Milton Tillman, Jr., and his son, Milton Tillman, III, a/k/a “Moe,” have both been indicted for conspiracy to defraud the United States Department of the Treasury, for making false statements on tax returns, and for running an unlawful insurance business. The older Tillman has also been charged with wire fraud stemming from a scheme to defraud Ports America Baltimore, Inc., where he had formerly worked.
The 28 count indictment alleges that Moe and Milton Tillman operated a bail bonding business. In late 2004, 4 ACES also began doing business as Global Surety, a company incorporated by Moe Tillman. For assuming the risk of an arrestee’s future appearances in court, 4 ACES would receive a fee. A percentage of each fee would then be forwarded to the surety insurance company insuring the bond. Between 2001 and 2006 the company’s gross receipts reported to the IRS grew expotentially from $188,337 in 2000, to $5,822,588 in 2006.
Furthermore, Milton and Moe Tillman are accused of structuring the ownership and business operations of 4 ACES to conceal Milton Tillman’s control of the company, as well as the amount of income Moe and Milton Tillman gained from the company. In addition, it is alleged that Milton and Moe Tillman transferred funds from 4 ACES to themselves or to corporations they controlled, using the funds for their personal gain.
In addition, Milton Tillman was also a member of the International Longshoremen’s Association AFL-CIO. As such, he was assigned to particular shifts to work on behalf of Ports America Baltimore, Inc., a stevedoring company. Tillman is accused of misrepresenting to the IRS the extent to which he worked as a longshoreman, and of defrauding Ports America by obtaining wages for hours that he did not work at his job.
Finally, Milton Tillman and Moe Tillman have been charged with filing false personal tax returns for 2002 through 2006, as well as false corporate tax returns.
Tax fraud can take place in a variety of ways. For example, if you intentionally fail to file income tax returns, or pay the accurate amount of income, employment and excise taxes that you owe, you could be prosecuted for tax fraud. Other acts constituting tax fraud include claiming false deductions, using false amounts in books or records, and over reporting deductions.
The penalties facing the Tillman’s are serious including a maximum sentence of five years in prison on the conspiracy charge; three years in prison on each count of filing a false tax return; and five years in prison for unlawfully engaging in and permitting a prohibited person to participate in the business of insurance. Milton Tillman also faces a maximum of 20 years in prison on each of 15 counts of wire fraud.
Douglas McNabb and other members of the firm practice and write extensively on matters involving Federal Criminal Defense, Interpol Litigation, International Extradition and OFAC Litigation.
The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.
