Northwest Arkansas Man Pleads Guilty To Money Laundering And Filing A False Tax Return
Fayetteville, AR – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, Tracey D. Montaño, Special Agent in Charge for IRS Criminal Investigation, and Diane Upchurch, Special Agent in Charge for the Federal Bureau of Investigation announced today that Darrell Rosen, age 59, formerly of Fayetteville, Arkansas, has pleaded guilty to one count of Money Laundering and one count of Filing a False Income Tax Return. The Honorable Timothy L. Brooks accepted the plea in the United States District Court in Fayetteville.
According to court records, from October 2010 through August 2014, Rosen solicited individuals in Arkansas, Texas, and elsewhere to invest in a business centered on training dogs. Rosen represented that he had contracts with governmental entities as well as some private companies that would allow him to train and then sell dogs to the government for profit. Rosen intentionally made false promises that he would invest the money in the dog training business when, in fact, he used much of the money on his personal expenses. In addition, Rosen caused his 2013 Federal Income Tax Return to be filed with false information by both failing to report income he received from investors and also claiming Schedule A deductions for which he was not entitled.
“IRS Criminal Investigation’s primary mission is investigating and prosecuting individuals that attempt to defraud the tax system, but we also play a role in investigating various financial fraud schemes,” said Tracey D. Montaño, Special Agent in Charge. “Today’s plea demonstrates how federal law enforcement will band together to help put an end to the criminal behavior of those who prey on investors for their personal financial gain. With tax season approaching, I hope this case will also serve as a reminder that all income is taxable, regardless of the source.”
The defendant’s sentence will be determined by the court. In this case, Rosen faces a maximum sentence of ten years in prison for the money laundering charge and a maximum sentence of three years in prison for filing a false tax return.
The investigation was conducted by IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Brice R. White prosecuted the case for the United States.