Home » Posts tagged 'IRS' (Page 2)
Tag Archives: IRS
Exposing Cheating in Federal Child Nutritional Aid Programs
Few things are as evil as exploiting programs meant for children.
Let’s talk about some people who did just that:
A Chaska resident has pleaded guilty for his involvement in a $250 million fraud scheme. The scheme exploited a federally-funded child nutrition program during the COVID-19 pandemic.
According to court documents, from approximately November 2020 through January 2022, Mohamed Muse Noor, also known as “Deeq Darajo,” knowingly participated in a scheme to defraud a federal child nutrition program designed to provide free meals to children in need. Rather than feeding children, Noor and his co-defendants took advantage of the COVID-19 pandemic—and its impact on program regulations—to misappropriate millions of dollars in federal child nutrition program funds for personal gain.
Court documents indicate that Noor was specifically recruited for the Feeding Our Future scheme despite lacking background or experience in food procurement or distribution. In December 2020, Noor submitted his application to be enrolled in the Federal Child Nutrition Program through Feeding Our Future employee Abdikerm Eidleh, directed by Aimee Bock, the former Executive Director of the Feeding Our Future non-profit organization. Under Eidleh’s guidance, Noor signed forms with falsified meal counts and fabricated invoices, falsely claiming to feed supper and snacks to 1,500 children daily within weeks of being sponsored by Feeding Our Future. However, Noor did not personally serve any meals to these children and never visited the sites registered in his name by Feeding Our Future.
As detailed in the plea agreement, Noor paid kickbacks to Eidleh in exchange for Feeding Our Future’s sponsorship in the Federal Child Nutrition Program. Food distribution sites associated with Noor fraudulently obtained up to $1.3 million in federal child nutrition program funds by falsely claiming to have served meals to thousands of children per day. Almost all of this $1.3 million was either transferred to Eidleh or intercepted by Eidleh without Noor’s knowledge. As part of their arrangement, Noor retained approximately $52,388 in fraudulent proceeds for himself.
Noor pleaded guilty to one count of conspiracy to commit wire fraud.
Stories like these show us how important it is to closely monitor funds meant for children.
Shocking $17M Fraud Case: MLB Star’s Interpreter Sentenced
Oh boy, this one is a doozy. I’m still amazed after all the stories I’ve written about crazy tax cheats, that I could still find a story that shocks me as much as this one did.
I sure hope the victim can collect the amount that was ordered returned to him.
Here we go:
A former Japanese-language interpreter was sentenced to 57 months in federal prison for illegally transferring nearly $17 million from the bank account of MLB star Shohei Ohtani. This transfer was done without authorization to pay off substantial gambling debts incurred with an illegal bookmaking operation and for signing a false tax return.
Ippei Mizuhara of Newport Beach was ordered to pay $16,975,010 in restitution to Ohtani and $1,149,400 in restitution to the IRS. He pleaded guilty in June 2024 to one count of bank fraud and one count of filing a false tax return. He is free on $25,000 bond and was ordered to surrender to federal authorities by March 24.
Sadly, he exploited his unique position of trust as an advisor and friend, stealing millions of dollars from Ohtani to cover debts incurred through illegal gambling. Additionally, he failed to report these ill-gotten gains as taxable income. This case serves as an example of how individuals in positions of trust can defraud those they serve as well as the government.
Mizuhara’s role involved regularly interacting with Ohtani’s sports agents and financial advisors, who did not speak Japanese, on behalf of Ohtani, who did not speak English. Although Mizuhara was employed by the Los Angeles Angels MLB team and later the Los Angeles Dodgers, Ohtani paid him separately for additional duties such as driving him to meetings and interpreting for non-baseball-related activities.
In March 2018, Mizuhara accompanied Ohtani to a bank in Phoenix to help him open a bank account for his MLB salary. Mizuhara interpreted for Ohtani when the bank employee provided the login information for this account. Beginning in September 2021, Mizuhara started placing sports bets with an illegal bookmaker and quickly became indebted due to losses. He then began a scheme to deceive and cheat the bank to fraudulently obtain money from Ohtani’s account.
From November 2021 to March 2024, Mizuhara used Ohtani’s password to access the bank account and changed the account’s security protocols without Ohtani’s knowledge or permission. Specifically, he altered the registered email address and telephone number so that bank employees would contact him instead of Ohtani for transaction verifications. Mizuhara impersonated Ohtani and used his personal information to authorize wire transfers from the account, calling the bank and impersonating Ohtani approximately 24 times.
In September 2023, Mizuhara charged $60,000 worth of dental work to Ohtani’s bank account despite Ohtani agreeing to pay via check from a different account. Mizuhara then deposited this check into his personal bank account. From January 2024 to March 2024, Mizuhara purchased approximately $325,000 worth of baseball cards from online resellers with Ohtani’s funds, intending to resell them for personal gain.
When questioned by Ohtani’s sports agent and financial advisors about access to the bank account, Mizuhara falsely claimed that Ohtani wanted the account kept private to conceal his fraudulent activities. Mizuhara obtained over $16,975,010 from Ohtani through deceitful means.
In February 2024, Mizuhara filed a false individual federal income tax return for the tax year 2022, underreporting his total taxable income as $136,865, while knowingly failing to report an additional $4.1 million. Under penalty of perjury, he signed the false income tax return and owes approximately $1,149,400 in additional taxes for the tax year 2022, plus interest and penalties.
Stacie's Tax Stuff 