Continuing our countdown of the IRS Criminal Investigation (IRS: CI) top ten tax crimes of 2024, we take a look at a politician nabbed for influence peddling and tax fraud, along with a case involving drug trafficking with ties to terrorism.
#8—Council member pleads to RICO charges and tax evasion
Representing the Los Angeles Council District since 2005, Jose Huizar led an extensive bribery network aimed at maintaining and growing his influence—and wealth.
While conspiracy at any city hall is rarely a shock, the breadth of the corruption perpetrated by Huizar is notable. Said the U.S. Attorney on the matter, “Councilman Huizar violated the public trust to a staggering degree, allegedly soliciting and accepting hundreds of thousands of dollars in bribes from multiple sources over many years.”
Along with an extensive cadre of co-conspirators, Huizar operated the “CD-14 Enterprise,” named for the Council District of which he was the elected representative. The scheme took shape in 2013 when Huizar arranged to receive $570,000 to settle sexual harassment allegations brought by a staffer. Over time, Huizar received trips and chips in Las Vegas, cash, and international travel. The complaint in the matter describes the set-up as a “pay-to-play” network that involved friends, lobbyists, investors, city officials, and developers, among others.
Of interest were the extensive efforts and tools utilized during the IRS investigation of Huizar’s activities, including email records, phone records, confidential sources, search warrants, casino and other business records, GPS locators, city and other public records, surveillance in Los Angeles and Las Vegas, vehicle tracking devices, and pole cameras.
Huizar pled guilty to conspiracy to violate The Racketeer Influenced and Corrupt Organizations Act (RICO) and one count of tax evasion. He will pay $443,905 in restitution to Los Angeles and $38,792 to the IRS and spend 156 months in prison. While he wrote a poignant sentencing letter to the judge, he also pled to obstructing justice, lying to prosecutors and federal agents, and tampering with two witnesses.
#7—Drug trafficking and funding terrorist activities
The number seven tax crime on the IRS: CI 2024 list belongs to Jason Brown, a Chicago man who trafficked drugs from the West Coast to Chicago. Brown also supplied cash on three separate occasions to a person whom he believed was involved in terrorist activity for Islamic State of Iraq and Syria (ISIS) in Syria. The individual Brown connected with was undercover law enforcement.
Brown pled guilty to one count of trying to provide material support for ISIS, and counts involving the distribution of fentanyl and possessing a gun in support of his drug trafficking business. In custody since 2019, Brown was sentenced to 18 years in prison.
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Serious tax crimes can lead to serious prison time. These defendants earned 13 and 18 years in federal prison for their actions, respectively. If you are involved in criminal tax fraud, take a moment to consider your future and speak with an experienced criminal tax attorney with our firm for straightforward options and potential exit strategies. Reach out to us at 440-250-9709 or schedule a consultation. We serve both domestic and international clients, with offices in Cleveland and Chicago.
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