Tax Crime Junkies

Episode 31 The Southport Scandal: Unraveling a Financial Prodigy's Web of Deceit Part II

Welcome to the latest episode of Tax Crime Junkies, where we take a deep dive into the infamous South Lane Enterprise scandal. Join this exhilarating journey as hosts Dom and Tom chat with special guest, certified fraud examiner Richard Bailey about the ins and outs of famously exposing a staggering $350 million fraud.
A phone call in the summer of 2013 marked the beginning of the riveting tale woven with greed, fraud, and the spectacular downfall of South Lane Enterprise. Bailey narrates the thrilling saga of uncovering $1.2 million in mysterious funds, signing stock certificates under severe distress, punctuated by a chilling atmosphere of constant danger and threats.
Witness the collapse of a meticulously built empire when the company's insurance sellers start demanding their cut. When co-founder Alexander Chatfield Burns absconds, he leaves behind a chaotic frenzy of legal troubles and a shaken minority partner struggling to salvage what's left.
Despite Burns' attempt to start afresh in Charleston, South Carolina, the Wall Street Journal discovers his past. Striving to escape his past, Burns leaves Bailey grappling with significant personal financial liability and the race to prevent the winery from going under. The episode concludes with Bailey’s dramatic decision to reveal the truth to the authorities, setting in motion the final act of the South Lane odyssey.
In the heart of Pirate Cove, Bailey exposes the fascinating, yet horrifying tale of a 28-year-old’s incredible $350 million Securities Portfolio fraud. Discover the captivating chronicles of duplicity, audacious discoveries, and the severe repercussions in the high-stakes world of finance. Tune in to Tax Crime Junkies as Bailey guides you through the anatomy of this formidable white-collar crime: a plot that will keep you at the edge of your seat until the very end.
 
You can purchase Richard's exciting new book at amazon: https://www.amazon.com/Pirate-Cove-Insiders-Infamous-Southport/dp/1610886127

Episode 30 The Southport Scandal: Unraveling a Financial Prodigy's Web of Deceit

Show Notes:
Welcome back to another episode of Tax Crime Junkies! In this thrilling episode, we dive deep into the infamous Southport Lane scandal, a story of financial manipulation, deceit, and a downfall that shook the world of private equity.
Hosts: Dom and Tom
Special Guest: Richard Bailey, Certified Fraud Examiner and author of "Pirate Cove:
An Insider's Account of the Infamous Southport Lane Scandal"
 
Episode Highlights:
Introduction to Richard Bailey (00:02:00): We introduce our special guest, Richard Bailey, whose expertise as a certified fraud examiner brings unique insights into the Southport Lane scandal.
The Southport Lane Scandal Explained (00:05:00): Richard delves into the intricate details of the scandal, unraveling the complex financial schemes orchestrated by Alexander Chatfield Burns, a young financial prodigy.
Inside the Mind of a Fraudster (00:15:00): A discussion on the psychological aspects driving individuals like Burns to commit such extensive financial crimes.
The Red Flags and Oversight (00:20:00): We explore the missed red flags and the failure of regulatory oversight that allowed the scandal to flourish.
Richard Bailey's Personal Experience (00:30:00): Richard shares his personal experiences and challenges in uncovering and dealing with the ramifications of the scandal, including his interactions with Burns.
 
Links and Resources:
Richard Bailey's Book: "Pirate Cove: An Insider's Account of the Infamous Southport Lane Scandal"
Contact Information:
Website: TaxCrimeJunkies.com
Twitter and Instagram: @TaxCrimeJunkies
Credits:
Produced by: Vizon
Music by: Vizon
Next Episode Preview: Stay tuned for our next episode where we delve into another gripping tax crime story that will keep you on the edge of your seat!
Thank you for listening to Tax Crime Junkies. Don't forget to leave us a review and subscribe for more episodes. Until next time, stay curious!

EPISODE 29:DELINQUENT JUDGES AND JUVENILE DELINQUENTS PART II

Tax Crime Junkies: “Delinquent Judges and Juvenile Delinquents” - Part Two
Welcome back to the gripping conclusion of our two-part series on the notorious "Kids for Cash" scandal. Hosts Dominique Molina, a CPA certified tax strategist, and Tom Gorczynski, an enrolled agent and tax instructor, delve deep into the corrupt world of two Pennsylvania judges, Mark Ciavarella and Michael Conahan.
Episode Highlights:
The Kids for Cash Scandal: Unpacking the scandalous activities of Judges Ciavarella and Conahan who exploited their positions to make millions by sentencing first-time juvenile offenders to detention centers for minor infractions, often without fair trials or due process.
Financial Schemes and Cover-ups: The hosts reveal how the judges used LLCs, luxury properties, and dubious rental agreements with Robert Powell, the investor behind the detention centers, to launder their illicit gains.
The Unraveling of a Scheme: The episode details how the FBI and IRS began investigating the judges, leading to a grand jury indictment in 2009 on charges including racketeering, fraud, money laundering, and tax violations.
Impact on Victims: The profound and devastating impact on the lives of the juveniles and their families is highlighted, including the case of Hillary Transue, a teenager wrongfully penalized for a harmless MySpace prank.
Legal Repercussions: The legal downfall of Ciavarella and Conahan is discussed, culminating in substantial prison sentences and restitution payments, while emphasizing the irreversible damage caused to countless young lives.
Advocacy and Reform: The episode acknowledges the efforts of victims like Hillary Transue in advocating for juvenile justice reform.
Resources for Listeners: For those interested in learning more, the hosts recommend the book “Kids for Cash” by William Ecenbarger and the 2013 documentary directed by Robert May.
Closing Thoughts:
In this compelling and heart-wrenching episode, "Tax Crime Junkies" not only exposes the depths of judicial corruption but also sheds light on the far-reaching consequences of such heinous acts. The hosts remind us of the importance of bringing such cruel injustices to light and advocate for continued vigilance and reform in the juvenile justice system.
Stay Connected: Don’t forget to subscribe for more intriguing stories and leave a five-star review. Share with friends and join us again as we unravel more complex tax crime mysteries.
“Every crime has a trail that leads to the truth.” - Dom and Tom, Tax Crime Junkies

Episode 28: Kids for Cash: The Dark Side of Juvenile Justice Part 1

Episode Title: Kids for Cash: The Dark Side of Juvenile Justice
Episode Summary: In this riveting two-part episode of "Tax Crime Junkies," hosts Dominique Molina and Tom Gorczynski delve into the infamous Kids for Cash scandal. This series uncovers the shocking exploitation of the juvenile justice system by two Pennsylvania judges, Mark Ciavarella and Michael Conahan, who used their positions for personal financial gain. The episode unfolds a tale of corruption, greed, and the devastating impact on the lives of young offenders.
Key Highlights:
The Startling Case of Matthew:
The episode opens with the story of 13-year-old Matthew from Luzerne County, Pennsylvania, who is detained for throwing a piece of beef during a domestic dispute.
Judge Mark Ciavarella, known for his tough stance on juvenile crime, delivers a harsh and disproportionate sentence to Matthew, sending him to a private juvenile facility.
The Rise of Judge Ciavarella and Conahan:
Ciavarella's 1995 campaign, based on tough-on-crime rhetoric, leads to his election as a judge.
He shares a personal anecdote highlighting his belief in harsh discipline, shaping his judicial philosophy.
Development of PA Child Care:
Ciavarella and Conahan play key roles in the establishment of PA Child Care, a private juvenile facility, with local attorney Robert Powell and builder Robert Mericle.
This development marks the beginning of their corrupt practices.
Illegal Kickbacks and Ethical Breaches:
The judges receive nearly a million dollars in finder's fees from Mericle, a glaring violation of judicial ethics and legal standards.
They manipulate the system to ensure PA Child Care's use and profitability, guaranteeing their financial benefit.
Zero Tolerance and Injustice:
Ciavarella extends his zero-tolerance policy, resulting in excessive sentences for minors committing minor offenses, thereby filling PA Child Care.
The judges conceal their illicit earnings, failing to report them on financial statements, in a stark display of hypocrisy and corruption.
Tragic Stories of Young Lives Altered:
Numerous cases are highlighted where minors are unfairly sentenced for trivial misdeeds, profoundly impacting their lives and their families'.
Parents and communities are left bewildered and distressed by the injustice meted out in Ciavarella's courtroom.
The Downfall Begins:
Part Two teases the emergence of a determined mother seeking justice, which plays a crucial role in exposing Ciavarella and Conahan's corruption.
The next episode promises to explore the dramatic unraveling of the judges' corrupt scheme and the consequential trial.
Closing Thoughts: The hosts express gratitude to the listeners and encourage them to tune in for the next episode, promising further insights into the scandal's resolution. They emphasize the importance of awareness and accountability in the justice system.
Join us next week for the continuation of this harrowing story in "Kids for Cash: The Dark Side of Juvenile Justice. Part 2" Subscribe, share, and stay tuned for more episodes where the truth behind each crime is painstakingly uncovered.

Episode 27: The Taxing Truth: Inside Stories from the IRS Frontline

Episode Summary:
In this gripping episode of "Tax Crime Junkies," we are joined by Anna Mace, a former IRS Revenue Officer and author of "Tax Me If You Can: Tax Cheats, Government Waste, and the Shooter." Anna's 15-year tenure at the IRS, filled with intense experiences and critical insights, shapes a fascinating discussion about the complexities of tax collection, government bureaucracy, and taxpayer interactions.
Key Highlights:
Anna's IRS Journey:Anna shares her journey as a Revenue Officer, revealing the unanticipated dangers and emotional challenges of the role. She discusses a harrowing incident where she witnessed a taxpayer's suicide, a profound experience that impacted her both personally and professionally.
Challenges in the IRS:Anna delves into the difficulties she faced within the IRS system, including the lack of support for mental health and the stress-inducing environment. She talks about her decision to excel despite these challenges and her expertise in complex tax issues.
Dangerous Encounters:The episode covers the Randy Novak case, illustrating the severe risks IRS officers face from taxpayers driven by intense hatred toward the government. Anna emphasizes that this hatred often extends beyond the tax system and is directed at anyone representing the government.
Transition to an Enrolled Agent:Post-retirement, Anna became an enrolled agent, switching sides to represent taxpayers. This shift offered her a unique perspective on the IRS's operational inefficiencies and the emotional toll of tax problems on individuals.
Writing 'Tax Me If You Can':Anna recounts the challenges she faced in publishing her book, from navigating IRS protocols to rewriting her manuscript to comply with privacy concerns. Her struggle underscores the bureaucratic inefficiencies within the IRS.
Advocacy for Change:The podcast explores Anna's suggestions for improving IRS services, including enhancing the quality of customer service and eliminating unannounced house calls by revenue officers.
Conclusion:
Anna Mace's insights provide a rare glimpse into the inner workings of the IRS, the emotional burden of tax collection, and the bureaucratic hurdles that both taxpayers and IRS employees face. Her story is a compelling call for empathy, efficiency, and systemic change within the tax collection system.

HOW TO NOT GET AWAY WITH MURDER - THE CASE OF RANDY NOWAK

Episode Summary: In this gripping episode of "Tax Crime Junkies," hosts Dominique and Tom delve into a true crime story that intertwines tax evasion with a murder-for-hire plot. The episode focuses on Randy Nowak, a Florida-based carpentry contractor and antique car enthusiast, who finds himself in hot water with the IRS. When faced with an audit and the discovery of his hidden offshore millions, Randy panics and spirals down a dark path.
Key Highlights:
The American Dream Turned Nightmare:
Randy Nowak, a family man and business owner, faces an IRS audit.
His failure to file certain forms and pay payroll taxes leads to severe penalties and potential jail time.
A major twist reveals Randy's millions hidden in an offshore account.
A Desperate Plan:
Randy seeks help from his business associate, Walter McGhee, rumored to have connections with the Outlaws motorcycle gang.
Believing his situation to be dire, Randy contemplates hiring a hitman to eliminate his IRS auditor, Christine Brandt.
Undercover Operations and the Hitman “Reaper”:
Walter, alarmed by Randy's proposition, cooperates with authorities, leading to an undercover investigation.
An FBI agent, posing as hitman "Reaper," engages with Randy, who provides detailed information for the planned assassination.
The Downfall:
Randy's plot unravels as he's arrested while attempting to pay the second installment to "Reaper."
At trial, Randy's defense crumbles, revealing a lack of remorse and a focus on his financial losses over the gravity of his actions.
A Tragic End:
Randy is convicted and sentenced to 30 years in prison, where he maintains his innocence until his death.
Closing Thoughts: Dominique and Tom reflect on the absurdity and dangers of attempting to evade the law, especially when it involves federal agencies like the IRS. They emphasize the importance of ethical conduct and the severe consequences of letting greed cloud judgment.
Next Episode Tease: Join us next week as we interview a former IRS collections officer who knew Christine Brandt the target of Randy Nowak's murder plot.  

Episode 25: The Illusion of Easy Money: Unmasking the Secret Escrow Scam

Show Notes:
Hosts Dominique and Tom introduce the episode's theme, focusing on a sophisticated scam targeting homeowners.
The hosts discuss the allure of easy money:, describing how the scam preyed on new homeowners with the promise of a secret escrow account leading to large tax refunds.
Unpacking the Scam:
The mechanics of the scam are explained, highlighting how the fraudulent scheme involved amending tax returns and fabricating financial documents.
The Players:
Introduction of the key figures behind the scam: Iran Backstrom, Arthur Daniels (aliases Shariyf Noble and Mehef Bey), Aaron Aqueron, and Yomari Febres.
The Scheme in Action:
Detailed breakdown of how the scam was executed, including the preparation of false tax forms and the illicit recruitment of clients.
Victims and Windfalls:
Discussion of the impact on victims who received large refunds, and the subsequent challenges they faced when the IRS began investigations.
Legal Repercussions:
Exploration of the legal fallout for the scammers, including indictments and convictions.
Closing Thoughts:
The hosts reflect on the importance of skepticism in financial matters and the dangers of too-good-to-be-true schemes.
Final Advice:
Reminder to listeners to always consult with reputable professionals in financial and tax matters.
A sneak peek at next week's episode, continuing the journey into the world of tax crimes and financial fraud.
 
Credits:
Hosts: Dominique Molina and Tom Gorczynski
Music: Vizon 
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Episode 24: How Sarma Melngailis, Queen of Vegan Cuisine, Became a Runaway Tax Fugitive Part II

Show Notes: Tax Crime Junkies Episode - "The Vegan Vixen and the Vegas Vanishing Act" (Part 2 - Continuation)
In the thrilling conclusion of our episode on Sarma Melngailis, we delve even deeper into the shocking aftermath of her fall from grace and the complex web of deceit spun by her husband, Anthony Strangis.
The Legal Consequences:
Sarma and Anthony faced serious charges, including grand larceny, tax fraud, and labor violations, with a potential prison sentence of up to 15 years if convicted.
Sarma was offered a plea deal that would entail up to three years in prison if she pleaded guilty to the top charge of second-degree grand larceny.
Anthony Strangis received a one to three-year prison sentence but was released after serving a year and three days. He was ordered to pay back the funds to investors and serve five years of probation.
A Troubled Relationship:
During Sarma's trial, it was revealed that she had an affair with her high-profile defense attorney, Jeffrey Lichtman, who previously represented El Chapo.
The affair spanned from February 2017 to May 2018, and X-rated messages exchanged during this time were later acquired by the New York Post.
Sarma's Path to Redemption:
Sarma Melngailis eventually pleaded guilty to grand larceny, tax fraud, and conspiring to defraud, admitting to stealing $1 million from her shuttered restaurant, Pure Food and Wine.
She received five years of probation following four months of incarceration on Rikers Island.
Sarma has been diligently working to pay off her debts, including using the earnings from selling the rights to her story in the Netflix documentary "Bad Vegan" to pay her former employees.
A Glimpse into Sarma's Life Today:
Sarma filed for divorce from Anthony Strangis in May 2018 and launched a personal website, "Sarma Raw," where she shares her story.
As of January 2019, she was living in Harlem with her dog Leon, enjoying a quieter life.
She expressed her desire to reopen her vegan restaurant if given the opportunity, as she still believes New York would welcome her back.
Sarma's Comeback Attempt:
In a surprising twist, Sarma is reportedly making a sensational comeback attempt by trying to reopen her former restaurant, Pure Food and Wine.
She has been considering various ways to repair the damage caused by her past actions and debts.
Conclusion:
Sarma's story is one of redemption, resilience, and the pursuit of a second chance in the culinary world.
We invite you to share your thoughts on Sarma's journey and whether you believe she should make a comeback. Let us know in the comments.
Join us again next week as we continue our mission to uncover the loopholes and close them for good in the world of tax crime. Remember, every crime leaves a trail that leads to the truth!
 
Audio Credit: Bad Vegan, Netflix

Episode 23: How Sarma Melngailis, Queen of Vegan Cuisine, Became a Runaway Tax Fugitive Part I

In this gripping episode of Tax Crime Junkies, dive deep into the whirlwind world of Sarma Melngailis, the culinary genius behind New York City's famed vegan restaurant, "Pure Food and Wine." From her meteoric rise in the culinary world to her unexpected entanglement with the enigmatic Anthony Strangis, discover how ambition, love, and deception can intertwine in the most unexpected ways. As financial mysteries unravel and personal betrayals come to light, join hosts Dominique and Tom as they uncover the truth behind the headlines. What led to the sudden closure of a celebrity hotspot? How did a Domino's Pizza order become the unexpected twist in this tale? Tune in to find out!
 
Show Notes:
00:00 - Introduction to the episode and hosts Dominique and Tom.
02:15 - The allure of "Pure Food and Wine" and its impact on NYC's culinary scene.
05:30 - Sarma Melngailis: The woman behind the brand.
09:45 - The unexpected entry of Anthony Strangis (aka Shane Fox) into Sarma's life.
15:20 - The financial intricacies and challenges faced by the restaurant.
20:00 - The psychological manipulation and the promises of immortality.
25:40 - The unraveling of the financial web: From missing funds to unpaid employees.
30:15 - The sudden disappearance of Sarma and Anthony.
35:00 - The Domino's Pizza order that changed everything.
38:30 - Closing thoughts and a teaser for the next episode.
Stay connected with Tax Crime Junkies:
Website: www.taxcrimejunkies.com
Instagram: @taxcrimejunkies
Twitter: @taxcrimejunkies_podcast
Email: contact@taxcrimejunkies.com
Recommended Resources:
Documentary on Sarma Melngailis and Anthony Strangis.
Forbes magazine's "All Star New York Eateries" list.
Well and Good interview with Sarma Melngailis.
Support the Show: If you enjoyed this episode, please consider subscribing, leaving a review, and sharing with a friend! Your support helps us bring more intriguing tax crime stories to light.

Episode 22: Desperate Deals: The Rise and Fall of a King and His Tax Castle

Episode Title: Desperate Deals: The Rise and Fall of a King and His Tax Castle
Episode Summary:
In this gripping episode of Tax Crime Junkies, hosts Dom and Tom delve into the shocking true story of King Isaac Umoren, a tax preparer turned criminal mastermind. From impersonating an FBI agent to selling a fraudulent tax business, Umoren's tale is a cautionary one, filled with deceit, audacity, and a web of lies that ensnared not just him but also his employees and clients.
What You'll Learn:
How King Isaac Umoren used his tax preparation business as a front for multiple fraudulent schemes.
The emotional and financial toll on the victims, including the staff and the new owners of the fraudulent business.
The legal consequences Umoren faced, including 18 charges related to the fraudulent business sale.
Insights into the IRS investigation and the patterns of fraud detected.
Key Moments:
Introduction (00:00-03:00): Dominique and Tom set the stage with a relatable problem—clients failing to pay for services—and introduce the main story.
The Impersonation Act (03:01-08:00): The hosts describe Umoren's audacious impersonation of an FBI agent and how it led to his initial arrest.
The Fraudulent Business Sale (08:01-15:00): Learn how Umoren sold his tax business based on inflated values and fraudulent documents, fooling the new owners.
The Human Toll (15:01-20:00): Dominique and Tom discuss the impact of Umoren's actions on his employees, who were left jobless and financially strained.
The Legal Consequences (20:01-25:00): The hosts delve into the charges Umoren faced and how his actions caught up with him.
IRS Investigation (25:01-30:00): Tom explains the IRS's role in uncovering the fraudulent activities within the tax preparation business.
The Downfall (30:01-35:00): The story comes full circle, reflecting on the broader implications of unchecked ambition and deceit.
Conclusion and Teaser for Next Episode (35:01-36:00): The hosts wrap up the episode and tease what's coming up next on Tax Crime Junkies.
 
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Legal Disclaimer:
This podcast is for entertainment purposes only. All facts are sourced from public records or similar, and the episode is not intended to defame or misrepresent anyone involved.
Next Episode:
Stay tuned for our next episode, where we'll bring you more stories of tax and financial crimes—and how to avoid even the appearance of impropriety.  We'll be starting a 2 part series on How Sarma Melngailis, Queen of Vegan Cuisine, Became a Runaway Tax Fugitive