8 Sentenced In Atlanta For $35M Tax Fraud Conspiracy

ATLANTA, GA — Eight members of an Atlanta-based tax fraud and money laundering conspiracy were sentenced for their role in stealing funds from the U.S. Treasury, according to a press release from the Department of justice.

Calvin C. Barnes a/k/a “Big Cal”, Sharon Cecal, Kenneth Cottrell, Zechariah Daniel a/k/a “Zech” a/k/a Leroy Harris, Derrick Lawson, Reynolds Scott III, Anthony Shivers and Calvin C. William a/k/a “Lil’ Cal,” were sentenced on Tuesday, which includes an order to "pay substantial amounts of restitution to claw back the fruits of their criminal conduct and ensure crime doesn't pay," U.S. Attorney Byung J. Pak said.

According to the charges, from 2009 to 2012, they filed over 100 fraudulent corporate tax returns which claimed $35 million in refunds for fuel taxes for off-road company vehicles. $5.6 million of the false claims was given to the schemers before the first arrest of the investigation in 2012.

Watch: Eight Sentenced In Atlanta For $35M Tax Fraud Conspiracy

The investigation found that the claims were made in the names of "hijacked corporations and shell companies," none of which used the off-road vehicles they claimed to have paid gas taxes for.

“Tax fraud schemes are becoming more complex and perpetrators are continually creating new ways to generate fraudulent claims to the IRS,” said James Dorsey, Acting Special Agent in Charge, in the press release. “IRS Criminal Investigation will continue to work with our law enforcement partners in uncovering these schemes and bringing the criminals to justice.”

From the press release:

U.S. District Judge Thomas W. Thrash imposed sentences on the eight defendants, who had all pleaded guilty, as follows:

• Calvin L. Barnes, a/k/a “Big Cal”, 36, of Forest Park, Georgia, was sentenced to one year and one day in prison, followed by three years of supervised release. The court announced that it intends to also order restitution of approximately $1,043,851, but held open the final restitution order for seven days to determine whether Barnes is entitled to credit for certain pre-sentencing payments to the IRS. Barnes pleaded guilty to count six (theft of government funds) on March 1, 2017.
• Sharon Ceacal, 51, of Warner Robins, Georgia, was sentenced on August 2, 2017 to a year and a day in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $1,549,250. Ceacal pleaded guilty to count one (false claims conspiracy) on January 11, 2017.
• Kenneth Cottrell, 33, of Atlanta, Georgia, was sentenced on July 31, 2017 to 6 months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $754,586. Cottrell pleaded guilty to count one (false claims conspiracy) on March 1, 2017.
• Zechariah Daniel, a/k/a “Zech”, a/k/a “Leroy Harris”, 36, of Atlanta, Georgia, was sentenced on August 2, 2017 to two years, four months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $2,566,491. Daniel pleaded guilty to count one (false claims conspiracy) on December 20, 2016.
• Derrick Lawson, 43, of Lithonia, Georgia, was sentenced on August 3, 2017 to one year, six months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $1,021,705. Lawson pleaded guilty to count five (theft of government funds) on February 15, 2017.
• Reynolds Scott III, 49, of Atlanta, Georgia, was sentenced on August 2, 2017 to four months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $1,549,250. Scott pleaded guilty to count one (false claims conspiracy) on December 20, 2016.
• Anthony Shivers, 47, of Lovejoy, Georgia, was sentenced on May 1, 2017 to three years, five months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $505,399. Shivers pleaded guilty to count one (false claims conspiracy) on February 15, 2017.
• Calvin C. Williams, a/k/a “Lil’ Cal”, 48, of Smyrna, Georgia, was sentenced on August 2, 2017 to 10 months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $1,876,014. Williams pleaded guilty to count one (false claims conspiracy) on December 20, 2016.

Three other defendants were previously sentenced for their roles in the scheme, after being charged under separate indictments:

• Charlie Shivers III, of Atlanta, Georgia, pleaded guilty to two counts of filing false claims against the United States on August 9, 2012, and was sentenced to seven years in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $5,630,681.66.
• Kenneth Michael Pettis, Sr., was sentenced to four years, three months in prison, to be followed by three years supervised release. Pettis had tried to cash two large refund checks generated by the scheme, using fake IDs, and pleaded guilty to one count of conspiracy to steal government funds.
• Demetrius Weddle was sentenced to two years, seven months confinement, to be followed by three years supervised release. Weddle pleaded guilty to bank fraud, after being caught trying to cash one of the refund checks generated by the scheme.

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