United States Attorney Karen P. Hewitt and Nathan J. Hochman, Assistant Attorney General for the Department of Justice Tax Division, announced that Daryl Ragsdale pled guilty in federal court in San Diego to tax evasion and mail fraud. Ragsdale entered his guilty plea on November 7, 2008, before U.S. Magistrate Judge Leo Papas, admitting to evasion of federal income taxes for 2002 and mail fraud associated with a false mortgage loan application submitted in 2003. The plea is subject to final acceptance by United States District Court Judge M. James Lorenz, at the time of sentencing.
According to court documents, during 2002 and 2003, Ragsdale operated a telemarketing business in San Diego that solicited investors for Corporate Deposit Program (“CDP”), an entity that raised capital for target companies through investment funds. According to the plea agreement, Ragsdale caused his taxable income, in the form of commission payments from CDP, to be paid to nominee entities, including Cambridge Consulting Services and Integrated Administration System. He also caused Cambridge and Integrated to transfer income to various other nominee corporate entities that he created and controlled, including Saddlecreek and Everest. Ragsdale also had these entities pay for his personal expenses so as to conceal the receipt of taxable income. To further conceal his interest in Everest, Ragsdale incorporated Everest in Nevada and used an unrelated nominee individual to serve as corporate officer and signatory on a business bank account.
Despite earning almost $300,000 in 2002, Ragsdale failed to file a federal individual income tax return. For 2003, Ragsdale filed a federal individual income tax return that under-reported over $28,000 in taxable income that he received from CDP. The total tax loss is over $120,000, and Ragsdale has agreed to pay this amount as restitution.
Also in 2003, Ragsdale caused a false residential loan application to be mailed to World Savings Bank in order to obtain a residential mortgage for a property in San Diego. With the help of the mortgage broker, Ragsdale significantly inflated his gross monthly income on the loan application to ensure that he obtained the mortgage loan from World Savings. World Savings eventually issued the loan to Ragsdale based on the false information.
Ragsdale is scheduled to be sentenced on February 9, 2009, at 8:30 a.m. before United States District Judge Lorenz.
DEFENDANT Case Number: 08cr3750-L
Daryl Ragsdale San Diego, CA Age: 35
SUMMARY OF CHARGES
Tax Evasion in violation of Title 26, United States Code, Section 7201
Maximum penalty is five years in prison and fine not to exceed $250,000
Mail Fraud (affecting a financial institution) in violation of Title 18, United States Code, Section 1341
Maximum penalty is 30 years in prison and fine not to exceed $1,000,000
AGENCIES
Internal Revenue Service – Criminal Investigation Division
Federal Bureau of Investigation
United States Postal Inspection Service
