October 28, 2008
For more information contact :
Supervisory AUSA Karen Rhew
(850) 942-8430
FORMER TALLAHASSEE INVESTMENT ADVISOR INDICTED
ON BANKRUPTCY, BANK, AND TAX FRAUD CHARGES
TALLAHASSEE -- Thomas F. Kirwin, Acting United States Attorney for the Northern District of Florida, today announced that a Federal Grand Jury has returned a 23 count Indictment charging a former Tallahassee investment advisor, Don W. Reinhard (47), currently of Santa Rosa Beach, Florida, with making a false loan application, bank fraud, bankruptcy fraud, transportation in interstate/foreign commerce of property obtained by fraud, making false statements, money laundering, and filing false tax returns.
The indictment, filed in Tallahassee, charges Reinhard with:
1. making a false loan application and committing bank fraud related to a $223,244.97 loan for a 36 foot Contender boat;
2. eleven counts of bankruptcy fraud relating to making and filing false
financial statements and schedules concerning declared assets and liabilities in his bankruptcy proceeding and the concealment or transfer of assets that were required to be disclosed in his bankruptcy case;
3. two counts of transporting in foreign commerce from Florida to the Bahamas two boats, a 38 foot Sea Ray valued at $238,000 and a 36 foot Contender valued at $265,393, that were taken by fraud;
4. two counts of making false statements by submitting to the United States Bankruptcy Trustee false individual income tax returns for the years 2002 and 2005.
5. three counts of money laundering relating to the transfer or sale of assets while his bankruptcy case was pending; and
6. three counts of filing false individual tax returns with the Internal Revenue Service for the calendar years 2001, 2002, and 2005.
The Indictment also seeks the forfeiture of real and personal property of the defendant.
Reinhard was arrested by federal agents this morning in Santa Rosa Beach on a federal warrant based upon the charges of the Indictment. Reinhard will make his first appearance in United States District Court in Tallahassee. A trial date will be scheduled by the Court for the defendant, and the case will be tried in Tallahassee before Chief United States District Judge Robert Hinkle.
If convicted on the twenty-three counts of the Indictment, REINHARD faces a maximum total term of imprisonment of 214 years’ imprisonment and fines totaling $6,500,000.00.
This Indictment is the result of an investigation that commenced two years ago. Acting United States Attorney Kirwin commended the tireless efforts of the Internal Revenue Service and the United States Bankruptcy trustee in this complex investigation. Mr. Kirwin stated that, “The bankruptcy system is particularly vulnerable to fraud on the part of those who participate in it. The judges and trustees who monitor and administer the system and the parties involved typically rely primarily on representations made by the debtor and other parties to determine how much is owed to each creditor and how the debtor's liabilities should be repaid. Fraud in the bankruptcy system is harmful to all citizens. Similarly, fraud in the filing of false tax returns with the Internal Revenue Service adversely affects the taxpayers. This office, along with the federal investigative agencies, will vigorously investigate and identify those individuals who commit fraud. Fraud committed against the taxpayers remains a priority with the Department of Justice.”
Assistant Special Agent in Charge Tracey Montano of the Internal Revenue Service Criminal Investigation Division, stated, "The IRS is committed to pursuing the laundering of illegally gained proceeds as a form of tax evasion in progress. The filing of false income tax returns, in conjunction with the laundering of the fraudulently obtained income, makes the involvement of the IRS an integral part of the investigative efforts of the U.S. Attorney's Office. The prosecution of individuals who intentionally conceal income and evade taxes is a vital element in maintaining public confidence in our tax system. We should not expect the honest taxpayer to foot the bill for those who hide income from the IRS."
Assistant United States Attorney Stephen M. Kunz is assigned the prosecution of this case.
An indictment is merely a formal charge that a defendant has committed a violation of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty beyond a reasonable doubt.