Unusual Tithing Sought by Grand Sheik of Moorish Temple Nets 68 Month Sentence

[jcolvin2]

https://www.justice.gov/usao-ndil/pr/se ... n-scheming

Department of Justice
U.S. Attorney’s Office
Northern District of Illinois

FOR IMMEDIATE RELEASE
Monday, September 11, 2017
Self-Proclaimed “Grand Sheik” of Moorish Temple Sentenced to Nearly 6 Years in Prison for Scheming to Defraud the IRS out of $3.2 Million

CHICAGO — The self-proclaimed “Grand Sheik” of a Moorish temple in Chicago has been sentenced to nearly six years in federal prison for causing the Internal Revenue Service to issue more than $3.2 million in fraudulent tax returns.
 
MARCEL A. WALTON filed three fraudulent returns seeking $900,000 in refunds, causing the IRS to issue him more than $300,000. Walton also recruited individuals, including the elderly and homeless, to join a Chicago branch of the Moorish Science Temple of America and file similarly fraudulent returns on the false pretense that temple members were entitled to remuneration from the United States government for its purported use of Moorish lands. Walton claimed to be the “Grand Sheik” of the Chicago branch of the temple. At least 17 individuals filed nearly 50 returns seeking more than $15 million in refunds, ultimately obtaining more than $3.2 million from the IRS.
 
Walton, 47, of Chicago, pleaded guilty last year to one count of mail fraud. U.S. District Judge Thomas M. Durkin on Friday imposed the 68-month sentence in federal court in Chicago.
 
The sentence was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
 
“Walton exploited a vulnerability in our tax system and filed blatantly false trust tax returns,” Assistant United States Attorney Carol A. Bell argued during the sentencing hearing. “He used his position to recruit individuals to further his tax scheme.”
 
In 2010 and 2011, Walton told numerous individuals that, if they became members of the temple, they could claim the money purportedly owed to the Moors by the federal government. Walton told the potential recruits that the Moors were the original discoverers of America and that a Moorish prophet was given a deed to lands making up North America. Walton executed the scheme by preparing and causing the preparation of trust or estate tax returns for himself and the others that contained false information regarding the purported trust’s income, fiduciary fees, exemptions and federal tax withheld.
 
Walton stood to gain from the returns filed by his temple members because he instructed them to pay him ten percent of the money they received from the IRS through the filing of the fraudulent returns. One of the temple members paid Walton $90,000 after receiving $900,000 in refunds from the IRS in 2010.
Topic(s): 
Tax
Component(s): 
USAO - Illinois, Northern
Updated September 11, 2017

[Jeffrey]

Not stated in the press release but I'm assuming it's 1099 OID scam?

[notorial dissent]

That is what it sounds like.

[morrand]

Not stated in the press release but I'm assuming it's 1099 OID scam?

According to the indictment, it was a 1041 scheme.

Incidentally, I skimmed the Cook County Recorder of Deeds's office for anything related, often a winning technique where Moorish Science Temple shenanigans are involved. I didn't find much, searching by name: a 2003 letter from Allstate, offering 50% of damages after Walton crashed while traveling in the parking lane. And a "Dissolution" from March, 2015, which reads in part:

NOW COMES the Petitioner, [JANE DOE EL], in her proper person and in her own right, and makes this affidavit to this court of record for Dissolution of Marriage Obligation and states as follows:
...
2. The parties were lawfully married on February 18, 2012 and the marriage was recorded in Cook County, Illinois.

3. Affiant [Doe] is 35 years of age and is a member of the Moorish Science Temple of America.
...
5. Obligor [Walton] is 45 years of age and is employed at Chicago Park District.

6. The Obligor was not free to marry ab initio, as he was married to [Rebecca Roe] and not ever divorced. Obligor lied to Affiant about the existence of a previous Marriage Obligation.
...
WHEREFORE, the affiant, [Jane Doe El], corrects the wrongs caused by lies that have led to breech [sic] in Moslem Law:
A. Dissolving the obligation of the parties,
[etc.]

Yikes. Perhaps we just found out who dropped the dime on Mr. Walton. The "court of record" is, apparently, the Recorder of Deeds, not the circuit courts. Though this is in roughly the right form, I don't think it ever saw the inside of a court house. I'm editing out the names of the two women involved, as, if this is true, they've both gone through enough already and don't need Google reminding them. It's Cook County document #1508213064, though, if anyone wants to go see it.

Other than a bunch of other Moorish Science cruft signed by "Sheik Walton-El," who may or may not be the same person (there are a bunch of Walton-Els who come up in a record search), not much else.