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IV. Agency Budget Summaries

TAX DIVISION


  1. RESOURCE SUMMARY

  2. METHODOLOGY

    • The methodology for calculating the Tax Division's drug budget resources is based on actual workyears dedicated to drug-related cases. It also includes a prorated share of the mandatory increases/adjustments to its base budget attributable to the Tax Division's Criminal Prosecution program.

  3. PROGRAM SUMMARY

    • The Tax Division supports Goal 2, "Increase the safety of America's citizens by substantially reducing drug-related crime and violence" of the National Drug Control Strategy. Attorneys in the Tax Division's four Criminal Enforcement Sections investigate and prosecute individuals, corporations, nonprofit organizations, and other taxpayers that attempt to commit tax evasion, willfully fail to file tax returns, file false tax returns, and otherwise intentionally attempt to evade their obligations under the federal tax laws. They also investigate and prosecute tax violations occurring in the context of criminal conduct such as financial institution fraud, narcotics trafficking, bankruptcy fraud, and domestic and international tax conspiracies.

    • The Tax Division relies on the Internal Revenue Code to prosecute narcotics traffickers. In some instances, tax violations related to narcotics enterprises are easier to prove than the underlying drug offenses. In other cases, tax charges complement the evidence of the narcotics crimes. Tax Division Criminal Enforcement attorneys serve as the liaisons to the Internal Revenue Service, the United States Attorneys' offices, the OCDETF program, and other agency participants in the National Drug Control Strategy. In this role, Tax attorneys monitor drug/tax related dockets to ensure that timely assistance is provided in the investigation and prosecution of narcotics traffickers.

  4. BUDGET SUMMARY

    1998 Program

    • The Tax Division's FY 1998 drug control budget includes funding of $0.3 million for its Criminal Tax Enforcement program. This funding supports three positions and three FTEs.

    • The Tax Division anticipates receiving $1.3 million in reimbursable funding for its OCDETF activities.

    1999 Request

    • The Tax Division's FY 1999 drug control request for its Criminal Tax Enforcement program is $0.4 million, which will support three positions and three FTEs. The requested funding represents base adjustments only.

    • In addition, the Tax Division anticipates receiving $1.3 million in reimbursable funding for its OCDETF activities.

  5. PROGRAM ACCOMPLISHMENTS

      United States vs. Maria Elena Hernandez (S.D. FL)

    • On August 19, 1997 Maria Hernandez pleaded guilty to conspiring to launder approximately $100,000. Hernandez was an office manager for a Fort Lauderdale, Florida demolition business and had been recruited to launder narcotics proceeds by Luis Fernandez, a partner in the Hector Gonzalez drug organization. Between 1991 and 1994, Hernandez received approximately $1.1 million in currency from the organization, which she then proceeded to disburse by issuing business checks to Gonzalez, Fernandez, and other organization members.

      United States vs. Fanny Ruiz de Pinzon (S.D. FL)

    • On July 10, 1997 Pinzon pleaded guilty to conspiring to launder approximately $595,000. Pinzon was the wife of Magill Pinzon, a partner in the Gonzalez narcotics smuggling organization between 1985 and 1994. She transported several million dollars in cocaine profits from Miami to Colombia and then repatriated the money by falsely declaring to U.S. Customs that the money was earned from Colombian publishing and printing concerns. Some of the money was later used to purchase a residence and furnishings worth more than $600,000. As part of her plea agreement, Fanny Pinzon agreed to forfeit her residence.

      United States vs. Castor Quintares Gonzalez (S.D. FL)

    • On May 29, 1997, in an OCDETF prosecution, Castor Quintares Gonzalez pleaded guilty to an 18 U.S.C. 371 Klien-conspiracy, an 18 U.S.C. 1956(h) money laundering conspiracy, an 18 U.S.C. 848 continuing criminal enterprise charge. As part of his plea, Gonzalez agreed that he would be sentenced to mandatory life imprisonment. The prosecution arose out of Gonzalez's marijuana and smuggling operation in South Florida between 1979 and 1993. With Gonzalez's plea, all of the co-conspirators and confederates in this narcotics ring have pleaded guilty.