Two Brothers Indicted For Receiving Over $16.5 Million In Fraudulent Tax Refunds
Greenbelt, Maryland - A federal grand jury has indicted Sean Aude Gallman, age 37, of Upper Marlboro, Maryland, and his brother Eric Maurice Gallman, age 41, of Huntersville, North Carolina, today on charges arising from a $16.5 million fraudulent tax scheme.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Because of the greed of Sean Gallman and Eric Gallman, the U.S. taxpayer was defrauded of over $16 million. The Gallmans used business entities and addresses in different states to create an elaborate scheme to hide their stolen funds.” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “The indictment announced today reinforces the commitment by law enforcement and the Maryland United States Attorney’s Office that individuals who steal from the government will be held accountable.”
The three count indictment alleges that Sean and Eric Gallman established trusts and business entities, including Gallman Charitable Trust and LEA Group Holdings Trust. The defendants used mailboxes at numerous private commercial postal carrier stores in Maryland and North Carolina as the addresses for the Trusts.
Acting as the trustee and agent of the Gallman Charitable Trust, on or about January 4, 2013 Sean Gallman allegedly mailed to the IRS a fraudulent 2012 tax return in the name of the trust, requesting a refund of $8,218,930. Also around this time and as the trustee and agent of LEA Group Holdings Trust, Eric Gallman allegedly mailed to the IRS a fraudulent 2012 tax return in the name of the trust, requesting a refund of $8,293,562.
The indictment alleges that the defendants knew that the Trusts were not entitled to the tax refunds. After receiving refund checks in these amounts, on February 15 and March 11, 2013, the defendants deposited the two refunds in bank accounts they controlled.
The indictment seeks forfeiture in the total amount of $16,512,492, the amount of the two refunds.
The defendants face a maximum sentence of 20 years in prison for conspiring to commit mail fraud; 10 years in prison for conspiring to defraud the government; and five years in prison for false claims against the government. An initial appearance is expected to be scheduled for both defendants in the next two weeks in U.S. District Court in Greenbelt.
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 praised the IRS-Criminal Investigation for its work in the investigation and thanked Assistant United States Attorney Thomas P. Windom, who is prosecuting the case.