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Press Release

Charlotte Area Club Owner And Promoter Sentenced For Filing A False Tax Return And Money Laundering

For Immediate Release
U.S. Attorney's Office, Western District of North Carolina
Defendant Sentenced to Prison and Club 935 is Shut Down

CHARLOTTE, N.C. –U.S. District Judge Robert J. Conrad, Jr., sentenced a Charlotte area club owner and entertainment promoter on tax fraud and money laundering charges, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina.  Adolph R. Shiver, 52, of Charlotte, was sentenced to nine months in prison followed by three years of supervised release, during which he will serve an additional nine months of home confinement.  Shiver was also ordered to pay $28,635 as restitution to the Internal Revenue Service, and a $25,000 fine.  Additionally, Judge Conrad ordered Shiver to perform 50 hours of community service.  Finally, Shiver must close his nightclub, Club 935, and must not own or manage another nightclub for the duration of his sentence.

Daniel R. Salter, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CID), join Acting U.S. Attorney Rose in making today’s announcement.

According to filed court documents and today’s sentencing hearing, Shiver is the owner and operator of two Charlotte-based party promotion businesses, “L.A. Inc.” and “Adof Entertainment Group,” and the owner and operator of Club 935, also located in Charlotte.  Court records indicate that in or about December 2013, Shiver knowingly conducted a financial transaction involving $50,000, represented to be the proceeds of unlawful activity.  According to court records, Shiver planned to launder those illegal proceeds through his businesses.  In addition to engaging in money laundering, in or about October 2013, Shiver filed a false tax return for tax year 2012, which understated his taxable income.  According to court records, Shiver omitted from his personal and corporate tax returns gross receipts totaling $102,270, with a corresponding tax loss of $28,635.

Shiver pleaded guilty in December 2014 to one count of filing a false tax return for tax year 2012 and one count of money laundering.  At today’s sentencing hearing, Shiver was ordered to report to the Federal Bureau of Prisons upon designation of federal facility.  All federal sentences are served without the possibility of parole.

This prosecution is part of “Operation Jailhouse Productions,” an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF).  OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.

The case was investigated by DEA and IRS-CID.  Assistant U.S. Attorney Steven R. Kaufman coordinated on the investigation and handled the prosecution in this case.

Updated August 27, 2015

Financial Fraud