Bahamian Man Charged withFiling a $2.7 Million False Claim with the IRS

SAN FRANCISCO– LAWFUEL – United States Attorney Scott N. Schools announced that a federal grand jury in San Francisco indicted Rudolph Kermit King aka Klever Rosales, of Nassau, The Bahamas, with filing a false claim with the IRS. This charge is the result of an investigation by the Internal Revenue Service – Criminal Investigation.

According to the indictment, on or about September 20, 2007, in the Northern District of California, Mr. King, presented a claim to the IRS for refund of taxes in the amount of $2,700,000, knowing such claim to be false.

An affidavit filed by an IRS-CI Special Agent in connection with a criminal complaint filed in the same matter alleges that Rudolph King (King) using the name Klever Rosales filed a false claim with the IRS. The false claim asserted that Rosales is the president of Salute Greatness, Inc., a company located in Beverly Hills, CA. On or about July 26, 2007, Mr. King, using the name Klever Rosales, submitted a fraudulent international money order payment to the IRS in the amount of $2.7 million. Mr. King, again using the name Klever Rosales, contacted the Taxpayer Advocate Service (TAS) and requested an expedited refund for $2.7 million. He claimed the payment was made in error and wanted the funds returned as soon as possible. On September 20, 2007, he faxed a fraudulent claim to the TAS in the amount of $2.7 million, along with additional documents which appeared to be fraudulent, in order to substantiate his false claim.

Mr. King was arrested on November 16, 2007 in Los Angeles, CA and made his initial appearance the same day in federal court. The defendant is currently in custody.

The maximum statutory penalty for each count of making or presenting a false claim in violation of Title 18, U.S.C. § 287 is five years in prison and a $250,000 fine. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

An indictment contains only allegations against an individual and, as with all defendants, Mr. King must be presumed innocent unless and until proven guilty.

Thomas M. Newman is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kathy Tat. The prosecution is the result of an investigation by the Internal Revenue Service – Criminal Investigation.

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