FOR FURTHER INFORMATION CONTACT
AUSA VICKIE E. LEDUC at 410-209-4885
December 20, 2005
FOR IMMEDIATE RELEASE
FORMER BALTIMORE BUSINESSMAN INDICTED ON CHARGES OF FILING FALSE TAX RETURNS AND STRUCTURING CASH DEPOSITS
BALTIMORE, Maryland - United States Attorney for the District of Maryland Rod J. Rosenstein announced that today a federal grand jury indicted Ronald C. Heidel, age 59, of Sanibel, Florida, on six charges of making false statements on his personal and corporate tax returns for Dembo, Inc., d/b/a the Gentlemen’s Gold Club for tax years 1999, 2000, and 2001. Heidel was also charged with 20 counts of structuring cash deposits to avoid currency transaction reporting requirements in 2000-2001.
The 26-count indictment charges that Heidel began depositing large sums of cash into various banks accounts in May 1999, two months after he purchased the Gentlemen’s Gold Club, a “gentlemen’s club” on Pulaski Highway. The indictment alleges that the deposits continued through the end of 2001 and ultimately totaled $1.464 million. The indictment further alleges that Heidel often made two separate deposits of $7,000 to $9,000 at different branches of Bank of America, or at branches of both Bank of America and 1st Mariner Bank, on the same day to avoid triggering the filing of a Currency Transaction Report (CTR). A CTR is required by law to be filed by the bank whenever a bank customer conducts a cash transaction involving more than $10,000. A CTR is filed with the Internal Revenue Service and discloses the identity, address and occupation of the individual who conducted the cash transaction with the bank, and the total amount of currency involved in the transaction. Such information is useful to government investigators and attorneys in criminal, tax and regulatory investigations and proceedings.
The indictment further alleges that Heidel understated his taxable income on his 1999, 2000, and 2001 tax returns, reporting taxable income of $0 on both his 1999 and 2000 returns and $23,164 on his 2001 return, and also overstated his cost basis on sales of stock reported on both his 1999 and 2000 tax returns.
If convicted of making false statements on his personal and corporate tax returns, Heidel faces a maximum sentence of three years’ imprisonment and a $250,000 fine on each count. If convicted of structuring more than $100,000 in a twelve-month period, Heidel faces a maximum penalty of 10 years’ imprisonment and a $500,000 fine on each count.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the investigative work performed by the Internal Revenue Service - Criminal Investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who is prosecuting the case.
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