FOR FURTHER INFORMATION CONTACT
AUSA VICKIE E. LEDUC at 410-209-4885
October 4, 2006
FOR IMMEDIATE RELEASE
FORMER IRS AGENT AND OWNER OF BALTIMORE “GENTLEMEN’S CLUB”
PLEADS GUILTY TO MAKING FALSE STATEMENTS ON A TAX RETURN
Baltimore, Maryland – Ronald C. Heidel, age 59, of Sanibel, Florida, a former IRS agent, pleaded guilty today to making false statements on his and his wife’s joint tax return for the year 2001, announced U.S. Attorney for the District of Maryland Rod J. Rosenstein.
According to the statement of facts submitted to the court as part of the plea agreement, Heidel worked as a revenue agent for the IRS in the mid-1970's to early 1979. In March of 1999 Heidel purchased the Gentlemen’s Gold Club (the GGC), a restaurant and bar located on 5801 Pulaski Highway in Baltimore County that also featured entertainment by exotic dancers. Heidel sold the club in July 2002. From late 2000 through mid-2002, Heidel also owned a vending machine business named Rossville Vending that supplied cigarette and video game machines to restaurants, clubs and bars around the Baltimore area.
As president of the GGC, Heidel received the cash generated by door admissions charges and sales of food and drink at the Club on a daily basis. Between May 3, 1999 and December 27, 2001, Heidel deposited $1.467 million in cash derived in part from the operations of the GGC and Rossville Vending into various personal bank accounts, rather than the company’s bank accounts. Most of these cash deposits were between $7,000 and $9,000. Heidel often made two deposits at different branches of the same bank or at two different banks on the same day. As such, and by keeping the amounts to less than $10,000, Heidel avoided triggering the requirement that the financial institution file a cash transaction report (CTR) on these transactions.
As part of the plea agreement, Heidel acknowledged that he made false statements not only on his joint 2001 tax return, but also on his 2000 tax return, and that he substantially under-reported his taxable income for both of these years.
Heidel faces a maximum sentence of three years in prison and a $250,000 fine, followed by a year’s term of supervised release. U.S. District Judge Andre M. Davis scheduled sentencing for March 3, 2007.
United States Attorney Rod J. Rosenstein praised 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.
This page last modifiedOctober 4, 2006