55 indicted in income tax fraud scheme
SANTA ANA — The owners of two Southern California firms were among 55 people indicted by a federal grand jury in a $250 million income-tax fraud scheme claiming refunds were available through a secret government account, prosecutors and the Internal Revenue Service said Monday.
The defendants also claimed the United States was bankrupt and the country actually was owned by England.
The IRS investigation dubbed Operation Stolen Treasures targeted Fontana-based Old Quest Foundation Inc. and Rancho Cucamonga-based De la Fuente and Ramirez and Associates for filing federal income-tax returns with bogus claims for refunds.
There are 32 federal indictments, most alleging conspiracy to defraud the United States.
Hundreds of false tax returns seeking refunds were filed with the IRS. Refund checks for $5 million went out in error, IRS Special Agent Felicia McCain said Monday.
Eighteen defendants were arrested Friday, and 10 defendants are fugitives or agreed to surrender Monday. Twenty-seven defendants will get a summons to appear for arraignment in coming weeks.
CIA contractor faces felony assault count
DENVER — Prosecutors have filed a felony assault charge against a CIA contractor accused of getting into a fight over a parking space in Colorado months after he was involved in a fatal shootout in Pakistan.
Raymond Davis, 37, was arrested Saturday after an altercation outside a bagel shop in Highlands Ranch, a community south of Denver where he lives.
Prosecutors announced Monday that Mr. Davis would be charged with second-degree assault, which carries a possible prison term of five to 16 years.
In January, Mr. Davis said he shot two Pakistani men who tried to rob him in Lahore. He was released in March under a deal in which the victims’ families agreed to accept $2.34 million in “blood money” under Islamic tradition.