecedented fraud. This

allowed the agency to implement stricter compliance reviews and

audits. The IRS began processing ERC claims once again in August

2024 and has identified 50,000 valid ERC claims, which are being

processed for payment.

In FY 2024, IRS-CI initiated 493 investigations involving more than

$5.5 billion of potentially fraudulent ERCs related to tax years 2020,

2021, 2022, and 2023. Of these investigations, 42 have resulted in

federal charges to date.

Bradford Fishback, of St. George, Utah was sentenced in May

2024 to 29 months in prison for wire fraud, money laundering, and

filing false claims. He was ordered to pay more than $685,000 in

restitution. The business owner submitted 22 false Forms 941,

Employer’s Quarterly Federal Tax Returns, and received over

$480,000 from the IRS. Lonnise Andrews, from Macon, Georgia, was

sentenced in January 2024 to serve 51 months in prison and to pay

restitution to the IRS of $331,758 for filing false claims with the IRS.

CI continues to pursue criminals who stole CARES Act funds by

exploiting the Paycheck Protection Program (PPP) and Economic

Injury Disaster Loans (EIDL).

Unraveling Billion-Dollar

Abusive Tax Shelters

An abusive tax scheme can undermine the integrity of the U.S. tax system. These

schemes often start with a legitimate tax-planning strategy but are then distorted

by a promoter to offer benefits that are too good to be true.

The IRS is actively working to combat abusive tax

schemes, including pursuing criminal prosecution

against those involved.

In the Tax Reform Act of 1976, a provision

was passed in the tax code that allowed land

owners to deduct the value of a donated

easement from their federal income taxes. This

act recognized the importance of incentivizing

private land conservation, commonly referred

to as conservation easements. A conservation

easement is a voluntary legal agreement between

a land owner and a conservation organization or

government entity that restricts certain land uses

to protect its natural scenic or agricultural values.

While the land owner retains ownership, the

easement places a permanent or long-term limit

on the activity, like development or industrial use,

to ensure the land is preserved for conservation

purposes. In exchange, the land owner may

receive tax benefits, and the easement holder

is responsible for monitoring and enforcing the

agreement. The tax deductions are based on the

difference between the land value before and

after the easement was placed, reflecting the

land’s reduced development potential.

A conservation easement becomes syndicated

when it is part of a structured investment

designed to allow multiple investors to purchase

interest in the land with the primary goal of taking

2024 | IRS-CI ANNUAL REPORT

advantage of the tax deduction associated with

donating the easement. In abusive arrangements,

promoters are syndicating easement transactions

that purport to give an investor the opportunity

to claim charitable contribution deductions and

corresponding tax savings that significantly

exceed the amount the investor invested.

aiding and assisting the filing of false tax returns,

and subscribing to false tax returns arising out

of their fraudulent tax shelter scheme related to

syndicated conservation easements. To date, at

least seven additional defendants have pleaded

guilty to criminal conduct related to Fisher’s

syndicated conservation easement tax shelters.

In 2022, the SECURE 2.0 Act was passed, which

introduced significant changes to conservation

easements by targeting abuses in syndicated

conservation easement transactions. These

changes aim to prevent fraud, ensuring that

conservation easements serve legitimate

environmental purposes rather than functioning

as tax shelters for investors.

The appraisers also serve as key components in

these schemes. Walter “Terry” Douglas Roberts

II, a licensed appraiser in North Carolina, inflated

the values of at least 18 conservation easements

by not following normal appraisal methods,

making false statements, and either personally

manipulating or relying on knowingly manipulated

data to reach a targeted appraisal value, resulting

in the desired tax deduction amount. Roberts

admitted he inflated some of his appraisals by at

least 600%. The inflated appraisals for these

18 conversation easements resulted in more than

$466 million in tax deductions and a tax loss to

the IRS of over $129 million.

In January 2024, Jack Fisher, a certified public

accountant (CPA), and James Sinnott, an attorney,

were sentenced to 25 years and 23 years in

prison, respectively, for their roles in a syndicated

conservation easement tax scheme. For more

than a decade, Fisher and Sinnott designed,

marketed, and sold more than $1.3 billion in

abusive syndicated conservation easement tax

shelters. They inflated the value of the easements

so their clients could claim fraudulently inflated

tax deductions, which resulted in over $450

million in tax losses to the IRS. Fisher and Sinnott

were convicted of conspiracy to defraud the

United States, conspiracy to commit wire fraud,

Safeguarding

Our National

Security

IRS-CI plays a significant role in combating both domestic and

international terrorism. IRS-CI’s Narcotics and National Security

Section collaborates with federal law enforcement partners to

identify, disrupt, deter, and defeat terrorism, espionage, and

other intelligence activities undertaken on behalf of our nation’s

adversaries. We play a critical role in the national security of our

nation through our participation in the National Joint Terrorism Task

Force and the National Counterintelligence Task Force.

In January 2024, U.S. Navy service member Petty Officer Wenheng

Zhao was sentenced to 27 months in prison for transmitting

sensitive U.S. military information to an intelligence office of the

People’s Republic of China in exchange for bribery payments. Zhao

worked at Naval Base Ventura County in Port Hueneme, California.

Between August 2021 through May 2023, Zhao received payments

in exchange for sensitive, non-public information regarding U.S.

Navy operational security and critical infrastructure.

An IRS-CI investigation led to the indictment of Jason Brown

who pleaded guilty in December 2023 to trafficking fentanyl and

other drugs in an attempt to support the Islamic State of Iraq and

al-Sham, aka ISIS. According to Brown’s plea agreement, on at

least three occasions, Brown provided cash to be wired to an

ISIS soldier engaged in terrorist activity in Syria. Unbeknownst to

Brown, the purported ISIS fighter was actually an undercover law

enforcement officer.

In December 2023, Johnny Paul Tourino was sentenced to

18 months in prison and ordered to forfeit approximately $2

million. Tourino conspired to procure and illegally ship high-end

computer servers from the United States to Iran, in violation of the

International Emergency Economics Powers Act (IEEPA) and U.S.

sanctions against Iran. When the manufacturer of the servers asked

Tourino where he planned to send the servers, he falsely stated they

were “NOT going to Iran” and that they were destined for a bank

in Africa. When the Department of Treasury blocked funds from

Iran that Tourino used to pay for the servers, he falsely conveyed to

government officials that the servers were destined for Slovenia.

Judy Grace Sellers, a self-proclaimed sovereign citizen, was

sentenced to nine years in prison for a $3.4 million tax fraud

scheme, filing a false lien, and absconding. Sellers operated the

website commercialredemption.com, where she promoted the

use of IRS Forms 1099-OID to commit tax fraud. Sellers falsely

purported that the U.S. Treasury maintains secret accounts

attributed to every U.S. citizen that can be accessed by completing

a series of bogus documents, including IRS Forms 1099. These

fraudulent returns sought massive refunds based on non-existent

1099-OID income and withholdings.

2024 | IRS-CI ANNUAL REPORT

Preserving

Public Trust

Trust in those in public service is essential to our democracy. It is

the comfort that no matter what position of power an individual

might hold, no one is above the law. When someone in a public

position is bribed, receives kickbacks, or embezzles funds, all

taxpayers lose. Whether the position is at the local, state, or federal

level, individuals in public service are accountable to the American

public, and IRS-CI ensures those who abuse their power by

committing financial crimes are brought to justice.

When political figures violate the law, it erodes the public’s faith in

the electoral process. IRS-CI investigations resulted in the conviction

of Senator Robert Menendez for corruption and bribery offenses,

former Congressman George Santos pleading guilty to filing fraudulent

Federal Election Commission (FEC) reports and embezzling funds

from campaign donors, and Abhijit Das, a candidate for the U.S.

House of Representatives, receiving 21 months in prison. Individuals

contributed approximately $125,000 to Das campaign, he structured

the contributions as personal loans to a family member to circumvent

FEC reporting requirement and contribution limits.

Unfortunately, corruption is not limited to national political positions

and can happen in any community. For years, former Los Angeles

City Council member José Luis Huizar abused his position to operate

a pay-to-play scheme that sought nearly $2 million worth of bribes

from real estate developers; he was sentenced to 156 months in

prison. A former city of Newark official, who served as deputy mayor,

also admitted to violating his duties by accepting bribes to advance

and influence private real estate interests.

IRS-CI safeguards public trust and the integrity of law enforcement

by investigating individuals who swore to uphold the law but instead

violated it. A jury found a rogue Homeland Security Investigations

agent guilty of tax fraud, structuring, and concealment offenses

and sentenced him to 74 months in prison. A former Massachusetts

State Police lieutenant Daniel J. Griffin was sentenced to five years

for conspiring to steal thousands of dollars in federally funded

overtime and hiding over $700,000 of his revenue from his security

business from the IRS. Griffin made and approved false entries

on forms and other documentation to conceal and perpetuate

the fraud. A former New York state trooper and president of the

Law Enforcement Employees Benevolent Association (LEEBA)

was sentenced to 40 months in prison for an embezzlement fraud

scheme, personal income tax evasion, and employment tax fraud.

For at least eight years, he participated in a scheme to steal,

embezzle, and misappropriate money from the Annuity Fund and

individual members’ retirement accounts.

Public trust positions were created to serve the public, not defraud

or dishearten the public’s confidence in the government. IRS-CI is

uniquely qualified to investigate corruption of all types, because, at its

core, corruption is a crime of greed, often involving bribery, extortion,

embezzlement, kickbacks, tax fraud, and money laundering.

Field Office Map

Click on a city to go to that Field Office.

NORTHERN AREA

SEATTLE

GUAM

NEWARK

DENVER

ST. LOUIS

OAKLAND

BOSTON

DETROIT

CHICAGO

CINCINNATI

NEW YORK

PHILADELPHIA

WASHINGTON, D.C.

CHARLOTTE

LOS ANGELES

PHOENIX

ATLANTA

DALLAS

PUERTO RICO

WESTERN AREA

HOUSTON

TAMPA

MIAMI

U.S. VIRGIN ISLANDS

SOUTHERN AREA

2024 | IRS-CI ANNUAL REPORT

Denver

DenverFieldOffice@ci.irs.gov

THE DENVER FIELD OFFICE

covers a vast and diverse area

encompassing approximately

432,500 square miles that

includes the states of Colorado,

Idaho, Montana, and Wyoming.

Our special agents are based

in twelve cities throughout

the region and specialize in

investigating sophisticated

financial crimes involving evading

federal income or payroll taxes,

money laundering, and COVID-19

relief scams. Denver Field Office

special agents focus on financial

crimes in our region and lead

investigations all over the world.

When other law enforcement

agencies identify any financial

aspect of an investigation, they

rely on our agents’ unmatched

financial investigative expertise

to present the most thorough

investigation possible to federal

prosecutors. These investigations

often involve the Organized Crime

Drug Enforcement Task Forces

(OCDETF) and lead to dismantling

drug operations by disrupting the

flow of money throughout the

organization. Denver’s team also

includes our professional staff

who provide critical support to

our investigations.

Husband and Wife Sentenced

for Defrauding an Elderly Victim

and Obstruction of Justice

the government seized a bitcoin wallet valued at approximately

$280,000. In 2023, Osborn was sentenced to 188 months in

prison and three years of supervised release and was ordered

to forfeit the seized bitcoin wallet. Osborn’s co-conspirators

received a collective sentence of 16 years and four months.

Between 2015 and 2017, James Dougherty and his wife, Jessica

Dougherty, engaged in a scheme to defraud an elderly victim.

In early 2015, the Doughertys moved into a building on their

victim’s 46-acre ranch in Boise, Idaho, to provide assistance in

exchange for free rent. Over time, James gained control of the

victim’s affairs, including being named as the victim’s power of

attorney for finances. Shortly after obtaining power of attorney

privileges, the ranch was transferred to the Doughertys through

a trust. In late 2015, the victim’s health deteriorated. When the

victim was declared incapacitated, James was appointed sole

trustee of the trust. In 2015 and 2016, the Doughertys began

to transfer funds from the victim’s bank accounts for their own

use. In 2017, the Doughertys entered into an agreement to

purchase the ranch from the trust for far less than market value,

which James executed as trustee. During the investigation,

Jessica admitted to knowingly destroying records on a laptop

that were relevant to the investigation. In August 2024, James

was sentenced to 41 months in prison for wire fraud involving a

scheme to defraud an elderly victim, and Jessica was sentenced

to three years of probation for obstruction of justice.

Learn more about this case.

Denver Man Conspired

to Commit COVID Fraud

Between March and October 2020, Chandler Simbeck conspired

with Russell Foremen to submit loan applications with false

information to the Small Business Administration (SBA) for

himself and various businesses. Soon after, Simbeck and

Foreman created a limited liability company and applied for an

Economic Injury Disaster Loan (EIDL). However, the company

never engaged in any business activity. On the loan applications,

the duo submitted fraudulent figures for the gross revenue and

cost of goods sold. After Simbeck received $149,900 from the

EIDL application, he wired $50,000 to Foreman. In December

2023, Simbeck was sentenced to 37 months in prison and

was ordered to pay $151,000 in restitution for his role in a

conspiracy to defraud the U.S. government. Earlier in 2023,

Foreman was sentenced to 66 months in prison for a similar

scheme involving falsified COVID relief applications.

Learn more about this case.

Final Conspirator in Drug

Trafficking Operation Sentenced

to Over 15 Years in Prison

While incarcerated for other illegal activity, Michael Osborn, of

Boise, Idaho, used a contraband cell phone to communicate

with members of a conspiracy to purchase and distribute “bath

salts,” also known as alpha-pyrrolidinohexanophenone (a-PHP).

From October 2019 to March 2021, Osborn’s co-conspirators

received shipments containing the drugs from outside the

United States and converted the profits to bitcoin to conceal

the nature and source of the proceeds. During the investigation,

Owner of Online Luxury

Baby Boutique Sentenced

to 90 Months for Defrauding

COVID-19 Relief Programs

Shambrica Washington, owner of Tiny Toes and Tiaras based

in Colorado Springs, obtained loans from the Small Business

Administration for two Economic Injury Disaster Loans (EIDL)

and two Paycheck Protection Program (PPP) loans for a total

of $485,749.00 between March of 2020 and July of 2020. To

obtain the fraudulent loans, Washington misrepresented how

many people were employed by her business and the business’s

wages, revenues, and costs of operation. She used the funds

to purchase a car and a custom-built home, to pay for elective

surgery, and to pay credit card debt and other bills. She then

applied for millions of dollars in additional loans, grants, and

tax credits, including by applying for advance tax credits

from the IRS and a $6 million grant through a Small Business

Administration program intended for shuttered concert venues.

Washington was found guilty by a federal jury on 31 counts

including wire fraud, bank fraud, money laundering, and false

claims offenses. She was sentenced to 90 months in federal

prison followed by three years of supervised release and

ordered to pay $542.924.45 in restitution.

Learn more about this case.

Former Farm Foreman Sentenced

to Federal Prison for Extorting

Agricultural Workers and Tax Fraud

Ernesto Garza worked as a supervisor and foremen for farm

workers at an agricultural services company that operates

throughout Idaho. While serving as the supervisor, he prepared

and submitted timesheets for the workers but regularly falsified

those timesheets by adding extra hours and asked the workers

to return cash to him for the extra hours. Between at least 2014

and 2019, Garza also charged the workers an unauthorized

flat fee ranging from $750 to $2,500 to work for the company.

Between 2013 and 2019, Garza also deposited approximately

$493,153 in unreported income into his personal bank

accounts. The income was derived from the extortion described

above, as well as a separate scheme to defraud the farm. Garza

filed false tax returns for the years 2013 through 2019, when he

did not disclose the additional income on the returns. Garza was

sentenced to 27 months in federal prison and was ordered to

pay $621,724 in restitution to his many victims.

Learn more about this case.

View FO Photo Gallery

Western Area

COLORADO: Colorado Springs, Denver, Durango, Fort Collins, Grand Junction, Westminster

2024 | IRS-CI ANNUAL REPORT

IDAHO: Boise, Coeur D’alene

MONTANA: Billings, Helena, Missoula

WYOMING: Cheyenne

Denver

DenverFieldOffice@ci.irs.gov

THE DENVER FIELD OFFICE

covers a vast and diverse area

encompassing approximately

432,500 square miles that

includes the states of Colorado,

Idaho, Montana, and Wyoming.

Our special agents are based

in twelve cities throughout

the region and specialize in

investigating sophisticated

financial crimes involving evading

federal income or payroll taxes,

money laundering, and COVID-19

relief scams. Denver Field Office

special agents focus on financial

crimes in our region and lead

investigations all over the world.

When other law enforcement

agencies identify any financial

aspect of an investigation, they

rely on our agents’ unmatched

financial investigative expertise

to present the most thorough

investigation possible to federal

prosecutors. These investigations

often involve the Organized Crime

Drug Enforcement Task Forces

(OCDETF) and lead to dismantling

drug operations by disrupting the

flow of money throughout the

organization. Denver’s team also

includes our professional staff

who provide critical support to

our investigations.

Denver field office members participate in career fair.

Assistant Special Agent in Charge interviewed for a television broadcast.

Special agents conduct firearms training.

Denver field office holds Citizen Academy for students.

View FO Cases

Members of Denver field office at annual training.

Western Area

COLORADO: Colorado Springs, Denver, Durango, Fort Collins, Grand Junction, Westminster

2024 | IRS-CI ANNUAL REPORT

IDAHO: Boise, Coeur D’alene

MONTANA: Billings, Helena, Missoula

WYOMING: Cheyenne

Los Angeles

LosAngelesFieldOffice@ci.irs.gov

THE LOS ANGELES FIELD OFFICE

is the nation’s largest field office

by population serving nearly 24

million people, stretching over

nine counties from San Luis

Obispo to the border between

United States and Mexico. The

Los Angeles Field Office covers

two judicial districts in California,

the Central and the Southern

Judicial Districts. The Los Angeles

Field Office works a diverse mix

of financial investigations across

this geographic area, including

cybercrime, international tax fraud,

identity theft, public corruption,

and Bank Secrecy Act violations.

We play crucial roles in the U.S.

Attorney’s priority task forces,

including JTTF and OCDETF.

View FO Photo Gallery

Orange County Heroin

Home-Delivery Orchestrators

Sentenced to 24 Years

From 2003 through July 2021, brothers Victor and Julio Martinez

masterminded a complex drug trafficking operation supplying

primarily heroin to customers in Orange County, which resulted

in at least one user’s death. To mask their operations, the

brothers operated call centers customers could call to coordinate

meetings with a street dealer to exchange cash for narcotics. To

further conceal their activities, the Martinez brothers directed

others to deposit drug proceeds into bank accounts held by

co-conspirators with specific instructions to structure deposits at

various banks in amounts less than $10,000 to evade the banks’

federal reporting requirements. Victor and Julio Martinez each

plead guilty to one count of conspiracy to distribute heroin. In

December 2023, each of the Martinez brothers was sentenced to

288 months in prison. This case was part of an Organized Crime

Drug Enforcement Task Force (OCDETF) investigation targeting all

levels of the international drug trafficking organization led by the

Martinez brothers.

Learn more about this case.

Granada Hills Man Sentenced

to 17½ Years for COVID Related

Benefits Scam and Stealing

Dozens of Car Titles

From 2020 to September 2022, Eduard Gasparyan stole dozens

of identities to fraudulently obtain more than $1.5 million in

COVID-19 related unemployment insurance benefits from

the California Employment Development Department (EDD)

and used debit cards to withdraw the fraudulently obtained

benefits at ATMs. Gasparyan used those same stolen identities

to steal dozens of vehicle titles and to purchase vehicles with

fraudulent checks or bank account numbers. Gasparyan also

stole vehicles by using stolen identities to rent the vehicles

and later used forged documents to convince DMV employees

to remove the rental car companies as the registered owners.

Gasparyan pleaded guilty to one count of conspiracy to commit

wire fraud and was sentenced in February 2024 to 210 months

in prison and was ordered to pay $2,232,767 in restitution.

His co-conspirator and then-fiancée, Angela Karchyan, was

sentenced in February 2023 to 41 months in prison and ordered

to pay restitution of the same amount.

Learn more about this case.

Former Malibu Resident Receives

15½ Years for Running Fraudulent

Investment Scheme

From November 2013 to April 2015, Frank Harold Rosenthal,

formerly of Malibu but most recently of New York City, lured

victims into a fraudulent investment opportunity, accumulating

more than $3 million from trusting investors. Rosenthal

convinced his victims he had inside connections at Goldman

Sachs that provided him special access to purchase shares

of Alibaba, a Chinese e-commerce company, at a discount

before its initial public offering. Rosenthal negotiated and

drafted fraudulent loan agreements and promissory notes with

the victims, promising significant returns on their loans and

investments. Instead of delivering on his promises, Rosenthal

used his victims’ investments to fund a lavish lifestyle,

which included the $16,000 monthly rent of a Malibu home.

Rosenthal pleaded guilty to two counts of wire fraud, and he

was sentenced in November 2023 to 188 months in prison and

ordered to pay $1,182,500 in restitution to his victims.

Learn more about this case.

Westwood Man Sentenced to

More Than 9 Years in Prison for

Long-Running Surety Bond Scam

From September 2016 to September 2019, Tommy Lester Watts

of Westwood defrauded victims out of more than $5 million

by claiming he could provide surety bonds and other financial

guarantees for large-scale projects. Watts convinced victims

that he could help them obtain financing for their projects via his

various companies, including the Sherman Oaks-based Source

One Surety LLC. Watts falsely claimed the bonds or guarantees

were underwritten by well-known companies and banks and

were backed by assets in the millions or billions of dollars.

Neither Watts nor any of his companies were licensed to sell

such bonds in California. He laundered the proceeds through

accounts in the names of unregistered corporations and fake

taxpayer identification numbers. He spent his falsely obtained

proceeds on a lavish lifestyle, including classic and luxury cars,

rent for high-end apartments, and the purchase of luxury retail

goods. Watts pleaded guilty to one count of transactional money

laundering and one count of tax evasion. In November 2023, he

was sentenced to 110 months in prison and was ordered to pay

$8,995,879 in restitution, $4,226,535 of which is to the IRS.

Learn more about this case.

Binance CEO Plead Guilty

to Federal Charges, Agreed to

$4 Billion Resolution

Binance Holdings Limited, the entity that operates the world’s

largest cryptocurrency exchange, Binance.com, admitted in

November 2023 to violations of U.S. anti-money laundering

and sanctions laws that protect American national security

and the integrity of the international financial system. Binance

willfully operated as an unregistered money services business

in an attempt to skirt Financial Crimes Enforcement Network

(FinCEN) requirements to submit suspicious activity reports on

questionable transactions. Between August 2017 and October

2022, Binance executed more than 1.67 million virtual currency

trades on its Binance.com platform between U.S. citizens, users

in sanctioned jurisdictions, and blocked users. As part of the plea

agreement, Binance agreed to forfeit $2,510,650,588 and to pay

a criminal fine of $1,805,475,575 for a total financial penalty of

$4,316,126,163. In addition to the financial resolution, Binance’s

founder and chief executive officer, Changpeng Zhao, a Canadian

national, pleaded guilty to failing to maintain an effective

anti-money laundering program. Zhao resigned as Binance’s CEO

and was sentenced to four months in prison.

Learn more about this case.

Western Area

CALIFORNIA: Camarillo, El Monte, Laguna Niguel, Long Beach, Los Angeles, San Bernardino, San Diego, San Marcos, Santa Ana, Santa Maria, Van Nuys

2024 | IRS-CI ANNUAL REPORT

Los Angeles

LosAngelesFieldOffice@ci.irs.gov

THE LOS ANGELES FIELD OFFICE

is the nation’s largest field office

by population serving nearly 24

million people, stretching over

nine counties from San Luis

Obispo to the border between

United States and Mexico. The

Los Angeles Field Office covers

two judicial districts in California,

the Central and the Southern

Judicial Districts. The Los Angeles

Field Office works a diverse mix

of financial investigations across

this geographic area, including

cybercrime, international tax fraud,

identity theft, public corruption,

and Bank Secrecy Act violations.

We play crucial roles in the U.S.

Attorney’s priority task forces,

including JTTF and OCDETF.

Special agent participates in Baker to Vegas law enforcement race.

View FO Cases

Special agent removes hard drive during search warrant.

Special agent presents at Cybersecurity Summit.

Special Agent in Charge holds a press conference.

Representatives from the Los Angeles field office reconstructing torn evidence.

Western Area

CALIFORNIA: Camarillo, El Monte, Laguna Niguel, Long Beach, Los Angeles, San Bernardino, San Diego, San Marcos, Santa Ana, Santa Maria, Van Nuys

2024 | IRS-CI ANNUAL REPORT

Oakland

OaklandFieldOffice@ci.irs.gov

THE OAKLAND FIELD OFFICE

is responsible for covering the

Northern and Eastern Judicial

Districts of California, which is

more than half of the state of

sunny California. Nine posts of

duty cover territory from the west

coastline to the Sierra mountains

and from the Oregon border all

the way down to Bakersfield,

CA. The Oakland Field Office is

proud to represent IRS-CI as the

leading agency in financial crimes

in Northern California. Tax fraud

is a top priority, but the field

office also partners with other

federal law enforcement agencies

in tackling financial crimes,

including money laundering and

high-profile public corruption

cases. Oakland Field Office

special agents maintain a strong

working relationship with the U.S.

Attorneys’ Offices and are involved

in local task forces, including

OCDETF, JTTF, cybercrimes, and

public corruption. Some of the top

IRS-CI cases are investigated by

special agents from the Oakland

Field Office.

View FO Photo Gallery

CEO Sentenced to 17 Years

in Prison for COVID-19 Related

Fraud and Other Offenses

Attila Colar is the former chief executive officer of All Hands on

Deck, a Richmond, California, company that held itself out as

providing a residential reentry home for probationers, parolees,

homeless persons, and those with mild mental illness. During

the investigative years, Colar went by several names, including

Dahood Sharieff Bey, Sharieff Pasha, David Lee, and Georgi

Petrakov. Colar engaged in multiple schemes to defraud,

including defrauding organizations that placed residents at his

company’s transitional housing facilities and defrauding several

lenders that were participating in the Paycheck Protection

Program (PPP). Starting in late 2018, Colar fraudulently

induced companies to refer parolees to his company using false

documents. He also filed 16 fraudulent loan applications with

lenders seeking over $34 million in government funding. Colar

was convicted on 44 felony charges relating to his actions,

including conspiracy, bank fraud, and aggravated identity theft.

In October 2023, he was sentenced to 204 months in prison

and five years of supervised release and was ordered to pay

nearly $1.2 million in restitution.

Learn more about this case.

Company President and Former

Counsel Sentenced to Prison

for Conspiracy and Tax Fraud

From 2009 to 2015, Joseph Nubla, president of Brisbane

Recycling Company, a rock-crushing business in Brisbane,

California, and Henry Ku, the company’s former counsel,

devised a check-writing scheme to avoid paying corporate

income taxes. Ku owned separate companies that were also

involved in the conspiracy. Nubla tried to dodge taxes by writing

checks to Ku totaling more than $18 million and then deducting

the checks as false deductions on Brisbane’s corporate returns.

Nubla then instructed Ku to return the money to him personally

in various ways, including money transfers, purchasing three

homes for Nubla, and by writing Nubla cashier’s checks totaling

$7 million. In 2014 alone, Nubla failed to report more than $5.8

million in income on his federal income tax return. In November

2023, Nubla was convicted of conspiracy to defraud the United

States and one count of tax evasion. He was sentenced to 36

months in prison. Ku was also convicted of conspiracy and was

sentenced to 30 months in prison.

Learn more about this case.

Dark Web Vendor Sentenced

to Eighteen Months in Prison for

Distributing MethamphetaminePressed Adderall Pills

Tony Tan, of San Francisco, operated a dark web vendor site,

Adderall123, where he sold counterfeit Adderall pills laced with

methamphetamine throughout the United States. The counterfeit

Adderall pills were created and stamped in such a way as to

mirror legitimate Adderall pills. Over the years, Tan operated

Adderall123 on numerous dark web marketplaces, including

Empire, ASAP, White House Market, and Torrez. Tan executed

thousands of sales of the counterfeit Adderall pills in various

quantities and distributed the drugs using the U.S. Postal Service.

Tan was charged in March 2023 and plead guilty, acknowledging

the extensive scale of his operation, which included thousands of

sales across multiple dark web marketplaces. In January 2024,

Tan was sentenced to 18 months in prison and three years of

supervised release. He was ordered to forfeit $17,744 in currency

and various cryptocurrencies.

Learn more about this case.

Former San Francisco Resident

Sentenced to 4 Years in Prison

for Cryptocurrency Fraud Scheme

funds as promised, he used their funds for luxury purchases

and expenses and to repay earlier investors. He fraudulently

raised tens of millions of dollars from over 100 persons and

entities. He admitted to sustaining losses, doctoring financial

documents, and failing to report income to the IRS. In January

2024, Ichioka was sentenced to 48 months in prison and

fined $5 million for his involvement in the scheme, which

primarily involved cryptocurrencies and other investment

vehicles. Additionally, he was ordered to pay over $21 million in

restitution to non-family investors and more than $40 million to

his family members.

Learn more about this case.

Former Hospitality Manager

Sentenced to Over 5 Years

Prison for Kickback Scheme

and Tax Evasion

Geoffrey Palermo, a former hospitality executive, worked as

a manager of a Hilton hotel in San Francisco. While there,

he devised a kickback scheme with contractors that inflated

invoices and deprived the hotel owners of $1.8 million, which

went to Palermo. After leaving the hotel, he managed an

auto repair business and obtained fraudulent Small Business

Administration loans by falsifying financial information. He also

admitted to withholding over $1 million in taxes from employee

paychecks that were never paid to the IRS. Palermo was

sentenced to 65 months in prison for wire fraud, failing to pay

taxes, and other charges related to the kickback scheme and

fraudulent loan applications. In addition to his prison sentence,

Palermo will serve three years of supervised release, with a

hearing scheduled for restitution and forfeiture.

Learn more about this case.

William Koo Ichioka, formerly of San Francisco and New York,

operated under the name “Ichioka Ventures” and conducted

a fraud scheme where he falsely promised investors 10% in

returns every 30 business days. However, instead of using the

Western Area

CALIFORNIA: Fresno, Modesto, Oakland, Sacramento, San Francisco, San Jose, San Rafael, Santa Rosa, Stockton

2024 | IRS-CI ANNUAL REPORT

Oakland

OaklandFieldOffice@ci.irs.gov

THE OAKLAND FIELD OFFICE

is responsible for covering the

Northern and Eastern Judicial

Districts of California, which is

more than half of the state of

sunny California. Nine posts of

duty cover territory from the west

coastline to the Sierra mountains

and from the Oregon border all

the way down to Bakersfield,

CA. The Oakland Field Office is

proud to represent IRS-CI as the

leading agency in financial crimes

in Northern California. Tax fraud

is a top priority, but the field

office also partners with other

federal law enforcement agencies

in tackling financial crimes,

including money laundering and

high-profile public corruption

cases. Oakland Field Office

special agents maintain a strong

working relationship with the U.S.

Attorneys’ Offices and are involved

in local task forces, including

OCDETF, JTTF, cybercrimes, and

public corruption. Some of the top

IRS-CI cases are investigated by

special agents from the Oakland

Field Office.

Special agent discusses opportunities with a student at a career fair.

Special agents conduct a search warrant.

Oakland field office member competes in the annual law enforcement Baker to Vegas race.

View FO Cases

Acting Assistant Special Agent in Charge makes remarks during press conference.

Special agents seize a vehicle as part of an investigation.

Western Area

CALIFORNIA: Fresno, Modesto, Oakland, Sacramento, San Francisco, San Jose, San Rafael, Santa Rosa, Stockton

2024 | IRS-CI ANNUAL REPORT

Phoenix

PhoenixFieldOffice@ci.irs.gov

THE PHOENIX FIELD OFFICE

covers the southwestern states

of Arizona, Nevada, New Mexico,

and Utah. The office covers a vast

geographic area that stretches

from the Sierra Nevada Mountains

in the west to the Rockies in the

east. From the Grand Canyon of

Arizona to the bright lights of Las

Vegas, the Phoenix Field Office

identifies and investigates a

wide variety of complex financial

crimes. The office’s special agents

investigate both legal and illegal

source tax crimes, including cases

with an international nexus.

The office also operates multiple

financial crimes task forces.

Located on the border of the

United States and Mexico,

the office provides significant

participation in high level

OCDETF cases.

ARIZONA: Glendale, Mesa, Phoenix, Tucson

2024 | IRS-CI ANNUAL REPORT

Harbour also pleaded guilty to tax evasion, agreeing he evaded

more than $4 million in taxes. In January 2024, Harbour was

sentenced to eight years in prison for wire fraud, transactional

money laundering, and tax evasion. The judge increased

Harbour’s sentence due to his efforts to pay off witnesses.

Peter Vega, of Rio Rico, Arizona, was the leader of a drug

trafficking organization that distributed methamphetamine and

fentanyl throughout the United States. Vega coordinated the

shipment of methamphetamine and fentanyl from Arizona to the

eastern United States using the U.S. Postal Service. Vega then

coordinated the laundering of the drug proceeds by funneling

money through multiple bank accounts held by third parties.

After he was indicted, Vega fled to Mexico, where he was

subsequently apprehended and extradited back to the United

States to face charges. In June 2024, Vega was sentenced to 180

months in prison followed by five years of supervised release

for possession with intent to distribute fentanyl, conspiracy

to possess with intent to distribute methamphetamine, and

conspiracy to launder a monetary instrument.

Learn more about this case.

Investment Advisor behind

$8 Million Fraud Scheme Lands

8-Year Prison Sentence

NEVADA: Las Vegas, Reno

NEW MEXICO: Albuquerque, Las Cruces, Santa Fe

Nevada Restauranteur

Sentenced to Over 3 Years

in Prison for Tax Evasion

Raul Gil, of Las Vegas, Nevada, owned and operated three Casa

Don Juan restaurants. From 2014 through 2018, Gil instructed

his manager/internal bookkeeper to underreport cash sales at

his restaurants by approximately $5.1 million. Gill then provided

these false records to his tax return preparer to prepare a return

grossly understating his income. During an IRS audit in July 2018,

Gil instructed his accountant and his bookkeeper to provide the

false records that matched the figures reported on the tax returns

to the IRS. During interviews with the IRS, Gil falsely stated the

fabricated daily cash reports and point-of-sale records were

accurate. In January 2024, Gil was sentenced to 37 months

in prison for skimming $5 million in cash sales and filing false

federal income tax returns with an overall tax loss of $1.6 million.

Learn more about this case.

David Allen Harbour, of Scottsdale, Arizona, acted as a

self-styled investment advisor who defrauded numerous victims

between 2007 and 2021. Unbeknownst to the victims, Harbour

intentionally misled investors regarding the application of their

investment funds and charged finder’s fees up to 25 percent

of the investments. Harbour stole over $8 million throughout

the course of this scheme by luring his victims in with the lavish

lifestyle of a successful businessman and by showering potential

investors with gifts and travel opportunities. The stolen money

was diverted to fund Harbour’s lavish lifestyle, which continued

to lure in more potential investors. Extravagant expenditures

included private jet travel, speedboats, attending the London

Olympics, stays at luxury hotels, expensive jewelry, a private 40th

birthday concert by the Eagles, country club memberships, and

multi-million-dollar residences in Arizona, Idaho, and Mexico.

View FO Photo Gallery

Western Area

Leader Of Drug Trafficking

Organization Sentenced

to 15 Years in Prison

Human Smuggling Organization

Leader Sentenced to 4 Years

in Prison

Tony Cardenas, of Phoenix, Arizona, was the leader of a

Phoenix-based human trafficking organization, moving

undocumented noncitizens from Central America and Mexico

to the Tohono O’odham Nation. These individuals were then

directed to nearby stash houses or taken to stash houses

in the Tucson and Phoenix areas. The human smuggling

organization used Phoenix as a distribution hub and then

held undocumented noncitizens there until final payment

was received. Once payments were made, these individuals

were driven to their final destinations throughout the United

States. A financial investigation by IRS-CI was able to identify

numerous coconspirators, who used their bank accounts and

money service businesses to channel over $1 million back to the

smuggling organization in Arizona. This investigation revealed at

least 17 individuals with ties to the Cardenas human smuggling

organization that have ultimately been convicted of human

trafficking and/or money laundering. In March 2024, Cardenas

was sentenced to 48 months in prison followed by three years of

supervised release for conspiracy to transport and harbor illegal

aliens for profit and conspiracy to commit money laundering.

Learn more about this case.

St. George Businessman

Sentenced to Over 2 Years

in Prison for COVID-Relief Fraud

Over the course of two years, Bradford Fishback, of St. George,

Utah, fraudulently obtained government funds in the amount

of $685,845.05 from programs intended to help employees

and small businesses during the COVID-19 pandemic. Fishback

devised a scheme to defraud and obtain money by fraudulently

submitting requests for Employee Retention Tax Credits, which

resulted in him receiving $482,058.46 from the IRS. Fishback

also fraudulently submitted loan applications to the Small

Business Administration (SBA), including Paycheck Protection

Program (PPP) loan applications to obtain $77,629 in PPP

loans and Economic Injury Disaster Loans (EIDL) applications

to obtain $137,573, and he submitted false applications

for unemployment benefits to the Nevada Department of

Employment, Training, and Rehabilitation, which resulted in

him receiving $45,831 in unemployment benefits. In May

2024, Fishback was sentenced to over two years imprisonment

followed by three years supervised release and ordered to pay

$685,845.05 in restitution for wire fraud, money laundering,

and false claims.

Learn more about this case.

UTAH: Ogden, Salt Lake City

Phoenix

PhoenixFieldOffice@ci.irs.gov

THE PHOENIX FIELD OFFICE

covers the southwestern states

of Arizona, Nevada, New Mexico,

and Utah. The office covers a vast

geographic area that stretches

from the Sierra Nevada Mountains

in the west to the Rockies in the

east. From the Grand Canyon of

Arizona to the bright lights of Las

Vegas, the Phoenix Field Office

identifies and investigates a

wide variety of complex financial

crimes. The office’s special agents

investigate both legal and illegal

source tax crimes, including cases

with an international nexus.

The office also operates multiple

financial crimes task forces.

Located on the border of the

United States and Mexico,

the office provides significant

participation in high level

OCDETF cases.

Nevada special agents at Exploration Peak Park.

Special agent at search warrant.

Western Area Director Field Operations and Acting Assistant Special Agent in Charge participate in FinCEN Exchange.

View FO Cases

Arizona special agents hike Camelback Mountain.

Western Area

ARIZONA: Glendale, Mesa, Phoenix, Tucson

2024 | IRS-CI ANNUAL REPORT

NEVADA: Las Vegas, Reno

NEW MEXICO: Albuquerque, Las Cruces, Santa Fe

Special agents participate in Law Enforcement Torch Run.

UTAH: Ogden, Salt Lake City

Seattle

SeattleFieldOffice@ci.irs.gov

THE SEATTLE FIELD OFFICE

investigates a wide variety

of complex crimes related to

domestic and international tax,

public corruption, identity theft,

cybercrime, and drug-related

financial crimes. The Seattle

Field Office’s area of operation

spans four states and two

territories: Alaska, Hawaii,

Oregon, Washington, Guam,

and the Commonwealth of the

Northern Mariana Islands. The

Seattle Field Office works with

U.S. Attorneys’ Offices in seven

judicial districts in four different

time zones (on both sides of the

international date line). The field

office is privileged to serve a

diverse and unique population of

taxpayers. Financial investigative

expertise, meticulous planning,

and determined collaboration

allow us to effectively combat all

types of financial crime for the

benefit of the communities within

our geographic area.

View FO Photo Gallery

Former Hawaii Resident Sentenced

to Prison for Defrauding Investors

of $1.2 Million

Oregon Repeat Offender

Convicted of Human Trafficking

and Money Laundering

Newton Kaleo DeLeon defrauded at least 45 investors

throughout Hawaii and California out of approximately $1.2

million. DeLeon solicited money from victim-investors by falsely

representing that the money they provided him was for his

flower lei business, “leiorders.com.” Instead, DeLeon spent

the money on his personal expenses, including gambling and

luxury items, such as a Chevrolet Tahoe. DeLeon falsely told

victim-investors that he needed investment funds to purchase

flowers and supplies for lei purchase orders that he had already

executed with third parties, including well-known casino hotels

in Las Vegas, Nevada. DeLeon provided investors with fictitious

and fabricated purchase orders, contracts, and other documents

that he created with unauthorized and false branded logos, and

he forged signatures to make it appear he had large business

lei orders with the third parties. DeLeon was sentenced to 57

months in prison for wire fraud and money laundering.

Johnell Lee Cleveland, of Tigard, Oregon, an individual with a

lengthy criminal history, was sentenced to federal prison for

transporting an adult victim across state lines for illegal sexual

activity and laundering the proceeds through a Portland-based

bottled water company. Less than 30 days following his release

from prison for prior drug, firearm, and fraud convictions,

Cleveland engaged in an insurance fraud scheme. Shortly

thereafter, Cleveland conducted other fraudulent activity,

including devising a scheme to fraudulently obtain COVID relief

program funds. In addition, Cleveland transported an adult

woman across state lines for illegal sexual activity, demanding

she travel frequently and engage in commercial sex. Meanwhile,

Cleveland kept all the money the woman earned and threatened

her with various punishments. To conceal and disguise the

nature of his victim’s proceeds, Cleveland used the money to

pay business expenses for a Portland-based bottled water

company and a monthly retainer with a modeling agency.

Cleveland was sentenced to 108 months in prison followed by

seven years of supervised release.

Learn more about this case.

Korean Air Lines Employee Diverted

Millions of Dollars in Bank Fraud

and Money Laundering Scheme

Sung Peel Hwang, aka Don Sung Peel Hwang, from the

Republic of Korea and a naturalized U.S. citizen, worked as an

administrator at the Guam Korean Airlines office. Hwang’s duties

included reporting the number of passengers and paying the

corresponding Passenger Facility Charge (PFC). As part of his

scheme, Hwang underreported the PFC and kept the difference

for himself. Over the course of the three-year scheme, Hwang

deposited over $3.5 million in funds from Korean Air Lines (KAL)

into his personal bank account and diverted over $600,000.00

in KAL funds for his personal use. Hwang was sentenced to 41

months in prison and ordered to pay $615,271.51 in restitution

for bank fraud and money laundering.

Learn more about this case.

Western Area

ALASKA: Anchorage

GUAM: Hagatna

2024 | IRS-CI ANNUAL REPORT

HAWAII: Honolulu, Kona

OREGON: Bend, Eugene, Medford, Portland

Learn more about this case.

Minnesota Man Sentenced

to Over 8 Years in Prison

for Tax Fraud Scheme

approximately 30 percent for each fraudulent refund. In total,

Gensmer caused a tax loss to the IRS of approximately $6.7

million. Gensmer was sentenced to 108 months in prison and

three years of supervised release, and he was ordered to pay

$4,716,732.35 in restitution to the United States for wire fraud

and assisting in the preparation of false tax returns.

Learn more about this case.

Payroll Services CEO Sentenced

to Prison for Withholding Millions

in Payroll Taxes

Robert Kohnle was the president, secretary, and chief executive

officer of Real Benefits Group Inc., which conducted business

under the name of Aliat. Aliat was a professional employer

organization that provided payroll and payroll-related services

for its clients. Beginning with the fourth quarter of 2016 through

the fourth quarter of 2022, Kohnle received funds from Aliat’s

clients that represented payroll tax withholdings, but he kept

the money rather than pay the IRS, as required by law. Instead,

Kohnle used the money to pay Aliat’s other expenses and

creditors, including himself. In total, Kohnle caused a tax loss

to the IRS of more than $22.6 million. Kohnle was sentenced to

27 months in prison and three years of supervised release, and

he was ordered to pay $14,092,693.42 in restitution for willfully

failing to pay employment taxes owed to the IRS.

Learn more about this case.

Beau Gensmer, of Prior Lake, Minnesota, developed a scheme

to file 63 false tax returns that claimed fraudulently inflated tax

refunds on behalf of unwitting taxpayer clients. In furtherance

of his scheme, Gensmer hired two tax returns preparers,

including one based in Anchorage, Alaska. Gensmer knowingly

emailed the other two preparers false information, including

fraudulent business losses and charitable contributions. The

return preparers relied on the information he provided and, as

a result, prepared and electronically filed false returns for each

of his clients. Gensmer charged his clients a commission of

WASHINGTON: Seattle, Spokane, Tacoma, Vancouver

Seattle

SeattleFieldOffice@ci.irs.gov

THE SEATTLE FIELD OFFICE

investigates a wide variety

of complex crimes related to

domestic and international tax,

public corruption, identity theft,

cybercrime, and drug-related

financial crimes. The Seattle

Field Office’s area of operation

spans four states and two

territories: Alaska, Hawaii,

Oregon, Washington, Guam,

and the Commonwealth of the

Northern Mariana Islands. The

Seattle Field Office works with

U.S. Attorneys’ Offices in seven

judicial districts in four different

time zones (on both sides of the

international date line). The field

office is privileged to serve a

diverse and unique population of

taxpayers. Financial investigative

expertise, meticulous planning,

and determined collaboration

allow us to effectively combat all

types of financial crime for the

benefit of the communities within

our geographic area.

Special agent climbs Mount Kilimanjaro.

Special agents participate in Summer Youth Academy.

View FO Cases

Special agents instruct students at Citizen Academy event.

Western Area

ALASKA: Anchorage

GUAM: Hagatna

2024 | IRS-CI ANNUAL REPORT

HAWAII: Honolulu, Kona

OREGON: Bend, Eugene, Medford, Portland

Special agents conduct a Citizen Academy for local students.

Members of Seattle field office participate in team building event.

WASHINGTON: Seattle, Spokane, Tacoma, Vancouver

St. Louis

StLouisFieldOffice@ci.irs.gov

As part of the Gateway to the

West, THE ST. LOUIS FIELD

OFFICE serves a territory that

spans the states of Iowa, Kansas,

Missouri, Nebraska, North Dakota,

South Dakota, and 38 counties in

southern Illinois. With more than

90 special agents and professional

staff members assigned to 15

posts of duty, the St. Louis Field

Office serves a population of

more than 17 million people in ten

judicial districts. While tackling

tax fraud is a top priority, the

office also partners with other

law enforcement agencies in the

investigation of a wide variety of

financial crimes, including money

laundering, narcotics trafficking,

and identity theft. To build strong

community ties, the special

agents participate in outreach

activities at local colleges and

community organizations, which

helps to build a level of trust within

the community and to recruit a

diverse pool of talent. Recognizing

IRS-CI’s distinction as the finest

financial investigation team in the

world, the St. Louis Field Office

plays a critical role in several task

forces with the U.S. Attorneys’

Offices, including OCDETF.

View FO Photo Gallery

Western Area

Russian National Sentenced

to 15 Years for $11 Million

Wire Fraud Conspiracy

Anton Vikharev, a Russian national and his coconspirators,

engaged in a scheme that caused over 7,000 fraudulent tax

returns to be filed for the tax years 2011 through 2016. Vikharev

used stolen names and Social Security numbers to claim over

$11 million in fraudulent refunds. The IRS paid over $2 million

in false tax refunds deposited into bank accounts under the

control of the coconspirators. Vikharev then withdrew the funds

from ATMs, laundered the cash, and sent the stolen money to

Russia via wire transfers. After the proceeds were laundered,

coconspirators wired at least $1 million to accounts in Russia.

Vikharev personally received $156,120 in proceeds wired

to Russian bank accounts under his control. In March 2024,

Vikharev was sentenced to 180 months in prison for his role in

this scheme and was ordered to pay $2,020,569 in restitution

and to forfeit $537,000.

Learn more about this case.

Two Former Missouri Health Care

Charity Executives Sentenced

for Roles in Multimillion-Dollar

Bribery and Embezzlement Scheme

Tommy and Bontiea Goss, former executives of a Springfieldbased charity, took part in a large-scale public corruption

scheme, where they embezzled millions and bribed multiple

elected officials in the State of Arkansas. Preferred Family

Healthcare Inc. was a charity responsible for providing a variety

of health services to individuals in Missouri, Arkansas, Kansas,

Oklahoma, and Illinois, including mental and behavioral health

treatment, substance abuse counseling, employment assistance,

aid to individuals with developmental disabilities, and medical

services. The Gosses and their coconspirators paid bribes and

kickbacks to Arkansas state elected officials in exchange for

favorable legislative and official action for the charity, including

influencing legislation that would impact the charity and direct

funds from the state’s General Improvement Fund. Tommy Goss

also embezzled funds from the charity, and he pleaded guilty

MISSOURI: Chesterfield, Lee’s Summit, Jefferson City, Springfield, St. Louis

2024 | IRS-CI ANNUAL REPORT

ILLINOIS: Fairview Heights

to one count of filing a false tax return. Tommy and Bontiea

Goss were sentenced to 72 months and 36 months in prison,

respectively. The couple was also ordered to pay $4.35 million in

forfeiture and restitution and pay $350,000 in fines.

From April 2011 to November 2018, McCann and his political

committees received more than $5 million in campaign

donations. McCann used campaign funds to purchase personal

vehicles, pay personal debts, make mortgage payments, and

pay himself. During the third day of his bench trial, McCann

pleaded guilty to all nine counts of the indictment, which

charged him with seven counts of wire fraud, one count of

money laundering, and one count of tax evasion related to his

alleged misuse of campaign money for personal expenses.

In July 2024, McCann was sentenced to 42 months in prison,

followed by two years of supervised release, and was ordered

to pay $683,816.61 in restitution for fraudulent use of campaign

funds, money laundering, and tax evasion.

Learn more about this case.

Medical Charity Founder

Sentenced to Prison for

$8 Million Fraud Scheme

Craig Anthony Reynolds, of St. Joseph, Missouri, operated

Medical Cost Sharing, a tax-exempt organization, which was

purported to be a Christian health care sharing ministry.

Reynolds and his coconspirators made false promises by

marketing the organization as a “Health Care Sharing Ministry”

to defraud hundreds of “ministry members.” They collected

more than $8 million in member “contributions.” However,

they paid only 3.1 percent in health care claims, so they could

personally profit and take most of the members’ contributions

for themselves. Medical Cost Sharing paid no claims at all for

almost two years, while collecting nearly $1.2 million in dues in

2021 and 2022. In June 2024, Reynolds was sentenced to 210

months in prison followed by three years of supervised release.

He was also ordered to pay $8,058,933 in restitution to his

victims, the IRS, and the Missouri Department of Revenue.

Learn more about this case.

Final Defendant in Large Scale

Family Drug Trafficking Organization

Sentenced to Over 22 Years in

Federal Prison

Anahi Plascencia Cardona was the last of six family

members to be sentenced as a result of their drug trafficking

operation that transported and distributed large amounts of

methamphetamine from California to Sioux Falls, South Dakota.

The six family members will serve a combined sentence of

over 80 years in prison. Cardona and her husband, Salvador

Magana Madrigal, recruited other members of Madrigal’s family,

including Madrigal’s mother, brother, aunt, and uncle, to assist

them in obtaining large amounts of methamphetamine from

California and distributing it in Sioux Falls. The family members

assisted in transporting the methamphetamine from California

by vehicle, counting shipments, and distributing the narcotic.

The group also conducted numerous financial transactions

transferring proceeds from the sales, while concealing the

nature and ownership of the money. At the time of their

arrest, Cardona and Madrigal had approximately $215,000

stored in the garage of their home. In total, the group obtained

and distributed over 150 pounds of methamphetamine and

100 pounds of marijuana. In December 2023, Cardona was

sentenced to 265 months in prison and five years of supervised

release for her role in the drug trafficking conspiracy.

Learn more about this case.

Former Illinois State Senator,

Gubernatorial Candidate Sam

McCann Sentenced to Prison for

the Fraudulent Use of Campaign

Funds and Tax Evasion

Former Illinois State Senator William Samuel McCann Jr.

engaged in a broad, five-year scheme to defraud by converting

more than $600,000 in campaign funds to his personal use.

McCann betrayed the public trust and continued his fraud even

after being confronted by federal law enforcement officers.

IOWA: Cedar Rapids, Davenport, Des Moines

KANSAS: Overland Park, Wichita

NEBRASKA: Omaha

Learn more about this case.

NORTH DAKOTA: Fargo

SOUTH DAKOTA: Rapid City, Sioux Falls

St. Louis

StLouisFieldOffice@ci.irs.gov

As part of the Gateway to the

West, THE ST. LOUIS FIELD

OFFICE serves a territory that

spans the states of Iowa, Kansas,

Missouri, Nebraska, North Dakota,

South Dakota, and 38 counties in

southern Illinois. With more than

90 special agents and professional

staff members assigned to 15

posts of duty, the St. Louis Field

Office serves a population of

more than 17 million people in ten

judicial districts. While tackling

tax fraud is a top priority, the

office also partners with other

law enforcement agencies in the

investigation of a wide variety of

financial crimes, including money

laundering, narcotics trafficking,

and identity theft. To build strong

community ties, the special

agents participate in outreach

activities at local colleges and

community organizations, which

helps to build a level of trust within

the community and to recruit a

diverse pool of talent. Recognizing

IRS-CI’s distinction as the finest

financial investigation team in the

world, the St. Louis Field Office

plays a critical role in several task

forces with the U.S. Attorneys’

Offices, including OCDETF.

Special agent in Charge interviewed for a South Dakota TV newscast.

Special agents participate in defensive tactics training.

Special agents participate in firearms training.

View FO Cases

Special agent discusses CI career options with a student.

Western Area

MISSOURI: Chesterfield, Lee’s Summit, Jefferson City, Springfield, St. Louis

2024 | IRS-CI ANNUAL REPORT

ILLINOIS: Fairview Heights

IOWA: Cedar Rapids, Davenport, Des Moines

Assistant Special Agent in Charge interviewed on the courthouse steps.

KANSAS: Overland Park, Wichita

NEBRASKA: Omaha

NORTH DAKOTA: Fargo

SOUTH DAKOTA: Rapid City, Sioux Falls

Boston

BostonFieldOffice@ci.irs.gov

THE BOSTON FIELD OFFICE

covers the six New England states,

including Connecticut, Maine,

Massachusetts, New Hampshire,

Rhode Island, and Vermont, each

of which has their own judicial

district. New England is home

to some of the greatest sports

franchises, a long coastline of

beautiful beaches, and several

of the oldest and most renowned

colleges and universities in

the country. The Boston Field

Office’s relationship with the

U.S. Attorney’s Office and our

law enforcement partners is one

of the best in the country. The

Boston Field Office special agents

are vital members of several task

forces, including OCDETF, JTTF,

cybercrimes, securities fraud,

and healthcare fraud.

View FO Photo Gallery

National Drug Kingpin Sentenced

to 12 Years in Prison Along with

7 Other Co-Conspirators

DaJuan Williams, of Detroit, supervised a nationwide drug

trafficking business distributing vast quantities of fentanyl,

methamphetamine, and other drugs. The drugs included

fentanyl pills created to resemble prescription medications.

Williams also supervised the laundering of drug proceeds via

cash deposits into bank accounts, then he transferred proceeds

using Cash App, Zelle, and Venmo. Williams conducted business

across the country, including Vermont, North Dakota, and

Montana, and he recruited workers at each location. Williams

reaped the benefits of this drug distribution network and lived a

lavish lifestyle. He withdrew cash and purchased cars, clothes,

jewelry, and houses, including the rental of a home in Hollywood

Hills for approximately $15,000 per month. In January 2024,

DaJuan Williams was sentenced to 144 months in prison

followed by four years of supervised release. Williams was

also ordered to pay a forfeiture of $600,034.09. To date, seven

co-conspirators have been sentenced to between 32 and 70

months in prison for their involvement in this scheme.

Learn more about this case.

Michigan Man Who Orchestrated

International Computer Fraud and

Online Drug Distribution Schemes

Sentenced to Decade in Prison

In 2015, Doyal Kalita, of Redford, MI, and co-conspirators,

organized an internet fraud scheme using deceptive pop-up

screens, falsely telling victims their computers were infected

with viruses and directing them to call for technical support.

Victims were connected to Kalita’s call centers in India and

Michigan and were scared or deceived into buying unneeded

products and services. Kalita and co-conspirators also launched

an online drug distribution scheme, selling prescription drugs,

Northern Area

CONNECTICUT: Bridgeport, Hartford, New Haven, Norwalk

2024 | IRS-CI ANNUAL REPORT

including opioids and other controlled substances, and shipping

them from suppliers in India and Europe to Massachusetts and

elsewhere in the United States. They disguised these activities

by using Paypal and other merchant accounts that purported

to belong to fictitious companies. Kalita was sentenced to 10

years in prison and three years of supervised release. Kalita

was also ordered to pay $272,293 in restitution to victims and

forfeiture of $2,542,784. Co-conspirators Manish Kumar and

Robert Polanco were sentenced to 87 months and 38 months,

respectively. Two of Kalita’s other alleged co-conspirators

remain fugitives.

Learn more about this case.

Former Massachusetts State Police

Lieutenant and Sergeant Sentenced

for Involvement in a Fraudulent

Overtime Scheme

From 2015 through 2018, Lieutenant Daniel Griffin,

Sergeant William Robertson, and other state troopers for the

Massachusetts State Police (MSP) conspired to steal thousands

of dollars in federally funded overtime. Griffin falsified entries

on documents to conceal and perpetuate the fraud. Once the

allegations arose, Griffin, Robertson, and other co-conspirators

destroyed documents and denied doing so to continue to

conceal the crime. Griffin also spent significant time running

a security business while he was on the clock with MSP. From

2012 to 2019, Griffin collected almost $2 million in revenue

from this business and hid over $700,000 in revenue from the

IRS. He used hundreds of thousands of dollars in income to

fund personal expenses, such as car payments, private school

tuition, payments for a second home in Cape Cod, and golf club

purchases. In April 2024, Griffin was sentenced to 60 months

in prison and three years of supervised release. Griffin was

also ordered to pay restitution in the amount of $329,163 and

a $176,700 fine. Robertson was sentenced to 36 months in

prison, to be followed by three years of supervised release, and

was ordered to pay restitution of $142,774 and forfeit $32,180.

Learn more about this case.

Head of Lowell Gang Sentenced

to 8 Years in Prison for Drug

Trafficking and Money Laundering

In August 2018, a surge in shootings and gang violence around

the Lowell, Massachusetts area led to an investigation into the

One Family Clique (OFC) and the gang leader Virak Prum. OFC

is an alliance between several gangs in and around Lowell with

ties to gangs in California and other states. Since 2019, Prum

and his co-conspirators, used the U.S. Postal Service to receive

and send illegal narcotics and cash proceeds. They provided

protection for physical shipments and maintained stash houses

in Lowell, which also served as venues for gang meetings

and other events. In January 2024, Prum was sentenced to

96 months in prison and three years of supervised release

for trafficking wholesale quantities of cocaine and laundering

millions of dollars in drug proceeds through casinos in Canada.

Learn more about this case.

Rhode Island Man Sentenced

to 8 Years in Prison for Defrauding

Investors and Tax Evasion

For almost a decade, Thomas Huling orchestrated a scheme

to defraud investors by promoting several investment projects,

including high-yielding bond trading platforms, a car emissions

reduction technology, and an online advertising and marketing

company. He solicited funds for these investments by promising

large returns with little or no risk. Instead, Huling used investor

money to fund a lavish lifestyle that included high-end vehicles,

membership and golf fees at multiple country clubs, gambling,

clothing, restaurants, travel, and improvements to his residence,

and he took great efforts to conceal the source of funds.

Between 2009 and April 2018, Huling reported no taxable

income and did not pay any income taxes. To hide his income,

Huling used nominee bank accounts, falsified the books and

records of his companies, placed personal assets in the name

of shell companies, and made false statements to IRS special

agents. In March 2024, Huling was sentenced to 96 months

in prison and three years of supervised release, and he was

ordered to pay $11,483,440 in restitution.

Learn more about this case.

MAINE: South Portland

MASSACHUSETTS: Boston, Springfield, Woburn, Worcester

NEW HAMPSHIRE: Manchester, Portsmouth

RHODE ISLAND: Warwick

VERMONT: Burlington

Boston

BostonFieldOffice@ci.irs.gov

THE BOSTON FIELD OFFICE

covers the six New England states,

including Connecticut, Maine,

Massachusetts, New Hampshire,

Rhode Island, and Vermont, each

of which has their own judicial

district. New England is home

to some of the greatest sports

franchises, a long coastline of

beautiful beaches, and several

of the oldest and most renowned

colleges and universities in

the country. The Boston Field

Office’s relationship with the

U.S. Attorney’s Office and our

law enforcement partners is one

of the best in the country. The

Boston Field Office special agents

are vital members of several task

forces, including OCDETF, JTTF,

cybercrimes, securities fraud,

and healthcare fraud.

View FO Cases

Special agent loads evidence from a search warrant.

Special Agent in Charge speaks at FinCEN Exchange.

Northern Area

CONNECTICUT: Bridgeport, Hartford, New Haven, Norwalk

2024 | IRS-CI ANNUAL REPORT

MAINE: South Portland

Special agents provide security at Boston Marathon.

Special agent seizes evidence from a search warrant.

MASSACHUSETTS: Boston, Springfield, Woburn, Worcester

NEW HAMPSHIRE: Manchester, Portsmouth

Boston field office members at a recruiting event.

RHODE ISLAND: Warwick

VERMONT: Burlington

Chicago

ChicagoFieldOffice@ci.irs.gov

THE CHICAGO FIELD OFFICE

covers several major cities and

areas dotting the coastline of

Lake Michigan, Lake Superior,

and the Mississippi River. The

Chicago Field Office has 21 posts

of duty with over 165 special

agents and professional staff

across Minnesota, Wisconsin,

Indiana, and most of Illinois.

Second to none, the Chicago

Field Office tackles tax fraud as

its top priority and investigates

a wide array of financial crimes,

including money laundering

from narcotics trafficking and

COVID-19 fraud. Chicago’s

special agents also work with

their law enforcement partners

to lend their financial expertise

to task forces, including HIDTA,

OCDETF, JTTF, cybercrimes, and

political corruption. Serving over

235,000 square miles, the office

is consistently building on and

bolstering its relationships with

other law enforcement partners,

the U.S. Attorneys’ Offices, and the

public to identify, investigate, and

refer quality cases for prosecution.

View FO Photo Gallery

California Lawyer Sentenced

to Four Years in Federal Prison

for Employment Tax Evasion

Matthew Browndorf, a California-based lawyer and owner of

several businesses throughout the United States, failed to pay

employment taxes, resulting in a total tax loss exceeding $5

million. Browndorf used the proceeds from his crimes to fund

a lavish lifestyle, featuring sports cars, private flights, club

memberships, and luxurious vacations. Meanwhile, Browndorf’s

employees were left to suffer the consequences of their wealthy

boss’s actions. Some employees were forced to move in with

relatives or borrow money from friends. Others underwent

serious medical procedures, unaware that Browndorf had failed

to appropriately remit their health insurance premiums, resulting

in a lack of coverage and the need to pay for their treatment

out-of-pocket. In November 2023, Browndorf was sentenced

to 48 months in prison, followed by three years of supervised

release. He was ordered to pay $830,000 in restitution.

Learn more about this case.

Wisconsin Attorney Sentenced

to Over 5 Years in Prison for

Fraud and Tax Evasion Schemes

Leslie Smith, a licensed attorney and the office manager for a

podiatry practice in Indianapolis, Indiana, committed numerous

fraud schemes, including healthcare fraud, wire fraud, and

tax evasion. Smith committed some of this conduct after she

was indicted on other charges. As part of her healthcare fraud

scheme, Smith submitted approximately 288 fraudulent claims

for reimbursement to Medicaid for oxygen monitoring devices

that were never ordered, which resulted in Medicaid paying

$559,197.67 in false claims. In total, $1,194,942.07 of funds

were deposited to her personal bank account from false claims.

After being charged in federal court with healthcare fraud, Smith

continued to break the law and fraudulently obtained COVID-19

mortgage assistance funds for the home of a dead relative.

She also sold a residence she jointly owned with another

individual without their knowledge by forging their signature on

documents. Smith failed to report approximately $1,299,179.01

in income from her various schemes on her tax returns. In

May 2024, Smith was sentenced to 66 months in prison for

healthcare fraud, tax evasion, and wire fraud. She was ordered

to pay $2,341,655 in restitution.

Learn more about this case.

Ringleader of Fentanyl Trafficking

Conspiracy Sentenced to Life;

Co-Conspirators Sentenced

to a Total of More Than 100 Years

in Prison

Keith J. Jones was the leader of an Indianapolis-based fentanyl,

methamphetamine, and cocaine trafficking organization

that distributed at least 300 pounds of methamphetamine,

20 kilograms of fentanyl, and 50 kilograms of cocaine in the

Indianapolis area from September 2020 through 2022. Kevin

M. Backstrom was the Los Angeles-based drug supplier for

the organization. The investigation resulted in the indictment

and conviction of twenty-two defendants for their roles in

the organization’s drug trafficking activity, including Jones

and Backstrom. Jones was sentenced to life in prison after

a conviction for engaging in a continuing criminal enterprise,

conspiracy to distribute controlled substances, conspiracy to

launder monetary instruments, nine substantive drug trafficking

counts, and two counts of possession of a firearm by a convicted

felon. Backstrom was sentenced to 30 years in prison for

conspiracy to distribute controlled substances and conspiracy to

launder monetary instruments.

Learn more about this case.

Housing Authority Exec

and Others Sentenced

to Prison for Fraud Scheme

From approximately 2015 through 2019, Albert Smith, who

served as the Asset Manager Director of the Housing Authority

of South Bend (HASB), along with Tonya Robinson, the

Executive Director of HASB, and others, engaged in a fraud

scheme surrounding contract payments that stole federal

housing funds. As part of the scheme, HASB checks were

issued to four outside contractors who did not perform work

for the HASB. The checks were deposited by the contractors,

who then withdrew a portion in cash and hand delivered it

back to the co-conspirators. Smith and Robinson were involved

in creating hundreds of fraudulent documents to cover up

the scheme and conceal the money trail. In May 2024, Smith

was sentenced to 135 months in prison and two years of

supervised release and was ordered to pay $3,030,940 in

restitution. Robinson was sentenced to 108 months in prison

and two years of supervised release and was ordered to pay

$3,236,949.97 in restitution to the victims of the offense. Four

others were sentenced in connection with this scheme.

Learn more about this case.

Fraudulent Tax Return Preparer

Sentenced to Prison Term

From 2017 through 2021, Rodney “Hot Rod” Smith, a tax

return preparer and the owner of Xpert Tax Services, prepared

fraudulent tax returns for his clients. Smith falsified client returns

making them eligible for the Earned Income Tax Credit, which

fraudulently increased their tax refunds. Smith’s scheme resulted

in an estimated tax loss of $3.3 million. In 2020, the IRS executed

a search warrant at Smith’s business, where he admitted to

special agents he knowingly violated federal tax laws. Smith

then continued his criminal conduct by preparing false returns

for clients in 2021. Smith was sentenced in February 2024 to 41

months in prison followed by a one-year supervised release, and

he was ordered to pay $216,643 in restitution.

Learn more about this case.

Northern Area

ILLINOIS: Chicago, Downers Grove, Matteson, Orland Park, Peoria, Rockford, Schiller Park, Springfield

2024 | IRS-CI ANNUAL REPORT

INDIANA: Carmel, Evansville, Fort Wayne, Indianapolis, Merrillville, South Bend

MINNESOTA: Duluth, Rochester, St. Paul

WISCONSIN: Eau Claire, Green Bay, Madison, Milwaukee

Chicago

ChicagoFieldOffice@ci.irs.gov

THE CHICAGO FIELD OFFICE

covers several major cities and

areas dotting the coastline of

Lake Michigan, Lake Superior,

and the Mississippi River. The

Chicago Field Office has 21 posts

of duty with over 165 special

agents and professional staff

across Minnesota, Wisconsin,

Indiana, and most of Illinois.

Second to none, the Chicago

Field Office tackles tax fraud as

its top priority and investigates

a wide array of financial crimes,

including money laundering

from narcotics trafficking and

COVID-19 fraud. Chicago’s

special agents also work with

their law enforcement partners

to lend their financial expertise

to task forces, including HIDTA,

OCDETF, JTTF, cybercrimes, and

political corruption. Serving over

235,000 square miles, the office

is consistently building on and

bolstering its relationships with

other law enforcement partners,

the U.S. Attorneys’ Offices, and the

public to identify, investigate, and

refer quality cases for prosecution.

Chicago field office hosts Citizens Academy for students.

Special agent collects evidence at a search warrant.

Special agents participates in memorial run to Chicago’s Soldier Field to honor the memory of Special Agent

Lilia M. Acosta.

View FO Cases

Special agents look for evidence during a search warrant.

Northern Area

ILLINOIS: Chicago, Downers Grove, Matteson, Orland Park, Peoria, Rockford, Schiller Park, Springfield

2024 | IRS-CI ANNUAL REPORT

Chicago field office participates in Take Your Child to Work Day.

INDIANA: Carmel, Evansville, Fort Wayne, Indianapolis, Merrillville, South Bend

MINNESOTA: Duluth, Rochester, St. Paul

WISCONSIN: Eau Claire, Green Bay, Madison, Milwaukee

Cincinnati

CincinnatiFieldOffice@ci.irs.gov

THE CINCINNATI FIELD OFFICE

covers the states of Ohio and

Kentucky, which contain two

federal judicial districts in

each state. Serving a combined

population of over 16 million

Americans, the Cincinnati

field office works closely with

our federal, state, and local

law enforcement partners to

investigate and prosecute tax,

money laundering, and related

financial crimes. Our special agents

and professional staff provide

unparalleled financial expertise

to lead investigations against

the most egregious white-collar

criminals. Home to the Kentucky

Derby and the Rock and Roll Hall of

Fame, the Cincinnati field office’s

territory covers a wide range of

communities, from large urban

areas to small rural towns. Together

with the U.S. Attorney’s Office, our

investigations have a significant

impact on regional and national

enforcement priorities that include

income tax evasion, questionable

tax refund/return preparer fraud,

COVID-19 relief fraud, public

corruption, cybercrimes, and

narcotics related crimes.

Payroll Processor Sentenced

to More Than 8 Years in Prison

for Check-Kiting Scheme

and approximately $328,000 seized from bank accounts. In

February 2024, Jones was sentenced to 84 months in prison

and two years of supervised release for wire fraud, aggravated

identity theft, and money laundering. Jones was also ordered to

pay restitution in the amount of $2,929,519.

Najeeb Khan, of Edwardsburg, Michigan, owned and operated

Interlogic Outsourcing Inc (IOI), a payroll processing company

that provided services to approximately 6,000 clients. In

2014, Khan operated a check-kiting scheme, where he used

his company’s business bank accounts to fraudulently obtain

funds from various financial institutions, including KeyBank.

Khan used these funds to support the growth of his payroll

processing business and fund his lifestyle, which included

the purchase of automobiles, aircraft, and vacation homes.

Khan also failed to report income gained from the check-kiting

scheme on his annual tax returns. In November 2023, Khan

was sentenced to 97 months in prison and three years of

supervised release for bank fraud and tax evasion. Khan was

also ordered to pay over $150 million in restitution to the

victims of his bank fraud and to the IRS.

Learn more about this case.

Holland Woman Sentenced

to 7 Years in Prison for Stealing

Almost $3 Million in Tax Refunds

In January 2020, Teresia M. Jones, of Holland, Ohio, defrauded

the IRS through a wide-ranging tax refund scheme, where she

submitted fraudulent tax filings using stolen identities and

claimed millions of dollars in illegitimate tax refunds. Jones then

used these funds for personal spending, including the purchase

of real property and a Cadillac Escalade for over $150,000.

The Cadillac Escalade was forfeited to the government,

along with a Dodge Ram truck, two parcels of real property,

Drug Trafficker Sentenced

to 16 Years in Prison

From 2015 to 2018, Michael J. Moore, of Inglewood, California,

conspired with six women to distribute methamphetamine

and oxycodone into Ohio. In total, the group obtained and

distributed between 5,656 and 100,000 30-milligram

oxycodone pills, which were then sold for $20 to $30 per pill.

Moore and the others laundered the drug proceeds by opening

bank accounts at several financial institutions, making money

transfers, and concealing and flying cash on commercial flights.

Moore was involved in the shipping and distribution of at least

3,114 grams of methamphetamine that was approximately 98

percent pure. In February 2024, Moore was sentenced to 192

months in prison for conspiracy to launder the drug trafficking

proceeds and other drug charges.

Learn more about this case.

Employee Sentenced to 5 Years

in Prison for Embezzling More

Than $26 Million

Yi He, of Powell, Ohio was a long-time, trusted employee of

a furniture company that provides furniture to retailers like

Wayfair, Overstock, Kohls, Walmart, and Ashley Furniture.

Yi was solely responsible for payroll and payroll tax-related

duties for the company. From 2018 until 2022, Yi embezzled

more than $26 million from his employer. Among other

methods, Yi transferred money from the business’s bank

accounts to his personal accounts and covered up his actions

by removing the transaction from the bank account statements.

Yi failed to accurately report his income to the IRS, causing

a tax loss of approximately $6.8 million. In April 2024, Yi

was sentenced to 60 months in prison and was ordered to

pay restitution of over $33 million to his victims, including

$6,827,444 to the IRS.

Learn more about this case.

COVID Fraud Leads to Over

7 Years in Prison and $4.2 Million

in Restitution

From March 2020 through December 2020, Terrence L. Pounds

of Holland, Ohio, and his co-defendants devised a scheme to

steal over $4.2 million from the Small Business Administration

(SBA) in connection with the COVID-19 Pandemic relief funding.

Pounds submitted false applications for Economic Injury

Disaster Loans (EIDL) and Paycheck Protection Program (PPP)

loans. Using his identity and the identities of his coconspirators,

Pounds made false statements on at least 12 loan applications

and attempted to obtain more than $9.5 million. The SBA

paid out roughly $4.2 million. Pounds used his share of the

proceeds from the scheme to purchase high-end vehicles,

including a BMW X4. Pounds was sentenced to 94 months in

prison for conspiracy to commit wire fraud, wire fraud, and

money laundering. He was also ordered to pay $4,239,940.43 in

restitution to the SBA.

Learn more about this case.

View FO Photo Gallery

Northern Area

KENTUCKY: Bowling Green, Lexington, Louisville

2024 | IRS-CI ANNUAL REPORT

OHIO: Akron, Canton, Cincinnati, Cleveland, Columbus, Dayton, Independence, Toledo

Cincinnati

CincinnatiFieldOffice@ci.irs.gov

THE CINCINNATI FIELD OFFICE

covers the states of Ohio and

Kentucky, which contain two

federal judicial districts in

each state. Serving a combined

population of over 16 million

Americans, the Cincinnati

field office works closely with

our federal, state, and local

law enforcement partners to

investigate and prosecute tax,

money laundering, and related

financial crimes. Our special agents

and professional staff provide

unparalleled financial expertise

to lead investigations against

the most egregious white-collar

criminals. Home to the Kentucky

Derby and the Rock and Roll Hall of

Fame, the Cincinnati field office’s

territory covers a wide range of

communities, from large urban

areas to small rural towns. Together

with the U.S. Attorney’s Office, our

investigations have a significant

impact on regional and national

enforcement priorities that include

income tax evasion, questionable

tax refund/return preparer fraud,

COVID-19 relief fraud, public

corruption, cybercrimes, and

narcotics related crimes.

Special agent participates in outreach event at local high school.

Special agent attends recruiting event.

Special Agent in Charge interviewed concerning filing season.

Special agents conduct defensive tactics training.

Special agents hold briefing before a search warrant.

View FO Cases

Northern Area

KENTUCKY: Bowling Green, Lexington, Louisville

2024 | IRS-CI ANNUAL REPORT

OHIO: Akron, Canton, Cincinnati, Cleveland, Columbus, Dayton, Independence, Toledo

Detroit

DetroitFieldOffice@ci.irs.gov

THE DETROIT FIELD OFFICE’s area

of responsibility encompasses the

state of Michigan and its two judicial

districts. The state of Michigan is

surrounded by the Great Lakes,

which are the largest surface

freshwater system on the Earth.

With Michigan’s diverse cultures

and proximity to the Canadian

border, Detroit’s special agents

are involved in a variety of criminal

investigations, including traditional

tax, corporate fraud, COVID-19

fraud, and money laundering.

To address the various priorities

impacting Michigan, agents are

embedded in a variety of task forces

with our law enforcement partners,

such as the JTTF, public corruption,

and OCDETF, among others.

View FO Photo Gallery

Grosse Pointe Park Man Sentenced

for Money Laundering, Caused Tax

Loss of Over $3.3 Million

From 2008 to 2017, Matthew D. Adams was the owner of MDA

Property Services, and he used the company as a front to sell

illegal narcotics. Adams failed to report millions of dollars of

income generated from the sale of the narcotics on his income

tax returns for the years 2013 through 2016, and he failed to

file his 2017 tax return. In total, Adams received approximately

$5.3 million from his business. He deposited some of the checks

into his personal and business bank accounts, and he cashed

the remainder. Adams only informed his tax preparer about the

deposits in one of the bank accounts, which caused the preparer

to file fraudulent tax returns. Adams used over $1 million of

his unreported income to purchase real estate and spent over

$1.25 million on other expenses, such as multiple classic

and luxury cars, private flights, golfing, jewelry, gambling,

court-ordered child support, hotels, and a firearm. In March

2024, Adams was sentenced to 36 months in prison and three

years of supervised release and was ordered to pay $3,354,973

in restitution to the IRS.

Learn more about this case.

Unemployment Fraud Scheme Stole

Over $1 Million, Pennsylvania Man

Sentenced to 51 Months in Prison

During the COVID-19 pandemic, Adrian Fluellen used stolen

personal identifications to file hundreds of false unemployment

claims with Michigan, Pennsylvania, and Maryland. Fluellen then

received hundreds of Bank of America prepaid debit cards in the

names of those individuals, which were loaded with roughly $1

million in Pandemic Unemployment Assistance funds. Fluellen

successfully unloaded more than $930,000 from the cards via

cash withdrawals and purchases that included jewelry, drugs,

at least one vehicle, and a firearm. In April 2024, Fluellen was

sentenced to 51 months in prison and three years of supervised

release and was ordered to pay more than $900,000 in

restitution to the states of Michigan and Pennsylvania for wire

fraud and conspiracy to commit wire fraud.

Learn more about this case.

Former President of Public School

Board Sentenced for Bribery and

Tax Evasion

From 2012 through 2018, Albert Morrison was the elected

president of the Madison District Public Schools’ Board of

Education. Morrison’s long-time friend, John David, was an

owner of a building maintenance and reconstruction company,

Emergency Restoration. During the years 2012 through

2018, David paid Morrison over $561,000 to use his position

as president to secure work for the restoration business.

Emergency Restoration was awarded over $3.1 million in

maintenance and construction projects from the Madison

District Public Schools. Morrison spent the bribe money on

personal luxuries, such as vacations in Florida and a boat slip.

He also failed to report this extra stream of income on his

personal income tax returns. In November 2023, Morrison was

sentenced to 45 months in prison and two years of supervised

release for tax evasion and conspiracy to commit federal

program bribery. He was also ordered to pay $118,200 in

restitution to the IRS.

Learn more about this case.

Girlfriend of California Drug Kingpin

Sentenced to Over Three Years in

Prison for Money Laundering

Teeauna White conspired with her boyfriend to conceal his

drug money by setting up multiple businesses and controlling

access to the bank accounts. Members of their drug organization

deposited drug proceeds into the bank accounts and delivered

hundreds of thousands of dollars in bulk cash to White.

Together, White and her boyfriend reaped the benefits of

the drug trade, using the money to fund their lavish lifestyle.

They purchased a Porsche Panamera, a Bentley, and a

Mercedes-Benz. White paid off their house in less than six

months by funneling cash from drug sales through a labyrinth of

bank accounts. They also used the drug money to buy expensive

jewelry, including diamond and gold pendants. White often

bragged on social media, posting pictures of her cars, jewelry,

and lavish vacations. In December 2023, White was sentenced

to 42 months in prison and three years of supervised release.

She was also ordered to pay a money judgment of $295,575 and

forfeit her interest in a laundered home to the United States.

Learn more about this case.

Dark Web Drug Trafficker Sentenced

to Over 10 Years in Prison

Victor Hernandez ran a dark web site using the moniker

“opiateconnect,” selling illicit drugs like cocaine and various

counterfeit drugs. These counterfeit pills were made to look

like Alprazolam, which is used to manage panic and anxiety

disorders, but they were in fact uncontrolled research chemicals

not intended for human consumption. The investigation led

to the execution of a search warrant at Hernandez’s house in

Detroit, where agents discovered a clandestine drug lab capable

of producing upwards of 20,000 pills per hour. They also

found firearms, a “tub” containing approximately 600 grams

of cocaine, thousands of pressed counterfeit Alprazolam pills,

$340,000 in cash, and more than $1 million in cryptocurrency.

In June 2024, Hernandez was sentenced to 130 months in

prison and four years of supervised release and was ordered

to pay a $3.1 million money judgment to the United States for

conspiracy to distribute illicit substances, conspiracy to launder

monetary instruments, distribution of counterfeit pills, and the

use of firearms in furtherance of a crime.

Learn more about this case.

Northern Area

MICHIGAN: Ann Arbor, Detroit, East Lansing, Flint, Grand Rapids, Pontiac, Traverse City

2024 | IRS-CI ANNUAL REPORT

Detroit

DetroitFieldOffice@ci.irs.gov

THE DETROIT FIELD OFFICE’s area

of responsibility encompasses the

state of Michigan and its two judicial

districts. The state of Michigan is

surrounded by the Great Lakes,

which are the largest surface

freshwater system on the Earth.

With Michigan’s diverse cultures

and proximity to the Canadian

border, Detroit’s special agents

are involved in a variety of criminal

investigations, including traditional

tax, corporate fraud, COVID-19

fraud, and money laundering.

To address the various priorities

impacting Michigan, agents are

embedded in a variety of task forces

with our law enforcement partners,

such as the JTTF, public corruption,

and OCDETF, among others.

View FO Cases

Special agents assist in providing security for the NFL Draft.

Members of the Detroit field office participated in the Toy Express.

Special agent presents at Institute of Management Accountants Student

Leadership Conference.

Special agents discuss Employee Retention Credit (ERC) with local

Members of Detroit field office participate in 2024 Detroit Maltz Challenge.

tax professionals.

Northern Area

MICHIGAN: Ann Arbor, Detroit, East Lansing, Flint, Grand Rapids, Pontiac, Traverse City

2024 | IRS-CI ANNUAL REPORT

New York

NewYorkFieldOffice@ci.irs.gov

As the nation’s largest field

office and CI’s flagship location,

THE NEW YORK FIELD OFFICE

conducts intricate financial

investigations in association

with the most dynamic U.S.

Attorneys’ Offices in the country.

To tackle the various threats

affecting the taxpayers of New

York, our diverse special agents

and professional staff provide

unparalleled financial expertise to

unravel domestic and international

tax evasion. In support of the

CI mission, our office also

investigates international and

domestic terrorism finance,

cybercrimes, money laundering,

public corruption, COVID-19 fraud,

market manipulation, corporate

and securities fraud, healthcare

fraud, mortgage fraud, bank

fraud, and money laundering

from international narcotics

trafficking. The New York Field

Office has four specialty groups,

one dedicated to support the Joint

Chiefs of Global Tax Enforcement

(J5), two Strikeforce groups, and

a group dedicated exclusively to

cybercrimes investigations.

View FO Photo Gallery

Medical Clinic Owner

Sentenced to 10 Years

in Prison for Insurance Fraud

From approximately 2008 through 2021, Bradley Pierre, of

New York, engaged in multiple fraud schemes totaling over

$60 million in losses and $1.5 million in tax fraud. Pierre and

co-conspirators defrauded automobile insurance companies

by exploiting “no-fault” provisions in the state of New York and

New Jersey that allowed insurance companies to pay claims

directly to medical service providers. The group falsified

insurance claims and claimed the businesses were owned

by physicians. Pierre embezzled over $20 million from the

clinics, received over a million dollars in kickbacks for steering

prescriptions to pharmacies, and engaged in bribery and deceit

to obtain information about potential clients. The scheme

generated millions for the firm, and $4 million was returned

to Pierre in the form of “marketing” arrangements. Pierre hid

income from the IRS by concealing multiple bank accounts

and disguising personal expenditures as business expenses.

Pierre’s tax evasion resulted in $1.5 million taxes due to the IRS.

He was sentenced to 120 months in prison and three years of

supervised release, and he was ordered to forfeit $3.5 million

and pay $1.5 million in restitution.

Learn more about this case.

Instagram Influencer Sentenced

to 84 Months in Prison for

Overlapping Fraud Schemes

From 2019 to 2021, Jebara Igbara, aka, “Jay Mazini,” ran a

popular Instagram account, portraying himself as a successful

investor and businessman. Igbara operated an investment fraud

scheme via Halal Capital LLC, targeting members of the MuslimAmerican community. He ran a Ponzi scheme and pocketed

money for personal expenses, luxury vehicles, and gambling.

Then, to pay his investors “returns,” he operated a second

scheme, advertising on social media he was willing to pay

above-market prices for various cryptocurrencies. He sent his

victims doctored images of wire transfer confirmations claiming

he had sent money for the cryptocurrency transactions, but he

never actually sent the payment. Igbara scammed investors

out of at least $8 million. In April 2024, Igbara was sentenced

to 84 months in prison for wire fraud, conspiracy, and money

laundering and was ordered to pay $10 million in forfeiture.

Learn more about this case.

Pharmacy Owners Ordered

to Pay More Than $18 Million

Related to Healthcare Fraud

Peter Khaim and his brother, Arkadiy Khaimov, were two

pharmacy owners engaged in a complex money laundering

conspiracy to launder the proceeds of a fraudulent health care

scheme involving over a dozen New York-area pharmacies that

they owned and controlled with other co-conspirators. The

brothers submitted millions of dollars in fraudulent claims to

Medicare during the COVID-19 pandemic. They concealed

over $18 million of their criminal proceeds by funneling money

through several shell companies. The proceeds were sent

from the sham pharmacy wholesale companies to Khaim,

Khaimov, their relatives, or their designees, in the form of

certified cashier’s checks and cash. They also sent proceeds to

companies in China for distribution to individuals in Uzbekistan.

In June 2024, Khaim was sentenced to 97 months in prison, and

his brother, Khaimov, was sentenced to 72 months in prison.

Both Khaim and Khaimov were ordered to pay more than $18

million in restitution and ordered to forfeit more than $12 million.

Learn more about this case.

Billionaire Chinese National

Sentenced for Straw Donor

Campaign Contribution Scheme

and Other Frauds

Hui Qin, a citizen of China who was listed on Forbes Magazine’s

List of Billionaires, operated SMI Culture, a Hong Kong-based

entertainment entity. Rather than disclose himself as the

actual donor, Qin agreed to reimburse individuals who made

contributions to several campaign committees on his behalf,

including state, local, and national campaigns. Straw donors

made approximately $11,600 in contributions on Qin’s

behalf, which caused the campaign committees to file false

contribution reports with the Federal Election Commission

in 2022. Additionally, Qin filed a false application to become

a legal permanent resident of the United States. Qin used an

alias to transfer more than $5 million from China to a U.S. bank

account, a portion of which was used to purchase a luxury

Manhattan apartment. In March 2024, Qin was sentenced to

seven months in prison after already serving seven months

incarceration. As part of his plea, he agreed to removal from the

United States immediately after sentencing.

Learn more about this case.

Former Law Enforcement Union

Official Sentenced to Prison for

Defrauding Union’s Annuity Fund

From 2012 to 2020, Kenneth Wynder Jr. and Andrew Brown

defrauded law enforcement officers union members. Wynder,

a former New York State Trooper, was the president of the Law

Enforcement Employees Benevolent Association (LEEBA), a

labor union for law enforcement officers employed by the City

of New York. Together, Wynder and Brown defrauded union

members by embezzling money intended to be used to fund

individual members’ retirement accounts. Wynder caused

the union to pay for his personal expenditures, including the

purchase of a Lexus and personal travel, and did not report

the additional income on his federal tax returns. During one

five-year period, Wynder and Brown embezzled more than

$500,000 from the individual retirement accounts, which

completely depleted the balance of certain members’ accounts.

Wynder also conspired with Steven Whittick, LEEBA’s former

treasurer and a former police officer for New York City’s

Department of Environmental Protection. Whittick previously

pled guilty to conspiring to commit tax evasion and making false

statements to law enforcement. Wynder was sentenced to 40

months in prison for the fraud scheme, personal i

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02 �� Message from the Chief