Houston Man Sentenced to Thirty Years in Prison for Money Laundering Conspiracy and Tax Crimes Relating to Second-Hand Drug Scheme
Houston
   
 
More Today's News:
ߦ   Police Probe Discovery Of Dead Man Discovered In Yard
ߦ   Reflections of a Police Wife
ߦ   Texarkana Physician Agrees to Pay $118,000 to Settle Medicare Billing Fraud Allegations
ߦ   Texas man charged with killing 12 women, police look at 750 other deaths for possible links
ߦ   The dogs of Texas are running out of time
ߦ   U.S. Government Files Suit Against Webster Aviation Company
ߦ   Widow Of Fallen Fort Worth Officer Launches Campaign Of Kindness In Husband’s Memory
ߦ   Woman Convicted of Animal Cruelty. Pets Starved to Death After She Left Them Behind.
ߦ   Woman Sentenced for Importing Meth
ߦ   Attorney General William P. Barr Delivers Remarks at the National Association Of Police Organizations’ 26th Annual Top Cops Awards
ߦ   Coast Guard medevacs cruise ship passenger 66 miles offshore Galveston
ߦ   Hospital Employee Jailed For For Stealing Patients Credit Card Info
ߦ   Nearly 100 Charged in Massive Marriage Fraud Scheme
ߦ   Smith County Man Sentenced for Firearms Violations
ߦ   Trials In Fort Bend County This Week
ߦ   Woman Pleads Guilty To Bank Robberies
ߦ   Austin Man Pleads Guilty to Fraudulent Scheme to Solicit Hundreds of Thousands of Dollars in Contributions to Scam-Pacs
ߦ   Colombian Narcotics Kingpin Pleads Guilty for Bribing Former Federal Agent to Dismiss Indictment
ߦ   Defendant Sentenced to Life for Aggravated Sexual Assault of a Child
ߦ   El Paso Man Sentenced For Distributing Child Porn
ߦ   Fifty Club's Forty-Eighth Award Luncheon
ߦ   South Texas ICE deportation officers remove previously deported Salvadoran gang member wanted for aggravated homicide and other criminal charges
ߦ   Two North Texas Doctors, One Nurse Sentenced to Prison for Federal Drug Trafficking Violations
ߦ   $3,000 Reward Offered for Most Wanted Sex Offender from Brownsville Area
ߦ   Bond set at $250K for man suspected of robbing local bank at gunpoint
ߦ   County Jails Struggle With A New Role As America's Prime Centers For Opioid Detox
ߦ   Dispute between sheriff, commissioner has new Katy-area substation on hold
ߦ   Four Arrested In Best Buy Burglary
ߦ   Investigators Charge Third Man In 2018 Murder.
ߦ   Legal Resident Convicted Of Transporting Illegal Alien

 
Search Archives:

A Houston, Texas, man was sentenced today to 360 months in prison for multiple conspiracy and tax charges, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

On Nov. 14, 2018, a jury convicted Kenneth J. Coleman, 52, of nine counts, including conspiracy to commit money laundering, conspiracy to structure currency transactions, corporate tax evasion, filing false tax returns with the Internal Revenue Service (IRS), and failing to file tax returns.

The evidence at trial established that Coleman facilitated the fraudulent sale of second-hand prescription medications to Utah-based Green Valley Medical Distributors, LLC (Green Valley). Coleman owned Acacia Pharma Distributors Inc. (Acacia) and Four Corner Suppliers Inc. (Four Corner), which purchased bottles of prescription medications from illegitimate sources and then sold them to Green Valley, which then sold the medications to pharmacies as brand-new.

Federal regulation requires wholesale distributors of prescription medications to provide to a buyer a pedigree – a written statement identifying each prior sale, purchase or trade of the drugs being sold that includes the business name and information of all parties to the prior transactions, starting with the manufacturer. Coleman and others acting at his direction created false pedigrees and provided the fraudulent documents to Green Valley. Evidence at trial showed that Green Valley would withhold payment to Coleman until it received these false pedigrees.


Coleman and his co-defendant, Marcus Weathersby, deposited proceeds from the fraudulent sale of these second-hand prescription drugs into Acacia’s and Four Corner’s business bank accounts and used the funds to pay the suppliers of the illicit pharmaceuticals. At trial, the government proved that Weathersby and others acting at Coleman’s direction laundered more than $41.5 million of illicit funds, including over $2.9 million in more than 230 cash withdrawals made in amounts less than $10,000, in order to evade bank-reporting requirements.

Coleman also evaded the assessment and payment of Acacia’s and Four Corner’s income tax liabilities, failed to file an individual tax return for tax year 2011, failed to file corporate income tax returns for tax years 2011 and 2012, and filed false individual income tax returns for the tax years 2012 and 2013. The combined loss of corporate and individual income taxes was more than $700,000.

Coleman’s co-defendant, Weathersby, formerly of Houston, Texas, pleaded guilty to conspiracy to commit money laundering and was sentenced in June 2018 to 58 months in prison. He testified at trial against Coleman.

In addition to the term of imprisonment imposed, U.S. District Court Judge David Hittner ordered Coleman to serve three years of supervised release, imposed a criminal forfeiture money judgment of $20,326,464.17, and ordered Coleman to pay $716,986 in restitution to the Internal Revenue Service.

Principal Deputy Assistant Attorney General Richard E. Zuckerman thanked agents of IRS-Criminal Investigation, the Federal Bureau of Investigation, and the Federal Department of Agriculture, who conducted the investigation, and Trial Attorneys Sean Beaty and Terri-Lei O’Malley of the Tax Division, who prosecuted the case. Principal Deputy Assistant Attorney General Zuckerman also thanked U.S. Attorney Ryan K. Patrick of the Southern District of Texas and his office for their assistance in this matter.

Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.

Post a comment
Name/Nickname:
(required)
Email Address: (must be a valid address)
(will not be published or shared)
Comments: (plain text only)
Printer Friendly Format  Printer Friendly Format    Send to a Friend  Send to a Friend    RSS Feed  RSS Feed
© 1999-2019 The Police News. All rights reserved.