June 25, 2013 — The government’s Financial Fraud Enforcement Task Force includes numerous federal agencies and nearly a hundred U.S. attorneys’ offices in addition to other partners on the state and local level. In just the last few years, the dedicated work of the Task Force has helped the Justice Department to bring almost 10,000 financial fraud cases to justice. The cases involved a wide variety of financial crimes that harm investors in the securities market and others.
The government is often tipped off to financial crimes involving tax fraud by the IRS Whistleblower Office, which was created by the Tax Relief and Health Care Act of 2006. By collaborating with the government, whistleblowers with unique information about tax fraud may be eligible for a financial reward for their efforts in notifying the government. Tipsters may be awarded 15 to 30 percent of the amount the IRS recovers, depending on several factors.
Michigan Businessman Pleads Guilty to Bank Fraud Charges
Mosii Mays Blackwell, a Detroit, Michigan businessman, has pleaded guilty to charges of bank fraud and obstructing the IRS. According to the U.S. Justice Department, between April 2004 and December 2012, Blackwell hid from the IRS more than $4.5 million in gross receipts from businesses Blackwell operated in the Detroit area. The businesses included the following:
• Moci Jeans
• Detroit Manufacturing Group
• Renaissance Contractors
• Greentree Entertainment Group, LLC
• Arzel Corp.
In addition, the Justice Department alleges that Blackwell was engaged in bank fraud by causing the submission of a loan application to a mortgage lender in which it was falsely claimed that the applicant worked for one of Blackwell’s companies with a salary of $18,000 a month.
At sentencing Blackwell could receive a 33-year prison sentence as well as a fine of as much as $1,250,000.
Employee Insiders Tip Off IRS Concerning Employers’ Tax Fraud
Businesses that neglect to report income should expect that eventually, a conscientious employee is bound to question the practice and notify the government. Before contacting the IRS, though, informants should speak with an experienced whistleblower lawyer to learn how the process works. The financial fraud attorneys with Waters & Kraus offer tipsters the legal representation they deserve. Contact us by email or phone our knowledgeable attorneys at 855.784.0268 to discuss how we can safeguard your rights.
