Lawyer News

Obstruction Charges Filed in Alleged Guinean Mining Rights Bribe Scheme

Federal authorities have arrested a French national as part of an ongoing foreign bribery investigation.

Frederic Cilins, 50, was arrested Sunday in Jacksonville, Fla. and has been accused of obstructing an ongoing investigation into whether an unnamed mining company and affiliates paid bribes for mining rights in Guinea’s Simandou region.

According to the Justice Department, the investigation involved undercover operations and the wife of a deceased foreign official who chose to become a cooperating witness in hopes of gaining immunity. the now-dead Guinean official could allegedly influence the award of mining concessions.

According to a complaint filed in the Southern District of New York, Cilins agreed to pay what the Justice Department calls “substantial sums” of money to induce a witness to turn over documents so they could be  destroyed. Cilins allegedly made the statements in recorded phone calls and face-to-face meetings and knew that the documents had been requested by the FBI to be produced before a federal grand jury.

Prosecutors claim the mining company and affiliates offered the official’s wife millions of dollars which would be distributed to her and officials in the government who might have authority over the award of mining rights. The documents Cilins allegedly wanted destroyed include copies of contracts between the unnamed mining company and affiliates and that former wife.

The complaint also says Cilins allegedly tried to induce the witness to sign a false affidavit regarding the grand jury investigation.

Cilins was detained pending a hearing scheduled for Thursday and made an initial appearance in the Middle District of Florida.

He is charged with tampering with a witness, victim or informant, with obstructing a criminal investigation, and with and destroying, altering or falsifying records in a federal investigation. The Justice Department said the obstruction charge carries a maximum penalty of five years in prison. Each tampering and record-destruction charge carries a maximum penalty of 20 years in prison.

Former Sheriff’s Captain Pleads Guilty to Obstructing Investigation

Michael Henderson, 41, of Georgia has pleaded guilty to obstructing a pending civil rights investigation by tampering with a witness while employed as a Murray County Sheriff’s captain.

According to court records, sometime in July 2012, then-Captain Henderson received information that a white Dodge vehicle was being used to carry drugs. He passed this information along to other deputies with the Murray County Sheriff’s Office.

Henderson and former Deputy Sheriff Joshua L. Greeson found the  white Dodge on August 14, 2012 and pulled the driver over. During the stop, Greeson found methamphetamine in a metal can hidden under the wheel well of the car. After finding the drugs, they arrested the driver and owner/passenger of the vehicle.

Shortly thereafter, the Georgia Bureau of Investigation (GBI) received information that the drugs had been planted on the vehicle by another individual in an attempt to falsely implicate the car’s owner. As a result,  state drug charges against the owner of the white Dodge were dismissed.

On August 22, 2012, agents from the GBI interviewed Henderson in connection with a civil rights investigation. During the interview, Henderson falsely stated to the GBI agents that he had never told any other members of the Murray County Sheriff’s Office that he had received information that the white Dodge was allegedly carrying drugs. However, as stated above, Henderson had, in fact, received information that the white Dodge vehicle carried controlled substances.

On August 31, 2012, Henderson was fired from the Sheriff’s Office.

Henderson, 41, of Murray County, Georgia, could receive a maximum sentence of 20 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

Sentencing is scheduled for May 31, 2013, at 1:30 p.m., before United States District Judge Harold L. Murphy.

Former Penn. State Auditor Imprisoned for Tax Evasion

Troy A. Beam of Shippensburg, Pa., has been sentenced to 74 months in prison by U.S. District Judge Christopher C. Conner of the Middle District of Pennsylvania. Beam is a former certified public accountant and state auditor in the Pennsylvania Auditor General’s Office. He was convicted by a federal jury on May 4, 2011 of tax evasion, obstructing and impeding the due administration of the Internal Revenue laws, and willful failure to file federal income tax returns.

Evidence at trial proved that Beam earned more than $10.3 million in gross income from 1992 to the date of the indictment through his home construction business known as “Sunbeam Builders,” and from being an owner/operator of two real estate businesses known as “Latrobe Leasing” and “Goldstar Property Management.” The latter two companies purchased, rented and sold real estate. 

However he failed to report that income. In fact, Beam failed to file any federal income tax returns since April 1996, when he filed his 1995 tax return reporting a loss. Moreover, in April 1996, Beam also filed false amended federal income tax returns for 1992, 1993 and 1994, seeking tax refunds for taxes he previously had paid for those years. 

 The evidence also proved Beam obstructed the IRS in its attempt to calculate and collect his taxes by using numerous sham trusts and other entities, including North Star Investment Holdings Ltd. to hide his income and assets. He used North Star to set up a bank account in the Cayman Islands into which he deposited nearly $3 million of income derived from his construction business.       

 Beam’s conviction and sentencing were announced by the Justice Department and the Internal Revenue Service (IRS) announced. In the press release, Peter J. Smith, U.S. Attorney for the Middle District of Pennsylvania said, “The evidence showed beyond a reasonable doubt that Troy Beam is a consummate fraud and hypocrite who evaded his responsibilities as a citizen while participating in a charade to deceive the government, other citizens and himself for his own selfish ends,”

Rick A. Raven, Acting Chief, IRS Criminal Investigation was also quoted saying, “The use of abusive trust schemes and sham entities intended to conceal income from the IRS isn’t tax planning; it’s criminal activity. As the tax filing season comes to a close, it’s more important than ever that the American people feel confident that everyone is paying the taxes they owe.”