Monty Ervin -Self Proclaimed Governor of Alabama- Convicted

[jcolvin2]

http://www.justice.gov/opa/pr/2011/Nove ... -1459.html

Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASEFriday, November 4, 2011
Self-Proclaimed “Governor” of Alabama and Wife Convicted of Tax Fraud

WASHINGTON – A federal jury in Montgomery, Ala., today convicted Monty Ervin and Patricia Ervin of conspiracy to defraud the United States and three counts of tax evasion, the Justice Department announced. The jury also convicted Patricia Ervin of one count of structuring transactions to avoid bank reporting requirements. The jury’s verdict culminated a two-week trial that began Oct. 25, 2011, in Dothan, Ala.

Based on the evidence introduced at trial, the Ervins amassed hundreds of investment properties over the last decade, receiving more than $9 million in rental income. Despite receiving this income, the couple paid nothing in federal income taxes. When confronted by the Internal Revenue Service (IRS) in 2006, the Ervins proclaimed that they were not United States citizens, and as “sovereigns,” did not consider themselves subject to federal or state law.

Monty Ervin and Patricia Ervin also filed numerous documents in probate court renouncing their U.S. citizenship. In one such filing, Monty Ervin declared himself the “governor” of Alabama in its “original jurisdiction.” The Ervins had a license plate on their vehicle which law enforcement witnesses testified was associated with a “sovereign citizens” organization.

The Ervins owned and managed Southern Realty, a property management company in Dothan. As the evidence showed at trial, the couple concealed their assets from the IRS by placing investment properties into the names of nominees – “trusts” and “trustees.” The “trustees” named on property deeds testified that they were not involved in the sale or purchase of the properties and that the Ervins “stamped” their signatures onto official property records. Patricia Ervin also structured deposits into Southern Realty’s bank account in an effort to evade federal currency reporting requirements.

In addition to hundreds of real estate investment properties, the evidence also showed that the Ervins had amassed beachfront condominium units in their own names including a $1.3 million unit they paid for in cash and, when investigated by the IRS, transferred those properties into the names of bogus “trusts” and “trustees.” Additionally, the government introduced into evidence $350,000 of gold coins apparently buried in their yard.

The Ervins were indicted by a federal grand jury in Montgomery in February 2011. In March, Monty Ervin was arrested by a U.S. Marshal’s Service Fugitive Task Force in Naples, Fla., with a notebook containing the latitude and longitude coordinates of an island off the coast of Honduras.

Sentencing for both defendants is scheduled for Jan. 23, 2012, before the U.S. District Court Judge Myron Thompson. Patricia Ervin faces a maximum of 25 years in federal prison and a maximum fine of $1.25 million. Monty Ervin faces a maximum of 20 years in federal prison and a maximum fine of $1 million.

This case was investigated by IRS-Criminal Investigation and is being prosecuted by Tax Division Trial Attorneys Michael Boteler and Justin Gelfand, and by Assistant U.S. Attorney Todd Brown of the Middle District of Alabama.

[Doktor Avalanche]

This is almost Van Peltian in scope.

[ArthurWankspittle]

Should be plenty of property available to get the taxes and fines from too. Nothing like building a property empire by not paying taxes only to have it all sold at repo prices.

[LPC]

Should be plenty of property available to get the taxes and fines from too.

Most real estate investors are leveraged, which means that there will be mortgages on the properties.

And, for properties acquired during the recent housing bubble, the mortgages might be more than what the properties are now worth.

The $9 million in rental income is probably gross, and not net. In fact, after deducting interest, depreciation, and other expenses, it's possible that the Ervins would have owed very little in income tax, which might explain why they were charged with conspiracy to defraud and structuring, but not tax evasion. (Although the lack of any charge for willful failure to file is puzzling.)

[Lambkin]

15 pages of Ervin's letters to the IRS accompany this article.

http://tpmmuckraker.talkingpointsmemo.c ... _fraud.php

[jcolvin2]

Ten Year Sentence!

http://www.justice.gov/opa/pr/2012/May/12-tax-683.html

Department of Justice
Office of Public Affairs

FOR IMMEDIATE RELEASE
Tuesday, May 29, 2012Self-proclaimed “Governor” of Alabama Sentenced to Ten Years in Federal Prison for Tax Fraud

Monty Ervin and Patricia Ervin, owners of Southern Realty in Dothan, Ala., were sentenced today to federal prison for conspiring to defraud the United States and tax evasion, the Justice Department and Internal Revenue Service (IRS) announced. After a two-week trial that began Oct. 25, 2011, a federal jury in Montgomery, Ala., convicted the Ervins of one count of conspiracy and three counts of tax evasion. The jury also convicted Patricia Ervin of one count of structuring transactions to avoid bank reporting requirements. Monty Ervin was sentenced to 120 months in prison; Patricia Ervin was sentenced to five years of probation, with the condition that she spend 40 consecutive weekends in jail. In sentencing the Ervins, the court found that Monty Ervin was the leader and organizer of the conspiracy and exercised control over Patricia Ervin.

Based on the evidence introduced at trial, the Ervins amassed hundreds of investment properties over the last decade, receiving more than $9 million in rental income. Despite receiving this income, the couple paid no federal income taxes. When confronted by the IRS in 2006, the Ervins proclaimed that they were not United States citizens, and as “sovereigns,” did not consider themselves subject to federal or state law.

The evidence established that Monty Ervin and Patricia Ervin also filed numerous documents in probate court renouncing their U.S. citizenship. In one such filing, Monty Ervin declared himself the “governor” of Alabama in its “original jurisdiction.” The Ervins had a license plate on their vehicle which law enforcement witnesses testified at trial was associated with a “sovereign citizens” organization.

The Ervins owned and managed Southern Realty, a property management company in Dothan. As the evidence showed at trial, the couple concealed their assets from the IRS by placing investment properties into the names of nominees – “trusts” and “trustees.” The “trustees” named on property deeds testified that they were not involved in the sale or purchase of the properties and that the Ervins “stamped” their signatures onto official property records. Patricia Ervin also structured deposits into Southern Realty’s bank account in an effort to evade federal currency reporting requirements.

In addition to hundreds of real estate investment properties, the evidence also showed that the Ervins had amassed beachfront condominium units in their own names including a $1.3 million unit they paid for in cash and, when investigated by the IRS, transferred those properties into the names of bogus “trusts” and “trustees.” Additionally, the government introduced into evidence $350,000 of gold coins said to have been buried in their yard.

The Ervins were indicted by a federal grand jury in Montgomery in February 2011. In March, Monty Ervin was arrested by a U.S. Marshal’s Service Fugitive Task Force in Naples, Fla., with a notebook containing the latitudinal and longitudinal coordinates of an island off the coast of Honduras.

“Tax defiers who flout the tax laws by concealing assets in bogus trusts risk criminal prosecution and substantial prison terms, as well as having to pay their back taxes, interest, and penalties,” said Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division.

“The legality of our income tax laws has been challenged repeatedly and the courts have consistently upheld these laws,” said Richard Weber, Chief, IRS Criminal Investigation. “Sentencings like the one returned against the Ervins send a loud and clear message that regardless of their opinions, people who defy the tax laws will be fully investigated, prosecuted and subjected to the full punishment of the law for their actions.”

In addition to prison time, U.S. District Judge Myron H. Thompson ordered the Ervins to pay $1,436,508 in restitution to the IRS.

Assistant Attorney General Keneally thanked special agents of IRS-Criminal Investigation for investigating the case, Trial Attorneys Justin Gelfand and Michael Boteler of the Justice Department’s Tax Division, and Assistant U.S. Attorney Todd Brown for prosecuting the case.

12-683Tax Division

[ArthurWankspittle]

Additionally, the government introduced into evidence $350,000 of gold coins said to have been buried in their yard.

Is their yard currently full of panhandlers with metal detectors and spades? You'd have thought the prosecution would have established whether it was or wasn't there, rather than saying "said to have been buried".

[LPC]

Conviction and sentence affirmed on appeal. No. 12-13156 (11th Cir. 4/22/2013).