Tax Crime Junkies

Episode 18: When Tax Work Pressures Lead to Murder

Trigger WARNING: This episode contains discussions of extreme acts of violence with guns in the workplace.  Listeners take care.  
While some people are able to receive constructive criticism and move on, others can obsess on what they see as a failure, and when they blame their boss, co-workers, or even just the person that does the firing.
 
This is the story of Anthony LaCalamita, who, after being fired during tax season, plotted the worst revenge possible against his co-workers and boss at the accounting firm where he worked.  

Uncharted Territories: Expatriation, Risky Returns, and the IRS’s Watchful Eye: The Story of Oleg Tinkov

In this episode, Tax Pros Dominique and Tom discuss the recent case of billionaire Russian bank magnate Oleg Tinkov, who pleaded guilty to tax fraud and agreed to pay over $500 million for misrepresenting his net worth on a tax form. Join us as we delve into the details of the case and offer tips and advice to help listeners avoid making similar mistakes when it comes to taxes.
 
Key takeaways:
The importance of being honest and accurate when reporting your net worth and income on tax forms
Understanding the tax laws and regulations that apply to you, especially if you are a high-net worth individual or a U.S. citizen living abroad
The consequences of tax fraud, which can include significant fines, penalties, and even prison time
The importance of seeking professional help and advice when it comes to tax planning and compliance
 
This episode provides valuable insights and practical tips for anyone looking to ensure they are in compliance with tax laws and regulations and avoid any potential legal trouble. Tune in now! 

Episode 16 Web of Suspicion: Unraveling the Mystery Surrounding John McAfee - Part 2

In this episode, CPAs Dominique and Tom discuss the life, death, and tax crimes of John McAfee! 
Dominique and Tom, unpack part 2 of a story about John McAfee, a tech pioneer and libertarian who was also a fugitive on the run. The hosts unpacked a lot about his colorful and controversial life in the previous episode and continue to do so in this one. They start by discussing what happened to the dead dogs in McAfee's backyard and reveal that the government had cut off their heads to look for bullets. They also delve into McAfee's biotech start-up called QuorumEx, which aimed to develop natural antibiotics with plants in the Belizean rainforest. However, there were doubts about his authenticity as he weirdly told a reporter that he and his colleagues were searching for an herbal version of Viagra for women. McAfee's female business partner and researcher, Ms. Adonizio, had a fallout with him and accused him of being a horrible person, controlling, manipulative, and dangerous. So many layers to the mans story and you are in for a rollercoaster of a ride! 
Tune in now! 

Episode 15: Web of Suspicion: Unraveling the Mystery Surrounding John McAfee - Part 1

Episodes Notes:
 
In this episode, CPA Dominique and EA Tom discuss the life, death, and tax crimes of John McAfee! 
Dominique and Tom, introduce a two-part series on the life and death of John McAfee. John was the founder of the first antivirus software company and was a tech pioneer who made millions of dollars. He was also a fugitive who claimed to be hunted by government agencies and drug cartels alike. He had run-ins with the IRS for not filing tax returns for over a decade. John used various tactics to hide his income and assets from the IRS, such as directing his income to bank accounts and cryptocurrency exchange accounts held in the names of nominees and using shell companies and trusts to hold his properties and assets. He fled the country in 2019 when he was facing charges related to a cryptocurrency scam. He was arrested in Spain in October 2020 and extradited to the United States in March 2021. John pleaded not guilty to the tax evasion charges but was found dead in his prison cell in Barcelona just hours after a Spanish court agreed to extradite him to the US to face tax evasion charges. There were rumors that he was killed off like Epstein, but it is unknown if that is true. Dom and Tom discuss John's impact on the tech industry and the irony that he never used his own antivirus software on his computers. Join us! 
 
Introduction: The episode opens with an overview of the case, introducing John McAfee and Gregory Faull as neighbors living in Ambergris Caye.
Tension and Conflict: We discuss the strained relationship between McAfee and Faull, exploring Faull's impatience with unleashed dogs and his encounters with the aggressive animals as he made his way to a nearby beach bar.
Suspicion Arises: The show delves into the events leading up to the dogs' death and Faull becoming the prime suspect due to his expressed desire to harm the animals.
A Shocking Discovery: The episode takes a dramatic turn as Faull is found dead the following day, laying in a pool of blood with a 9mm bullet casing nearby. McAfee becomes the primary "person of interest" in the case.
Investigation and Scrutiny: We delve into the investigations that ensued, examining the intense scrutiny placed on McAfee, given his complex relationship with Faull and his proximity to the crime scene.
Twists and Turns: The show uncovers the riveting twists and turns that surround the case, including McAfee's response to being implicated and the global media attention that followed.
Unanswered Questions: We explore the lingering questions surrounding Faull's death, the ongoing investigation, and the mounting intrigue surrounding McAfee's involvement.
The Legacy of the Case: The episode reflects on the lasting impact of this chilling chapter in the life of John McAfee and its implications for his future endeavors.

Episode 14: Fatal Secrets: The Twisted Saga of a Tax Attorney’s Vengeance Part II

This episode concludes the twisted saga of a tax attorney’s vengeance, putting together the last of the puzzle pieces to finally determine just what happened to Ashley Pallow. When we last left off, there had already been multiple tax crimes and four murders associated with this case. Michelle was in jail for an unrelated charge and new witness Christopher Higgins had just entered the scene. Christopher, another former employee of Ashley’s, takes the story in a whole new direction when he comes forward to state that Thomas confessed to murdering Ashley, in great detail, while they were having lunch together at a Chili’s. He claims to have murdered Ashley in an attempt to protect Michelle. Although the autopsy results do not fully corroborate the details of Chris’ story, Thomas is ultimately found guilty and sentenced to life in prison.
 
Talking Points:
Michelle’s phone conversations with Thomas are monitored while she is in jail. She is heard promising to take the fall for Thomas as long as he promises to raise her children
Another tax preparer and former employee of Ashley, Christopher Higgins steps up with a completely different story of events. Casual conversation in a Chili’s between Thomas and Christopher took a turn when they started talking about OJ Simpson
Thomas explains to Chris in detail his reasons for killing Ashley. He claims to have hit Ashley so hard that he broke his jaw. He states that he called Michelle for help with the body 
The last time Thomas had seen his boss, Ashley had said that someone was stealing from him. He believed it to be Michelle and was thinking about turning her in. If she was reported, it would violate her probation. Thomas decided to kill Ashley to protect Michelle
The initial autopsy results reveal there is not enough damage to Ashley’s jaw, face, and chest considering the force that strangulation would have required
Michelle asks Thomas on the phone call while in jail for details about how the death occurred so that she could sound more convincing
Thomas is found guilty, convicted of first degree murder and sentenced to life. Michelle is charged with accessory after the fact and a 30 year sentence
Thomas’ lawyer contends that Thomas never got a fair trial, submits a request for a new trial but is denied
The state becomes aware of another potential witness, Samantha Friar, who is cellmates with Michelle. She claims that Michelle admitted to killing Ashley during consensual sex 
Another inmate comes forward about hearing Michelle and Samantha conspiring to fabricate a confession
Samantha introduces the idea that Ashley was a drug addict 
2017 letter written by Michelle claiming that everything she had said was out of fear of losing her children
Years before Ashley’s murder, his brother Adam was killed by the police while he was in police custody at 29 years old
In 2021, Ashley’s son Matthew was shot and killed by police when he was just 28 years old. He called 911 for psychiatric help during an episode and was shot and killed
The potential dangers of toxic work environments
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Episode 13: Fatal Secrets: The Twisted Saga of a Tax Attorney’s Vengeance

This episode unveils the twisted saga of a tax attorney’s vengeance that resulted in not one, but multiple murders. Ashley Pallow was a tax attorney from St. Lucie, Florida who had a bit of a reputation for being aggressive and for pushing the boundaries of the law. Incredibly, Ashley himself had been charged with murder prior to his own, but was acquitted due to lack of evidence. Ashley seems to be a magnet for murder! Just six months before ending up dead and wrapped in an acid-covered rug in his storm cellar, a man named John Wilson attempted to murder Ashley for having an alleged affair with his girlfriend. After the police find Ashley’s body, they investigate two of his tax employees, Thomas Bard and Michelle Lockridge who had been the last people thought to see Ashley alive. In response to her arrest, Michelle discloses that she was having a paid sexual relationship with Ashley and that his death had been accidental, but later she changes her story to blame Thomas. To make matters even more confusing, another witness, Christopher Higgins, has a different story for what happened to Ashley, sending the investigation in a new direction.
 
Talking Points:
Who was Ashley Pallow and what was he like according to his family and employees
What Ashley’s tax office at home was like
In 2000, Ashley is charged with 3rd degree murder and charges are dropped 
January 2010, Ashley is arrested on charges of organized dealing in stolen property and 2nd degree grand theft
Jane Hoffman, a former employee, calls in a welfare check on Ashley and the police discover that he is missing. The sheriff’s office offers a $50,000 reward provided by Ashley’s father for information leading to the arrest or conviction of the person or persons responsible
Ashley’s body is discovered in a storm cellar on his own property wrapped in a rug, covered in acid
Another person by the name of John Wilson had been arrested six months earlier for trying to kill Ashley. He was convinced his girlfriend was having an affair with Ashley. Earlier that day, he murdered his own mother and so he was in jail at the time of Ashley’s murder
Police investigate two long time employees of Ashley’s, Thomas Bard and Michelle Lockridge. They provide conflicting stories of their last time seeing their boss
Michelle had a prior tax crime history for embezzlement 
Michelle is arrested and afterward her children go to live with her dad. Her 10 year old daughter is then murdered and found wrapped in a white dress in the woods near their home. The prime suspect is Michelle’s 15 year old son
March 2016, the brother admits to shooting his sister but gives three different versions of the story
Michelle claims she had a sexual relationship with Ashley and that he paid her and several of her friends for sex. She says that he wanted her to choke him and that the asphyxiation was accidental. She claims Thomas helped her hide the body
Later, Michelle changes her story and says Thomas killed Ashley
Another witness, Christopher Higgins, has a different story. Tune in for Part 2 to see how it changes the investigation!
 
Quotes
“Yeah that might be a little uncomfortable for me…he sounds just like a typical tax pro.“ (4:09-4:43 | Dominique) 
"As more information surfaces, Ashley's story becomes even more unbelievable. It turns out that he had once been charged with murder himself!" (8:03-8:16 | Tom) 
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Episode 12: Uncovering the Costly Consequences of CPA Burnout: The Case of Roger Stadtmueller’s Tax Fraud

In this episode, CPAs and hosts Dominique and Tom cover information about tax fraud cases and how they can be prevented. Today, the main focus is on the tax fraud case of the very overwhelmed Roger Stadtmueller, a certified public accountant who had his license revoked and was fined for committing tax fraud.
 
We also discuss the stress of tax season and how easy it is for CPA’s to experience burnout. Life doesn’t stop for accountants simply because of deadlines and in this case, life’s problems continued to mount for Roger Stadtmueller like hot air balloon accidents and lawsuits, deaths, divorces and business failures. Even though life presents many challenges, it is important to be aware of the consequences of engaging in fraud and asking for help when the going gets tough.
 
This episode as always provides valuable insights and practical tips for anyone looking to ensure they are in compliance with tax laws and regulations and avoid any potential legal trouble. Tune in now! 
 
 
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Episode 11: From Garbage Man To Jailbird: His Career Took A Trashy Turn and He Took His CPA With Him Part II

This episode reveals the shocking conclusion of the story of Wagdy Guirguis and his CPA Michael Higa. The IRS’s investigation of Hawaii Pacific Finance reveals that for nearly 12 years, Wagdy was having Michael divert funds to his personal accounts, amounting to $1.3 million. In an attempt to make it seem like he did not owe any taxes, Wagdy orders his bookkeeper to remove certain transactions from the records. In 2017, both Wagdy and Michael were indicted on multiple charges of tax evasion. In 2019, Wagdy was found guilty of all charges against him and sentenced to 5 years in prison, 3 years of supervised release and $3 million in restitution. In spite of Michael’s lawyer trying to pin everything on Wagdy, Michael ends up convicted on one count of filing false corporate income tax returns and is sentenced to 40 months in prison, 3 years of supervised release, and just over $2 million in restitution. Sadly, Michael was diagnosed with stage 4 kidney cancer and was granted compassionate early release. Additionally, Wagdy himself passed away while in prison at 79 years old.
 
Talking Points
The IRS finds that from 2001-2012 Hawaii Pacific Finance was used to divert approximately 1.3 million dollars into Wagdy’s personal accounts 
Wagdy orders his bookkeeper to ‘clean up’ the balance sheet for Hawaii Pacific Finance and she declines; Michael instructs her exactly what she has to remove from the balance sheet while Wagdy watches over her shoulder as she is forced into doing his dirty work
One of Wagdy’s employees at GMP gets called to testify before a grand jury and Wagdy tries to force her to sign a statement saying that he had no knowledge of any wrongdoing. She refuses and leaves her job that day.
In August 2017, both Michael and Wagdy were indicted on multiple charges of tax evasion and conspiracy to defraud the government. They deny these charges. They are given a trial date of October 2018 and released on bond
Wagdy seeks permission to go to the mainland for his wife’s double lung transplant treatment; This request is denied. Michael is faced with restrictions that clash with his work as a CPA
Michael claims that Wagdy was to blame for everything and tries to have the charges against him dismissed. He then tries to get the case dismissed on the grounds that GMP is registered in Guam and that the US does not have jurisdiction over the tax returns. Section 6012 of the Internal Revenue Code shows this excuse is invalid.
Wagdy and Michael have separate lawyers with different approaches to the defense. Michael’s lawyers continue to attempt to downplay his role at GMP and put it back on Wagdy
In 2019, Wagdy is sentenced to 5 years in prison, 3 years of supervised release, and over $3 million in restitution. Michael is sentenced to 40 months in prison, 3 years of supervised release, and just over $2 million in restitution. GMP Associates and many of Wagdy’s other businesses are forced into involuntary dissolution
At the end of 2020, Michael files for compassionate early release after being diagnosed with Stage 4 Kidney Cancer
Just after Wagdy’s conviction, his wife passes away, and in March 2022, Wagdy dies in prison
 
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Episode 10: From Garbage Man To Jailbird: His Career Took A Trashy Turn and He Took His CPA With Him

This episode unveils the beginning of the story of Wagdy Guirguis, a garbage man turned jailbird whose career took such a trashy turn that he even took his CPA down with him. Wagdy owned multiple business entities, one of which was GMP Associates. Right from the beginning when he founded GMP Associates in 1999, he began to perform payroll tax evasion. When the IRS realized he was stealing from his employees, they added over $800,000 in trust fund recovery penalties to his debt. In 2003, Wagdy decided to hire a CPA named Michael Higa to be the financial controller for GMP, making Michael a co-conspirator to his tax crimes. Dom and Tom return to talk about the importance of being extremely careful of what responsibilities you agree to as a tax accountant, the financial and legal consequences of betraying clients’ trust, and what ended up happening to Wagdy and Michael. 
 
Talking Points:
In 1999, Wagdy creates GMP Associates and starts committing payroll tax evasion, effectively stealing from his own employees
Wagdy has the idea to turn trash into energy. He becomes President of Guam Resource Recovery Partners and attempts to negotiate a contract to be the only garbage disposal company on the island in spite of a local law prohibiting the incineration of trash on Guam
The IRS becomes suspicious of Wagdy and in 2002, sends him a letter ordering the immediate payment of all outstanding employee tax returns along with a large penalty
Instead of making the payments, he hires CPA Michael Higa and ropes him into his schemes
Wagdy opens GMP Hawaii, which is exactly the same as GMP Associates - except it has no tax debts
He continues stealing from his employees and has Michael move the money around so that it is more accessible for his personal use
The IRS sends an additional letter demanding payment, plus even more in penalties
Again, Wagdy creates another entity in an attempt to escape the tax debts
The GMP Entities work a contract for the Federated States of Micronesia. Micronesia fails to pay their bills and payroll expenses start piling up for GMP
Wagdy knows he needs to hide the money from the IRS, so he orders Michael to transfer money around the different entities to various personal accounts, at one point managing to transfer 3 million out of GMP Hawaii to his own account
Wagdy tries to hide the money by putting it into buying a condo, but has the condo legally owned by his wife. He thinks this will protect it from the IRS when they come to collect the debt
Was there finally a prison sentence for Wagdy? Did he end up taking his CPA down with him? Find out in Part 2!
 
 
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Episode 9: The Fall of Steve Martinez: From IRS Employee to Convicted Con Artist Part 2

This episode tells the second half of the story of Steve Martinez, an IRS employee turned con artist who committed fraud and tax evasion, and even attempted to hire someone to murder witnesses against him. Martinez made outrageous requests to the court, including asking for permission to go on a Disney cruise with his family, and later claimed he had Asperger's syndrome to avoid responsibility for his actions. He was ultimately sentenced to 24 years in prison and ordered to pay $14 million in restitution. Dom and Tom are back to discuss the consequences faced by Martinez's friends who had signed his bond, including foreclosure proceedings and legal fees.
 
Talking Points:
January 2012, Steve’s ankle monitor is removed and he experiences freedom on a Disney Cruise with his family. He decides he’s not going back to jail at any cost, even if that cost is murder.
When he returns home, he begins to stalk some of the witnesses on his case as he schemes.
March 2012, Steve slips out early in the morning and goes to the house of Ray, his former gardener. He brings 4 packages filled with documents containing personal identifying information on four individuals, including MaryAnne Harmon and Monique Segal. Steve offers to make Ray rich if he helps him out. He recommends using a silencer and two separate guns, offering to pay him part of the money up front - specifically the $40,000 in cash he had previously given to his limo driver Norman for safe keeping.
Ray does not take the bait and instead decides to turn the information over to the FBI. 
Recordings are obtained of Steve’s murder-for-hire scheme. Are they too prejudicial to be used?
Steve’s defense attorney argues that Steve cannot be held accountable for his actions because he has Asperger’s syndrome.
April 2013, Steve takes a plea deal. 27 people, including Steve’s wife, children, and many clients, show up to support him at his sentencing. They do not believe the charges against him. 
Steve is sentenced to 286 months in prison, $14 million in restitution, and a 500 hour drug program
His friends who had signed off on his bond are now on the hook for Steve violating the conditions. One friend had put his house up as collateral to secure the bond. The court decides to enforce the lien against the house. The court holds Steve’s other friend, the one who had not been willing to put his house up as collateral, responsible for the ½ million dollar bond. They request that the court remit the forfeiture. Eventually the friends are released of all but $13,000 of the bond.
Dom does some digging and finds out that back in 1989, Steve’s defense attorney was also disbarred for stealing money from clients!
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