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Court Bars Florida CPA from Preparing Tax Returns
Court Watch | 2007/04/10 23:12

A federal judge has permanently barred Max Holcher of Naples, Fla., from promoting a scheme he calls "Tax Engineering" and from preparing federal income tax returns for others, the Justice Department announced today. According to the government complaint in the civil injunction suit, Holcher operates businesses known as Holcher & Company and Holcher CPA Group.

According to the government complaint, Holcher, a certified public accountant (CPA), helped customers claim improper tax deductions for such non-deductible personal expenses as home maintenance expenses, vacations, and personal vehicle expenses. Holcher allegedly also prepared tax returns for customers falsely reporting employment income as royalties in order to evade Social Security taxes. The permanent injunction order was signed by Judge John Steele of the U.S. District Court for the Middle District of Florida.

The court order requires Holcher to mail a copy of the injunction to all persons for whom he has prepared a federal tax return or form since 2002 and to provide the government with a list of his customers' names, addresses, e-mail addresses, phone numbers, and Social Security numbers.

Since 2001, the Justice Department's Tax Division has obtained more than 230 injunctions to stop the promotion of tax fraud schemes and the preparation of fraudulent returns. Information about these cases is available on the Justice Department Web site at http://www.usdoj.gov/tax/taxpress2006.htm.



Court: MySpace Postings are Free Speech
Court Watch | 2007/04/10 01:49

A judge violated a juvenile's free-speech rights when he placed her on probation for posting an expletive-laden entry on MySpace criticizing a school principal, the Indiana Court of Appeals ruled. The three-judge panel on Monday ordered the Putnam Circuit Court to set aside its penalty against the girl, referred to only as A.B. in court records.

"While we have little regard for A.B.'s use of vulgar epithets, we conclude that her overall message constitutes political speech," Judge Patricia Riley wrote in the 10-page opinion.

In February 2006, Greencastle Middle School Principal Shawn Gobert discovered a Web page on MySpace purportedly created by him. A.B., who did not create the page, made derogatory postings on it concerning the school's policy on body piercings.

The state filed a delinquency petition in March alleging that A.B.'s acts would have been harassment, identity deception and identity theft if committed by an adult. The juvenile court dropped most of the charges but in June found A.B. to be a delinquent child and placed her on nine months of probation. The judge ruled the comments were obscene.

A.B. appealed, arguing that her comments were protected political speech under both the state and federal constitutions because they dealt with school policy.

The Court of Appeals found that the comments were protected and that the juvenile court had unconstitutionally restricted her right of free expression.

There was no number for Shawn Gobert in publishing phone listings. The Associated Press left a message seeking comment Monday at Greencastle Middle School.



TV host pleads guilty in $20M bogus art scam
Court Watch | 2007/04/10 00:07

A La Canada Flintridge TV host who used a satellite cable show to sell fake prints supposedly signed by such artists as Picasso and Dali pleaded guilty today to federal charges. Kristine Eubanks, 49, is scheduled to be sentenced Sept. 24, when she faces up to 10 years in prison.

She and her husband, Gerald Sullivan, who pleaded guilty last week, admitted in their plea agreements that they conned more than 10,000 buyers through their "Fine Art Treasures Gallery" show, which aired Friday and Saturday nights on DirecTV and The Dish Network.

Despite the claims on the show, the supposed fine art prints were either bought by the couple or forged at a print shop, according to the government.

Eubanks and Sullivan, 51, fabricated certificates of authenticity and appraisals, and the works bore fake signatures, according to the government.

In pleading guilty, the couple also admitted running up the prices of the fake works by creating fake bids for live auctions.

Eubanks entered her guilty plea to tax evasion and one count of conspiracy. Sullivan pleaded guilty to conspiracy and failing to file tax returns, and faces up to six years in prison, according to the U.S. Attorney's Office.

Sullivan, whose sentencing is also set for Sept. 24, is free on bond. His wife, who was on probation when arrested in the art case, remains in custody.

Eubanks' attorney, Donald Randolph said outside court that his client "acknowledged her guilt in these actions today."

Randolph said he will attempt to convince U.S. District Judge Florence- Marie Cooper to "take other factors" from his client's life into consideration at sentencing, but he declined to elaborate.

In addition to the possible prison time, the couple has agreed to forfeit nearly $4 million and various pieces of art seized during the investigation.



Olympic gold medallist admits bank fraud
Court Watch | 2007/04/10 00:06

Montgomery, 32, was indicted for conspiracy for depositing or trying to deposit three checks worth $775,000 into an account he controlled. He was one of 11 co-conspirators named in the indictment, including Montgomery's former track coach, 1976 Olympic gold medallist Steven Riddick. Montgomery pleaded guilty to one count of conspiracy and two counts of bank fraud, for which he could face up to 46 months in prison. His lawyers said the guilty plea "reflects his minor role in the charged bank fraud conspiracy."

Montgomery's plea agreement does not force him to cooperate with prosecutors, and his lawyers said he has no plans to testify in the trial of the other defendants, scheduled to begin on Tuesday at U.S. District Court in Manhattan.

"I sincerely regret the role I played in this unfortunate episode. I have disappointed many people, and for that I am truly sorry," Montgomery said in a statement.

The scheme involved a couple, Douglas Shyne and Natasha Singh, who are accused of receiving stolen checks, altering legitimate checks and receiving copies of checks that had been processed by bank employees, which they then counterfeited, prosecutors said.

The conspiracy involved approximately 20 checks totaling more than $5 million, prosecutors said.

In 2000, Montgomery won a gold medal as a member of the United States 4x100-metre relay team. Two years later, he set a 100m world record of 9.78 seconds, but the time was erased from the record books after the US antidoping agency found him to have received steroids. He retired from the sport immediately afterward.



Court Approves Water Project Near Mexican Border
Court Watch | 2007/04/09 01:55

An appeals court has ruled that the federal government can line a major canal with concrete to stop huge leaks, rejecting arguments that growers across the border in Mexico need the leaking water for their crops.
Proponents of lining the All-American Canal say it would save 67,000 acre-feet of water, enough to meet the needs of more than 500,000 homes in fast-growing San Diego County.

Opponents, who sued to block the project, said it would devastate farmers in the Mexicali Valley.

A three-judge panel of the 9th U.S. Circuit Court of Appeals ruled in favor of a law signed by President Bush last year that orders the Bureau of Reclamation to start the project without delay.

The court's ruling lifts an injunction granted last year when opponents sued.

Although more appeals are possible, the project's supporters said they hoped Friday's decision resolves the issue.

"This is truly a Good Friday," said Daniel S. Hentschke, a San Diego County Water Authority attorney. "This is enormously important for San Diego and the entire state."

The 82-mile-long canal was completed in 1942 to carry water west from the Colorado River. It irrigates crops along both sides of the border in an area about 100 miles east of San Diego.

Opponents of the $200 million project include both environmentalists and business representatives. They said lining a 23-mile section of the canal will dry up tens of thousands of acres of Mexican farmland, allow Mexican wells to become polluted and threaten migratory birds by eliminating wetlands. That could cause significant job losses and other economic problems on both sides of the border, they said.

The court said Mexico already takes 1.5 million acre-feet of Colorado River water a year under the terms of a 1944 treaty and is entitled to no more.




Man Who Abused Puppy Sentenced to Jail
Court Watch | 2007/04/07 01:23

A man has pleaded guilty to animal cruelty charges after authorities said he told workers at a local shelter that he was getting rid of his Doberman puppy because his hands hurt from hitting it.

Isaak Gowhari, 34, of Los Angeles, was sentenced Thursday to 45 days in county jail after entering his plea to the misdemeanor counts. The judge also barred Gowhari from owning an animal for three years.

Gowhari could not immediately be reached for comment. His telephone number was unlisted.

Authorities said Gowhari came under investigation after he gave Gracie, a 7-month-old Doberman, to an animal shelter. The puppy had newly broken ribs and injuries to its legs.

"Gowhari told the animal shelter workers that he was surrendering the dog because his hands hurt from hitting the animal," said animal control Officer Ernesto Poblano.

Photos seized by investigators showed Gracie's snout taped shut and her legs bandaged.

"At times, Gowhari did get Gracie medical care for the injuries he inflicted, but he apparently did not follow up on treatments and the injuries became aggravated and did not heal," Poblano said.

Gracie recovered from her injuries and has since been adopted.



Man Pleads Guilty To Running Off With 13-Year-Old Girl
Court Watch | 2007/04/07 01:15

A 22-year-old man who ran off with his boss's 13-year-old daughter will be heading to federal prison. Eric Sanchez was arrested on a Greyhound bus in St. Louis last June when federal agents boarded their bus and pulled him and the girl off. The girl is back with her parents in Norwalk. At the time, Sanchez worked for the landscaping company owned by the girl's family.

Sanchez, a Mexican citizen, on Wednesday waived his right to a federal grand jury indictment and pleaded guilty to crossing state lines with a minor for the purpose of engaging in sexual activity.

Sanchez is expected to be sentenced June 22 to at least five years and as many as 30 in federal prison. U.S. District Judge Janet C. Hall advised Sanchez that after he completes his prison term he will be deported.

Assistant U.S. Attorney James K. Filan Jr. told the judge that the teenager admitted having a sexual relationship with Sanchez.

On June 10, Filan said the pair left Norwalk and traveled to New York City, where they boarded a bus with the intention of going to California, where they would live with Sanchez's sister.

The girl's parents contacted authorities, who quickly learned from one of her friends that she had telephoned from New York.

Filan said FBI agents were able to trace telephone calls she made to a bus station in Indiana and learned the bus was headed to St. Louis. On June 14, agents stopped the bus, boarded it and arrested Sanchez, the prosecutor said.



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