Owners/Operators Of Two Shreveport Businesses Plead Guilty To Money Laundering, Wire Fraud And Tax Evasion Charges
According to evidence presented in the 19-count superceding indictment filed on September 19, 2012, the defendants engaged in a conspiracy to commit money laundering beginning in 1996 through November 2010. The defendants’ scheme revolved around the sale and financing of used and new vehicles to individuals who derived, or represented that they derived, significant income from the distribution of illegal drugs. The defendants knowingly accepted cash proceeds from drug dealers, allowed vehicle purchases in the names of nominees, and falsified records of payments received. The defendants provided false information to law enforcement agencies, including the Shreveport Police Department and the Harrison County Sheriff’s Office, to facilitate the release of vehicles seized from drug dealers.
In 2009 and 2010, the FBI conducted multiple “sting” operations directing cooperating individuals to purchase vehicles in the names of nominees and using large cash payments towards the purchase of those vehicles. These operations proved that the defendants readily accepted large amounts of money thought to be drug proceeds and skimmed cash from down payments by manipulating records to show lower sales prices and reduced amounts of down payments.
The indictment also charges several violations of The Bank Secrecy Act (BSA), which requires that businesses, including motor vehicle dealerships, take a number of precautions against financial crimes. One such precaution is filing and reporting certain data indicative of money laundering, including cash transactions over $10,000 on a Form 8300. The indictment charges five counts of failure to file a Form 8300 and three counts of filing a false Form 8300.
Additionally, the indictment charges that Michael Boyter evaded taxes for the years of 2007 through 2010 by filing false information on his tax documents. Michael Boyter intentionally understated his income on his personal tax returns, while paying for personal items and services, including an extensive house remodel, with business checks and/or cash. In his plea agreement, Michael Boyter agreed to pay $290,381 to the IRS.
“The defendants have admitted to their involvement in assisting drug traffickers in their illegal activities that took place at Mike’s Auto Sales and A-1 Auto Finance,” Finley stated. “They sold vehicles to drug dealers and used the money to enrich themselves. They further broke the law by attempting to hide the proceeds of the illegally obtained wealth by lying on tax forms and not reporting income. We thank all of the federal, state and local law enforcement agencies who participated in this investigation. My office will continue to vigorously prosecute those who do business with criminal elements in order to make quick profit.”
“This is an important victory for the American public,” stated Gabriel Grchan, Special Agent in Charge, IRS Criminal Investigation. “Michael Boyter, William Boyter and Anthony Riley have taken responsibility for their roles in these crimes with the entering of their guilty pleas. It is important to note that not only are the Boyters and Mr. Riley going to be sentenced for their crimes, but the government has seized a significant portion of the illegal proceeds through asset forfeiture. The role of IRS CI in money laundering investigations is to follow the money so we can financially disrupt and dismantle these types of criminal enterprises. IRS Criminal Investigation is proud to provide its financial expertise as we work alongside our law enforcement partners to bring criminals to justice.”
The defendants also agreed to forfeit the property of Mike’s Auto Sales and A-1 Auto Finance as well as a money judgment in the amount of $1.3 million.
William Paul Boyter faces up to 20 years in prison, a $250,000 fine, and three years of supervised release for the conspiracy to launder monetary instruments charge. Michael Paul Boyter also faces up to 20 years in prison, a $250,000 fine, and three years of supervised release for wire fraud and faces up to five years in prison, a $250,000 fine, and three years of supervised release for the evade or defeat tax charges. Riley faces up to 10 years in prison, a $250,000 fine, and three years of supervised release for the failure to file Form 8300 charges. A sentencing date of January 29, 2014 was set.
This prosecution is the culmination of an investigation dubbed Operation NOMAS and conducted by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint multi-agency group consisting of federal, state, and local law enforcement agencies with a cooperative approach to combat drug trafficking. Investigations of businesses that assist drug dealers in spending and hiding their criminal proceeds is an important part of the OCDETF mission.
Operation NOMAS was a jointly conducted investigation by the FBI’s Northwest Louisiana Violent Crimes Task Force, IRS-Criminal Investigations, DEA, U.S. Marshals Service, Immigration & Customs Enforcement, Shreveport Police Department, Caddo Parish Sheriff’s Office, Bossier City Police Department, Louisiana State Police, the Louisiana National Guard Counter-Drug Task Force, and the DeSoto Parish Sheriff’s Office. The Harrison County Sheriff’s Office in Marshall, Texas, also assisted.
Assistant U.S. Attorneys Allison D. Bushnell and Cytheria D. Jernigan are prosecuting the case.