# 02 ���� Message from the Chief > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/agency%3Airs%3A9092ebb8f57e9896 ## Record - **Collection:** Agency decision - **Document type:** Agency decision ## Text 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 1 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 2 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 3 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 X 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, In this role he 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 he 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, Follow us for more information and to stay updated on CI. 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 an 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. 4 Organization Chart of 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. X 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 5 Cybercrime Organization Chart of IRS-CI and Forensic Services X 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 6 Organization Chart of IRS-CI Advanced Analytics and Innovation X 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 7 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 X 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 8 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). X 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 9 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 13 % FinCEN DATA 1,000 20 % IRS-CI 3% STATE/ LOCAL GOV’T 6% PUBLIC 27% OTHER FEDERAL AGENCIES 4 % 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 10 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 11 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 12 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 68 CONVICTIONS 2024 | IRS-CI ANNUAL REPORT 61 Mos AVERAGE SENTENCING >$925M ASSETS SEIZED 13 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. 14 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 15 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). 16 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, 17 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. 18 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 19 X 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. 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 20 X 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 21 X 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 22 X 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 23 X 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 24 X 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 25 X 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. 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 26 X 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 27 X 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 28 X 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 29 X 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 30 X 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. [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A9092ebb8f57e9896. Public record. Not legal advice.