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November 14, 2002 The United States Attorney's Office for the Northern District of California announced that Sandra Lee Ross, 55, of Redway, California, was indicted on November 12, 2002, by a federal grand jury on one count of money laundering in violation of 18 U.S.C. § 1956(a)(3)(A) and twenty-eight counts of failure to file a return with the Internal Revenue Service ("IRS") in violation of 26 U.S.C. § 7203. According to the indictment, Ms. Ross owned a business styled G.P.S., also known as Generators-Parts-Service located in Redway, California, that engaged in selling electric generators and related equipment. Ms. Ross is alleged to have sold 28 electric generators and/or related equipment for cash amounts aggregating in excess of $10,000 per transaction in 1999 and 2000. Federal law requires that a business file an information return, IRS Form 8300, Report of Cash Payment Over $10,000 Received in a Trade or Business, within 15 days of the business' receipt of cash in excess of $10,000 for a transaction or two or more related transactions. The indictment charges that Ms. Ross willfully failed to file the information returns with IRS as required by law for each of the 28 transactions, in violation of 26 U.S.C. § 7203. The indictment, along with an affidavit filed by a special agent of the IRS in connection with an application for search warrants in the same matter, also allege that Ms. Ross sold an electric generator to an IRS undercover agent posing as a marijuana cultivator, with the intent to promote the carrying on of the illegal activity, in violation of 18 U.S.C. § 1956(a)(3)(A). Ms. Ross allegedly received $25,300 in U.S. currency from the undercover agent for the sale of the generator. The maximum statutory penalty for the money laundering count in violation of 18 U.S.C. § 1956(a) (3)(A) is 20 years in prison and a fine of $25,300. The maximum statutory penalty for each count of failure to file a return in violation of 26 U.S.C. § 7203 is 5 years in prison and a fine of $25,000. However, any sentence following conviction would be dictated by the Federal Sentencing Guidelines, which take into account a number of factors, and would be imposed in the discretion of the Court. An indictment simply contains allegations against an individual and, as with all defendants, Ms. Ross must be presumed innocent unless and until convicted. Ms. Ross' initial court appearance has not yet been scheduled. The prosecution is the result of a lengthy investigation by the IRS, the Drug Enforcement Agency, the Humboldt County Sheriff's Department and the Humboldt County Drug Task Force. Emily Kingston is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Stefania Chin and Kathy Tat. A copy of this press release may be found on the U.S. Attorney's Office's website at www.usdoj.gov/usao/can. Related court documents and information may be found on the District Court website at www.cand.uscourts.gov or on http://pacer.cand.uscourts/gov. All press inquiries to the U.S. Attorney's Office should be directed to Assistant U.S. Attorney Matthew J. Jacobs at (415) 436-7181.
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