CONTACT: GINA BALAYA (313) 226-9758
 

FOR IMMEDIATE RELEASE:
 

    A former State Representative and current Wayne County Commissioner, who once owned and operated an adult entertainment establishment, pleaded guilty today to deliberately causing the filing of a false currency transaction report with the Internal Revenue Service, announced Acting United States Attorney Alan Gershel.

    Keith Stallworth, 46, of Detroit, entered his guilty plea to a one-count federal Information alleging he structured a financial transaction to evade federal currency reporting requirements. The plea was entered before United States District Judge John Corbett O'Meara.

    Gershel was joined in today's announcement by Mark Kroczynski, Special Agent in Charge of Internal Revenue Service Criminal Investigation Division.

    According to the Superseding Information, on or about March 16, 1998, Keith Stallworth caused Michigan National Bank to file with the Internal Revenue Service a currency transaction report which contained a misrepresentation of material facts. Specifically, the currency transaction report failed to disclose the true source of $20,000 in United States Currency that was used to purchase four cashier's checks, but instead falsely identified another individual as the owner of the currency.

    Defendant Stallworth was indicted on June 27, 2001, along with 13 other individuals on charges of Conspiracy to Possess with Intent to Distribute Controlled Substances and with Money Laundering. In exchange for his guilty plea to the felony currency transaction offense the government has agreed to dismiss the more serious offense to which Mr. Stallworth was charged.

    Stallworth will be sentenced by Judge O'Meara on a date set by the court. He will remain free on bond pending sentencing.

    Stallworth faces a maximum statutory penalty of five years imprisonment and a fine of $250,000. Under the terms of the plea agreement Stallworth is looking at a possible 7 month term of imprisonment a term of supervised release, a fine and a $100 special assessment.

The sentence will be imposed under the United States Sentence Guidelines according to the nature of the offense and the criminal background, if any, of the defendant.

    Special Agent Kroczynski stated, "Mr. Stallworth knowingly, willfully, and for the purposes of evading the reporting requirements of Michigan National Bank caused a Currency Transaction Report, which contained misrepresentations on who actually owned the currency, to be filed with the Internal Revenue Service. This is not a technical violation, but an intentional criminal violation of federal law, ment to hide the identity of the owner, who obtained the money through illegal activities, from the Internal Revenue Service. Internal Revenue Service Criminal Investigation does not refer technical violations for criminal prosecutions."

    Gershel commended the agents of the IRS, FBI, DEA and Detroit Police Department.