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Wednesday, October 13, 2010

Department of Justice

United States Attorney William C. Killian Eastern District of Tennessee


GREENEVILLE COUPLE SENTENCED TO PRISON FOR TAX CHARGES

Couple hid $200,000 in assets in Cherokee National Forest during their trial

GREENEVILLE, Tenn. – On October 12, 2010, Edward Kenneth Eastwood, 63, and Elina Gromova Eastwood, 43, both of Greeneville, Tenn., were sentenced in United States District Court in Greeneville, for their convictions in United States District Court on federal conspiracy, tax evasion, perjury, and financial structuring charges. The Honorable J. Ronnie Greer, United States District Judge, sentenced Edward Eastwood to serve 97 months in prison and Elina Gromova Eastwood to serve 60 months in prison. Both have remained in federal custody since a federal jury returned guilty verdicts against them on all charged counts on March 8, 2010.

In addition to prison sentences, both were ordered to pay $403,000 restitution to the Internal Revenue Service (IRS); $9,610 in court costs incurred by the United States in prosecution of the case; and three years supervised release. Judge Greer also noted that Elina Gromova Eastwood was convicted of four aggravated felonies and is likely to be deported to the Republic of Kyrgystan, her country of origin.

Information at the sentencing hearing revealed that the Eastwoods drove to a remote location in the Cherokee National Forest on March 7, 2010, after the conclusion of their trial, but before the verdict was returned, where they buried 128 one-ounce gold coins and 543 one-ounce silver coins in four poly-vinyl-chloride pipes in an attempt to conceal the fruits of their offenses. Edward Eastwood also hid $9,900 in $100 bills in his travel-trailer. At the beginning of the investigation, federal agents found 76 one-ounce gold coins stored in a poly-vinyl-chloride pipe located at a storage unit which was rented in the name of the couple’s daughter.

The indictment and subsequent conviction of Edward K. Eastwood and Elina Gromova Eastwood was the result of an investigation conducted by the IRS - Criminal Investigation and the Federal Bureau of Investigation. The Greene County Sheriff’s Office, United States Forest Service, and Citizenship and Immigration Service also provided assistance to the investigation. Assistant United States Attorney Helen Smith represented the United States during the litigation.

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