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Stephen R Smith previously of Indiana Gun Club

Discussion in 'Shooting Related Threads' started by kaboom, Jan 14, 2012.

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  1. kaboom

    kaboom TS Member

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    Roachdale man gets two years in prison for manipulating cash transactions of $700,000


    Thursday, December 22, 2011
    Greencastle Banner-Graphic
    INDIANAPOLIS -- A 47-year-old Putnam County man has been sentenced to 24 months imprisonment following his guilty pleas to three counts of structuring monetary transactions, the Department of Justice has announced.

    Roachdale resident Stephen R. Smith was sentenced Wednesday by U.S. District Judge William T. Lawrence in the Southern District of Indiana.

    In August 2010, and again in March 2011, Smith was charged with structuring financial transactions in an indictment filed in the Southern District of Indiana.

    Specifically, Smith was charged with traveling to different banks or branches in different towns, generally on the same day, and using cash to purchase cashier's checks in an attempt to prevent the banks from recording and reporting the amount of currency he had.

    According to court documents, between 2005 and 2007, and then again in October 2011, Smith manipulated cash transactions involving just under $700,000, First Assistant U.S. Attorney Josh J. Minkler said.

    Federal law requires banks and other financial institutions to record receipt of cash between $3,000 and $10,000 and to report the transaction to the federal government.

    Federal law also requires banks and other financial institutions to prepare and file a Currency Transaction Report with the Internal Revenue Service (IRS) any time it receives more than $10,000 in cash in a single transaction. It is unlawful to manipulate transactions with intent to avoid these recording and reporting requirements.

    During his guilty plea and sentencing hearing, Smith admitted he had not filed federal tax returns or paid any federal income taxes since 1994.

    He also admitted that he manipulated his cash at various banks so that the federal government, particularly the IRS, would not know what income he earned.

    Smith earned income from his business, Frontier Inc., which first did business as Frontier Gun Club in Roachdale, and then operated as Indiana Gun Club in Fortville.

    Since being charged, Smith has filed his past federal tax returns, authorities said.

    In addition to the 24-month sentence, the court also imposed a $2,500 fine and ordered Smith to be under court supervision for two years following his release from prison. The court also ordered the forfeiture of $305,050 that was seized from Smith's residence in 2008 during the investigation.

    The case was prosecuted by Assistant U.S. Attorneys Doris L. Pryor and Sharon M. Jackson, and was investigated by the Internal Revenue Service.
     
  2. spritc

    spritc Active Member

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    It's a sad situation, no doubt. I know Veldon is still selling their remaining trap guns. etc. at great prices, legally. I wish them the very best with this sad news.

    Steve P.
     
  3. dead on 4

    dead on 4 Well-Known Member

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    Not good news........... Did a lot of deals with Steve, he was always fair with me. You just can't duck Big Brother for ever as he found.

    Surfer
     
  4. Leo

    Leo Well-Known Member

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    I know income tax evasion is illegal for a business so I understand those charges. It seems that there are two other troubling things.

    1) He liked cash. As someone who lost $270,000 of hard earned retirement savings I understand a man who does not trust banks. Apparently it is not illegal for a bank to steal the peoples money, but it is illegal not to trust banks to hold your money.

    2) they confiscated the mans money. It is not been proven in a court of law that there is anything wrong with his money or how he got it, yet the government just decided to take it. If he owes taxes on some of it, he should be required to pay the tax just like everyone else. The government should not just be able to take all the mans livelyhood just because they want it.
     
  5. B-Rod

    B-Rod Member

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    Never did care for Steve. Happy to see that you cannot cheat Unle Sam. Bottom line "pay your taxes".
     
  6. crusha

    crusha TS Member

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    I bet there have been people who killed somebody and didn't serve that much time.
     
  7. Chango2

    Chango2 Active Member

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    Waste of money to incarcerate such a "dangerous" criminal. Have him do public service...like consulting re. spotting crooks and roadside cleanup on the weekends.
     
  8. Bisi

    Bisi TS Member

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    2 years for "guilty pleas to three counts of structuring monetary transactions"? Is that a new term for tax evasion, or could that be a seperate charge?

    2 years for wanting to keep what is yours, but they do nothing to the people whom steal/defraud the government through disability claims, food stamps, etc...

    Michelle needs that money for her next vacation, so she can flush it down a hole. The government has no respect for money, look at the ways they waste it. When are they going to be charged with "structuring monetary transactions"? What was TARP - other than a structured monetary transaction? How about the GM, Chrysler bailout?. What about the billions in cash that were lost/misplace in Iraq?

    Leo, me too. I wish I had buried all my money or spent it instead of saving and investing it. A nice bank account is just a way to attract sue happy people and their dirty slimy lawyers. Been there done that. And if I ever make any more money I'm going to (after paying the tax on it) keep it in cash, so only I know where it is.
     
  9. Chango2

    Chango2 Active Member

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    Bisi: You are so right on. But don't keep cash, mice and insects and mold can "kill" cash. Gold and diamonds?
     
  10. BIGDON

    BIGDON Well-Known Member

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    Did you ever consider this was probably a plea bargin for more serious charges??

    He might be a lucky man.

    Don
     
  11. Bisi

    Bisi TS Member

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    BigDon, your right he could be a lucky man. If they wanted they probably could of hung em for more.

    Wonder how much time the Solyndra people will get for their half a billion dollar "structuring monetary transactions" rip off of the US Treasury. Oh that's right, keeping what is yours is wrong, but stealing from the taxpayers is the correct way of doing business.

    Sad situation.
     
  12. Mountainsteve

    Mountainsteve Member

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    Please change the thread name to Stephen R Smith. His name was not Steve Smith.
    Mountain Steve
     
  13. BAD 303

    BAD 303 Active Member

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    Thieves and crooks prosecuting someone for not paying taxes. Reallty ironic what this country has become. It is OK to not pay taxes if you are a Congressman. But not to be tolerated if you are an everyday citizen. His only mistake was not running for congress.
     
  14. BIGDON

    BIGDON Well-Known Member

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    bisi and bad 303 I would think it best because you don't know everthing to shut up. If you want a polictical rant then start your own thread.

    This thread should die now as the Smith's don't need to be the topic of discussion as they don't deserve it.

    Don
     
  15. Dickgshot

    Dickgshot Well-Known Member

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    A guy walks into your store and wants to buy a very expensive shotgun. He pulls out of wad of bills -$20,000 to pay for it. It was money he had hidden in
    his mattress that the IRS never knew about because he never paid tax on it.

    What do you do? You need the money to pay your bills. So, you're the one who
    has to find a way to get it into your bank account. That's the essence of
    money laundering, and that's what the requirement for the Currency Transaction
    Report was intended to prevent. There was nothing illegal about taking the cash. At that point, it was the guy who bought the gun who would have been in trouble.

    I was an Internal Revenue Agent for six years before I went into private practice. I have defended hundreds of taxpayers in similar situations.
    Ironically, I was at the Indiana Gun Club many times, and did business with
    Steve, and we talked many times. I never had a clue about the situation he was
    in.

    Big Don is correct. The 24 month sentence was part of a plea arrangement - it was a lot lighter sentence than he could have gotten. There was no mention
    of charges for the tax evasion aspect. I'm sure what saved him from a longer
    sentence was fully co-operating with the IRS and filing the back tax returns.

    Unfortunately, I don't think the $ 300,000 + forfeiture will be applied against
    the tax he must owe, but I don't have enough information and I may be wrong.
    The tax will not be dischargeable in a future bankruptcy, but it most likely
    will not be extended beyond the ten year statute of limitations.

    Steve had a great reputation for being fair, and he was pretty much running things after his father had a heart attack.

    It's really sad.
     
  16. crusha

    crusha TS Member

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    While we're on the subject...will there still be shooting at Indiana Gun Club, if/when the ITA homegrounds moves to CERAland Park in Columbus?
     
  17. BAD 303

    BAD 303 Active Member

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    BIGDON No where did i say the first thing against Steve. And second like you know the entire story. None of us do and probably never will. My only point was that Steve like many average citizens are made examples of while our outstanding Government elected officials get a slap on the wrist. I too have dealt with Steve and never had the first bad encounter.
     
  18. blade819

    blade819 Well-Known Member

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    dickgtax.... I don't understand your example. If a guy wants to pay $20k cash for a gun in a lincensed store, the owner makes the sale, records it in his monthly gross, paus his monthly sales tax and yearly income tax on the net and then deposits the money in his bank account. Easy! It's when the store owner doesn't record the sale, takes the cash and tries to disguise it by putting it somewhere else.

    blade819
     
  19. hoosier

    hoosier TS Member

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    Buzz, The answer to your question is, yes. Hoosier
     
  20. Dickgshot

    Dickgshot Well-Known Member

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    Blade819:

    When the businessman makes a deposit of over $10,000 in currency, he is
    required to file a form 8300 with the IRS. On that form you have to identify the source of the cash - which in my example would be the purchaser of the
    gun. If you attempt to break the transaction into separate deposits less than
    $10,000 to avoid the reporting requirement -which he did- that is a violation
    of the law.

    My guess is that there were customers who wouldn't have dealt with Steve without his assurance that he wouldn't file that form and identify them.
    I'm only speculating that maybe this wasn't a pure case of him trying to avoid paying tax, because even though he hadn't filed tax returns since 1994, the
    government chose not to pursue the tax evasion aspect of the case.
     
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