Baltimore, Maryland – Ramon Anthony Jadra, age 47, of Westminster, Maryland pleaded guilty today to tax evasion.
The guilty plea 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.
“The longevity and scope of Mr. Jadra’s scheme to embezzle corporate funds from the Raloid Corporation is simply astonishing,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Mr. Jadra cheated both his own company by illegally diverting corporate funds to himself and the American taxpayer by evading paying taxes on the substantial income he earned from these actions. Today’s plea is an important step in finally bringing this defendant to justice after so many years of engaging in illegal activity.”
According to his plea agreement, Jadra was the president and majority shareholder of Raloid Corporation, a family-owned business located in Reisterstown, Maryland. Raloid manufactured parts for the defense and aerospace industries. Beginning in 2008, Jadra fraudulently diverted company funds to himself.
Jadra carried out his scheme by causing checks to be written on Raloid’s bank account in the names of actual companies with which Jadra or Raloid had business dealings with in the past, but which were not owed the amounts shown on the checks. These checks totaled $495,950 between 2008 and 2011. In an effort to avoid triggering the requirement that banks are required to file a currency transaction report in connection with financial transactions involving more than $10,000 in cash, Jadra caused all of the checks to be issued in amounts of $9,500 or less.
As part of this scheme, Jadra established a check cashing account at a liquor store in Reisterstown, where he cashed fraudulently obtained checks totaling $368,350. Jadra then deposited $316,585 of these funds in a checking account he had established in the name of DIA Solutions, a shell company that did not actually conduct any business, again in amounts less than $10,000.
In the spring of 2010, Jadra implemented a new aspect of his scheme. He hired an attorney to incorporate a company named DIA Solutions in Georgia, and established a bank account under DIA Solutions’ name. Jadra then falsely advised his father and Raloid’s controller that DIA Solutions, an independent consulting firm, was entitled to receive 5% of the payments Raloid received on a contract DIA Solutions had helped it obtain that was worth over $6 million. Jadra instructed Raloid’s controller that he should issue a check to DIA Solutions for 5% of the amount of every payment that Raloid received on this contract. DIA Solutions had not in fact provided any goods or services to Raloid and had played no role in obtaining the contract in question. Once Jadra received these checks, totaling $313,218.02, he deposited them into the DIA Solutions bank account and then converted the money to his personal use.
Finally, in 2010 and 2011, Jadra implemented a third aspect of his fraudulent scheme. Raloid’s manufacturing processes generated quantities of scrap metal, which it sold to two other companies. However, Jadra withheld this information from Raloid’s controller, who was left under the impression that Raloid had to pay a company to haul away the scrap materials from the plant. This enabled Jadra to intercept checks from the two companies that were tendered to Raloid to pay for scrap metal it had sold, deposit the funds in the DIA Solutions bank account, and convert these funds to his own use. In all, Jadra derived $91,249.75 from this aspect of his scheme.
Jadra used the majority of the embezzled funds for largely unsuccessful on-line stock trading. Other embezzled funds were used as follows: $50,000 down payment on a new 2012 BMW 535i costing $73,775.70; $14,512.58 for home renovations; $7,500 to buy a boat trailer; $31,295 to buy a watercraft; and a $15,929 down payment on a new Harley Davidson MC Screamin’ motorcycle costing $48,416.82.
As a result of the schemes, from 2008 to 2011, Jadra fraudulently converted $900,418 from Raloid, and failed to pay $283,481 in taxes on this fraudulently obtained money.
Jadra faces a maximum sentence of five years in prison and a $250,000 fine. U.S. District Judge Catherine C. Blake scheduled sentencing for December 5, 2014 at 9:15 a.m.
United States Attorney Rod J. Rosenstein praised the IRS- Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Jefferson M. Gray, who is prosecuting the case.