0326 Publ 3583 (PDF)

Official source: IRS Forms, Instructions & Publications (https://www.irs.gov/pub/irs-pdf/p3583.pdf), retrieved 2026-10-03. U.S. Government work (17 U.S.C. § 105).

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02 Message from the Chief

03 2025 Snapshot

04 IRS-CI’s FY25 Global Impact

08 Significant Cases

08 TD Bank Investigation Newark Field Office

08 Global Export Control and Sanctions Evasion Scheme New York Field Office

09 Bitfinex Hack Washington, D.C. Field Office

09 North Korean Information Technology Scheme Phoenix Field Office

10 Par Funding Philadelphia Field Office

10 Bitwise Industries Oakland Field Office

11 Feeding Our Future Fraud Scheme Chicago Field Office

11 Credit Suisse Services AG International Tax & Financial Crimes Group (Washington, D.C.)

12 Multi-State Drug Trafficking and Money Laundering Tampa Field Office

12 COVID-19 Pandemic Fraud Scheme Los Angeles Field Office

13 Syndicated Conservation Easements Charlotte Field Office

14 Field Office Map

16 Appendix

20 IRS-CI Organization Chart NAVIGATION MENU

Table of Contents • 2025 Snapshot • Field Office Map • Appendix

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IRS-CI ANNUAL REPORT 2025

Each fiscal year, this report highlights not only our most significant cases and the resulting statistics, but also the dedication, sacrifice and professionalism of the IRS Criminal Investigation (IRS-CI) workforce. Our special agents and professional staff continue to demonstrate resilience, integrity and innovation as financial crimes grow more complex and demanding. None of our achievements as an agency would be possible without the people who work here at IRS-CI, and I am deeply grateful for their commitment to our mission.

In fiscal year 2025 (FY25), IRS-CI held some of the most egregious tax criminals accountable, dismantled schemes that targeted the vulnerable and defrauded government programs, applied its financial expertise to disrupt drug traffickers, and safeguarded our nation’s national security by investigating sanctions evasion and illegal hiring schemes. Advanced data analytics, digital tools, and intelligence-sharing have become more integral than ever in uncovering patterns and anomalies indicative of criminal activity. As criminals become more sophisticated, our investigative techniques continue to evolve to keep pace.

Collaboration has been a cornerstone of our success. Initiatives such as CI-FIRST (Feedback in Response to Strategic Threats) strengthened our partnerships with financial institutions, enhancing communication and modernizing legal processes. This partnership redefines how we detect, disrupt and dismantle criminal networks. Internationally, our work with the Joint Chiefs of Global Tax Enforcement (J5) yielded tangible results, including cross-border investigations and intelligence-sharing that led to successful prosecutions. Through the J5, we published a series of reports highlighting fraud trends and typologies and saw our intelligence-sharing result in the guilty plea of a government contractor for evading millions of dollars in U.S. taxes and the conviction of the head of a cryptocurrency investment scheme for

defrauding investors of millions. Domestically, our partnerships through the newly established Homeland Security Task Forces have reinforced our ability to support whole-of-government efforts that protect our communities and uphold the rule of law.

Starting in August, our special agents and professional staff began supporting Operation Safe and Beautiful in Washington, D.C., and in September, we began assisting the Restoring Law and Order in Memphis taskforce. These efforts bring together special agents from across the country to support local and federal law enforcement initiatives. While such missions extend beyond traditional tax enforcement, they demonstrate the adaptability of our agents and the broad value we bring to interagency efforts. These initiatives, though resource-intensive, underscore the trust placed in IRS-CI to deliver results wherever financial crimes intersect with broader national priorities.

As we look forward, IRS-CI remains focused on combating threats to our tax and financial systems and protecting U.S. taxpayers. Our mission has not wavered, and I am confident that our team will continue to deliver results

and meet the challenges of tomorrow.

Sincerely,

Guy Ficco Chief, IRS Criminal Investigation

*Staffing levels are reported by fiscal year and reflect an actual count of employees based on employee master database as of PP19,

and are adjusted for DRP/VERA separations.

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trafficking. IRS-CI is a critical partner in this effort, and roughly 190 of our special agents sit on these taskforces across the country.

In FY25, IRS-CI special agents spent approximately 23.7% of their time investigating non-tax violations, initiated 1,412 cases, and referred 1,209 individuals for prosecution to the Department of Justice for non-tax violations.

In April 2025, Behrouz Parsarad, an Iranian national, was charged for his role in operating a dark web marketplace that served as a hub for illegal drugs and criminal cyber services, including stolen financial information, fraudulent identification documents, counterfeit currencies, and computer malware. According to the indictment, Parsarad launched Nemesis Market in March 2021. At its peak, the marketplace had over 150,000 users worldwide. Parsarad was charged with conspiracy to traffic drugs and money laundering conspiracy. In March 2025, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions against Parsarad for his role as the administrator of Nemesis Market. According to OFAC, Nemesis Market facilitated the sale of nearly $30 million worth of drugs between 2021 and 2024.

IRS Criminal Investigation (IRS-CI), the law enforcement arm of the IRS, is the only federal agency with the authority to investigate potential criminal violations of the Internal Revenue Code. While the enforcement of U.S. tax laws remains our core priority, IRS-CI plays a critical role in satisfying broader national law enforcement priorities, including protecting national security and combating narcotics trafficking, terrorist financing, sanction violations, and cybercrimes. As a result of IRS-CI investigations, criminals may receive prison sentences for threatening America’s financial and physical wellbeing. IRS-CI’s enforcement efforts deter financial crimes by reinforcing trust in the U.S. financial system and strengthening the economy.

Founded in 1919 as the Intelligence Unit of the Department of Revenue, led by Chief Elmer Irey, the agency began with just six special agents. Today, IRS-CI consists of roughly 2,000 special agents who are sworn federal law enforcement officers that investigate the most complex criminal

tax cases and a myriad of financial crimes. IRS-CI special agents are located in all 50 states, as well as Guam, Puerto Rico, and the Virgin Islands. IRS-CI also maintains 14 attaché posts abroad with a staff of approximately 30 attachés, deputy attachés, and investigative support staff.

IRS-CI also employs more than 1,000 professional staff who provide essential expertise and support to the agency’s mission. These professionals analyze intelligence, conduct research, manage operations and deliver scientific and digital forensic analyses. Together, our special agents and professional staff continue to safeguard the integrity of our nation’s tax and financial system.

In FY25, IRS-CI identified almost $4.5 billion in tax fraud and over $6 billion in fraud linked to other financial crimes. We referred 2,043 cases for prosecution, saw 1,611 convictions, and had a conviction rate of 89%, one of the highest in federal law enforcement.

While FY25 was a year that required our professionals across the agency to adapt to shifting priorities, we saw a significant increase in the amount of tax fraud identified — more than double the amount uncovered in FY24. Additionally, there was a 25% increase in the number of warrants executed throughout the year, along with an almost 14% rise in cases referred for prosecution. These accomplishments reflect our unwavering dedication to the mission of protecting the integrity of the tax system and ensuring fairness for all taxpayers.

Expanding Federal Law Enforcement Partnerships

In FY25, IRS Criminal Investigation strengthened and expanded its federal law enforcement partnerships to address emerging national threats. Through newly established Homeland Security Task Forces, support to U.S. Immigration and Customs

Enforcement for immigration enforcement, and participation in Operation Safe and Beautiful in Washington, D.C., and Restoring Law and Order in Memphis, IRS-CI deployed special agents nationwide to assist in combating violent crime, transnational organizations, and financial exploitation. These collaborations showcase the adaptability and expertise of IRS-CI’s workforce in applying financial intelligence to complex, multi-agency operations. While extending beyond traditional tax enforcement, these efforts reinforce IRS-CI’s vital role in protecting the nation’s financial and public safety interests.

Narcotics and National Security

IRS-CI is well-known for solving some of the most complex financial crimes in our country. In 1931, the investigation of Alfonse “Al” Capone led to his indictment on federal income tax evasion. He was sentenced to 11 years in prison and ordered to pay a $50,000 fine and restitution of $215,000.

Since then, IRS-CI has continued to play a crucial role in making the United States safer. Our agents identify transnational criminal organizations by targeting associated money trails, often linking the criminal organizations to crimes like narcotics trafficking, terrorist financing, illegal firearms distribution, and other fraud.

In FY25, and in accordance with the Executive Order Protecting the American People Against Invasion, the National Security Council directed the creation of Homeland Security Task Forces (HSTF). Co-led by Homeland Security Investigations and the FBI, HSTFs target criminal cartels, foreign gangs, and transnational criminal organizations throughout the United States. They investigate drug trafficking, money laundering, weapons trafficking, human trafficking, alien smuggling, homicide, extortion, kidnapping, and weapons

INVESTIGATIONS INITIATED

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Our efforts to combat terrorism and protect our national security also resulted in Christina Chapman, an Arizona woman, being sentenced to 8½ years in prison. She helped Information Technology (IT) workers located in North Korea steal the identities of U.S. nationals so they could apply for remote IT jobs and transmit false documents to the Department of Homeland Security. The scheme generated more than $17 million in illicit revenue for Chapman and North Korea. IRS-CI also participated in the investigation of Quanzhong An, who was an illegal agent for the People’s Republic of China and led a harassment campaign against a U.S. resident and his family in an attempt to coerce the U.S. resident to return to China.

IRS-CI often plays a critical role in combatting drug trafficking due to our ability to trace financial records. In FY25, our team secured 447 convictions related to narcotics violations. In December 2024, Haiping Pan, a Chinese national, was sentenced to a decade in prison for laundering $62 million in illegal drug proceeds on behalf of traffickers in Mexico. IRS-CI assisted in an investigation where 11 defendants were sentenced to a combined 123 years in prison for operating a cartel-linked drug trafficking ring that smuggled nearly 400 pounds of methamphetamine and over 7 kilograms of fentanyl into the Midwest. IRS-CI’s Detroit Field Office also assisted in a case where the judge, at sentencing, referred to the defendant, Jason Demyers, as a “kingpin” and sentenced him to 27 years in prison for his leadership of the multistate drug trafficking conspiracy.

National Law Enforcement Priorities

In May 2025, IRS-CI started providing support to U.S. Immigration and Customs Enforcement (ICE) with immigration enforcement efforts. IRS-CI dedicated special agents to assist ICE in facilitating arrest, detention, and deportation efforts, focusing

on identifying transnational gang members and affiliates and locating children separated from their families after illegally entering the U.S.

As the only federal law enforcement agency with jurisdiction over income tax violations, IRS-CI is committed to investigating tax crimes related to fraudulent refund claims, legal and illegal income source tax evasion,

and emerging trends in financial exploitation including employment tax violations. Our investigative priorities include rooting out fraud in government contracts, combating false claims to the IRS, and targeting schemes that prey on vulnerable individuals and compromise their financial security. Our Advanced Analytics and Innovation team continues to stay at the forefront of identifying new schemes and uncovering the methodology these criminals use to defraud their victims. We use the latest technology to refine our investigative approach to improve scheme detection and improve the efficiency of our data analytics and investigations.

One area where these investigative priorities and data-driven strategies have proven especially effective is in addressing employment tax fraud and payroll schemes that exploit vulnerable workers and undermine the tax system. Employers are required to deduct employment taxes from employees’ wages and pay a portion of these taxes to the U.S. government. IRS-CI investigates large-scale payroll and worksite fraud schemes nationwide. A lot of these cases involve labor intensive industries, such as construction, agriculture, and hospitality. In certain instances, staffing companies or “labor brokers” pay workers off the books to evade taxes and hide unauthorized employment.

Manuel Domingos Pita, a Florida businessman, was sentenced to 48 months in prison and ordered to pay $55 million in restitution for employing migrant laborers illegally, evading payroll taxes, and causing a worker’s death. In Oregon, David Katz was sentenced to four years in prison and ordered to repay nearly $45 million for a $177 million payroll tax evasion scheme. Katz conspired with others in the construction industry to facilitate “under-the-table” payments to construction workers. Four Honduran nationals were indicted in Florida for running an

off-the-books payroll operation, and the owners of several Florida labor-staffing companies were sentenced for tax fraud, immigration violations, and laundering illicit proceeds.

IRS-CI continues to prioritize cybercrime investigations, recognizing that modern financial crimes increasingly rely on the internet, computer networks, and digital communication to expand their reach and complexity. These cases are often among the agency’s largest, often resulting in lengthy prison terms, significant forfeitures, and seizures. In FY25 alone, IRS-CI saw 54 convictions in cyber-related investigations with an average sentencing of 63 months incarceration. In FY25, Oluwole Adegboruwa was sentenced to 30 years in prison for operating a multimillion-dollar dark web operation that distributed more than 300,000 oxycodone pills and laundered nearly $9.1 million in proceeds. Roman Sterlingov, a dual Russian-Swedish national, earned himself a 12½ year prison sentence for operating the darknet cryptocurrency mixer Bitcoin Fog . And Ilya Lichtenstein, who orchestrated a massive hack of the cryptocurrency exchange Bitfinex and then laundered nearly 120,000 stolen bitcoin, was sentenced to five years in prison. To meet the global nature of these crimes, IRS-CI used advanced analytics to identify data trends and staffing resources, including cybercrime units in Los Angeles and Washington, D.C., specialized attachés assigned to international posts, and partnerships around the world.

In March 2025, IRS-CI announced CI-FIRST (Feedback In Response to Strategic Threats), the agency’s flagship initiative to modernize the way IRS-CI works with financial institutions. CI-FIRST addresses challenges in Bank Secrecy Act reporting by providing feedback to help banks understand what is most useful to investigators, while enhancing the speed and precision with which agents can identify, disrupt, and prosecute financial crime. The Optimizing Financial Records Requests (OFRR) initiative streamlines and standardizes how law enforcement agencies request and how financial institutions respond to legal order and subpoena requests.

IRS-CI hosted more than a dozen global financial institutions at its first executive forum in Washington, D.C. in August 2025, and hundreds of financial industry, regulatory agency, and law enforcement representatives attended regional forums in Tampa, Florida, and Los Angeles, California, in September 2025.

IRS-CI prioritizes financial fraud schemes targeting U.S. citizens and government programs. In FY25 we identified over $10.6 billion in financial fraud including tax and non-tax offenses. We continue to see lengthy prison sentences for fraud in connection with the COVID-19 pandemic. In a landmark sentence, Shafii Farah, one of the masterminds behind a COVID-19 fraud scheme, was sentenced to 28 years in prison for defrauding American taxpayers of over $250 million. Thus far, 73 defendants have been indicted for their participation in this scheme. From the start of the pandemic through 9/30/25, IRS-CI initiated 588 investigations involving more than $5.6 billion of potentially fraudulent ERCs related to tax years 2020, 2021, 2022, 2023, and 2024. Of these investigations, 108 have resulted in federal charges to date.

This year, our financial fraud investigations revealed recurring themes of long-running deception, abuse of trust, and massive financial harm to communities. Our investigators uncovered a $24.5 million Ponzi scheme, sweeping identity-theft frauds, and secured the conviction of former speaker of the Illinois House of Representatives, Michael Madigan, who was sentenced to seven years for using his official position for personal benefit. Whether siphoning government benefits, exploiting community ties, or misusing political power, each case underscores how fraud erodes confidence in institutions, communities, and public programs, reinforcing why IRS-CI remains central to protecting the integrity of the financial system.

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TD Bank Investigation

Newark Field Office

For almost a decade, TD Bank NA and its parent company, TD Bank US Holding Company, the 10th largest bank in the United States, had long-term, pervasive, and systemic deficiencies in its U.S. anti-money laundering (AML) policies, procedures, and controls but failed to take appropriate remedial action. Instead, senior executives at TD Bank enforced a budget mandate, referred to internally as a “flat cost paradigm,” requiring that TD Bank’s budget not increase year-over-year, despite its profits and risk profile increasing significantly over the same period. Although TD Bank maintained elements of an AML program that appeared adequate on paper, fundamental, widespread flaws in its AML program made TD Bank an “easy target” for perpetrators of financial crime.

TD Bank’s federal regulators and their own internal audit staff repeatedly identified concerns about its transaction monitoring program, a key element of an effective AML program, which is necessary to detect and report suspicious activities and financial transactions. TD Bank intentionally did not automatically monitor all domestic automated clearinghouse transactions (ACH), most check activity, and numerous other transaction types, resulting in 92% of their total transaction volume going unmonitored from January 2018 through April 2024. This amounted to approximately $18.3 trillion of unmonitored transaction activity.

Employees of TD Bank described the institution as a “convenient” target for criminals, which allowed hundreds of millions of dollars to pass through the bank. The investigation revealed at least three distinct money laundering networks that collectively transferred more than $670 million through TD Bank accounts between 2019 and 2023. The Justice Department has charged over two dozen individuals across these schemes, including two bank insiders. TD Bank’s plea agreement requires continued cooperation in ongoing investigations of individuals. In November 2024, TD Bank was ordered to forfeit over $452 million and to pay a criminal fine of $1.4 billion.

Global Export Control and Sanctions Evasion Scheme

New York Field Office

From 2019 through 2022, Vadim Yermolenko, a dual U.S. and Russian national residing in New Jersey, played a key role in a transnational procurement and money laundering network that illegally acquired U.S.-made dual-use electronics and military-grade ammunition intended for Russian military and intelligence entities.

Yermolenko was affiliated with Serniya Engineering (Serniya) and Sertal LLC (Sertal), two Moscow-based procurement companies that operated a network of shell companies and bank accounts throughout the world, including in the United States. These companies concealed involvement of the Russian government and end-users of highly sensitive electronic components, some which are used in the development of nuclear weapons or other military applications. Serniya, Sertal, and several individuals and companies involved in the scheme were placed on the Office of Foreign Assets Control’s (OFAC) Specially Designated Nationals List in February 2022, which allows the U.S. to place sanctions on these entities.

Yermolenko helped set up shell companies and U.S. bank accounts to conceal the Russian government’s involvement, funneling over $12 million through accounts he controlled. Yermolenko failed to report the funds to the IRS. These funds were used in part to purchase sensitive radar equipment for surveillance, military research, and development. Yermolenko pleaded guilty to conspiracy to violate the Export Control Reform Act, bank fraud conspiracy, and conspiracy to defraud the United States. He was sentenced to 30 months in prison and ordered to pay a forfeiture money judgment of $75,547.

Bitfinex Hack

Washington, D.C. Field Office

In 2016, Ilya Lichtenstein hacked into Bitfinex, a global cryptocurrency exchange, using advanced hacking tools and techniques. Once inside the network, Lichtenstein fraudulently authorized more than 2,000 transactions transferring 119,754 bitcoin from Bitfinex to a cryptocurrency wallet in his control. Lichtenstein then took steps to cover his tracks by deleting access credentials and other log files from Bitfinex’s network that could have revealed his conduct to law enforcement. Following the hack, Lichtenstein enlisted the help of his wife, Heather Morgan, in laundering the stolen funds. At the time of the hack, the bitcoin was valued at $71 million.

Lichtenstein, at times with Morgan’s assistance, employed numerous sophisticated laundering techniques that ranged from using fictitious identities to set up online accounts to utilizing computer programs to automate transactions to converting bitcoin to other forms of cryptocurrency in a practice known as chain hopping. He then used U.S.-based business accounts to legitimize his and Morgan’s banking activity and exchanged a portion of the stolen funds for gold coins.

Lichtenstein and Morgan both pleaded guilty. Lichtenstein was sentenced to five years in prison, and Morgan was sentenced to 18 months. Several billion dollars of illicit proceeds have also been recovered through seizure and forfeiture due to the appreciation of the stolen funds.

CONVICTIONS

North Korean Information Technology Scheme

Phoenix Field Office

From 2020 through 2023, Christina Chapman conspired with and assisted North Korean IT workers in a scheme that generated more than $17 million in illicit revenue for herself and North Korea. Using stolen and purchased identities of U.S. nationals, North Korean workers applied for remote IT jobs at over 300 U.S. companies, including Fortune 500 corporations, major television networks, American car makers, and tech companies.

Chapman operated a “laptop farm,” where she received and hosted computers from U.S. companies at her home, leading the companies to believe these workers were in the United States. Chapman also shipped 49 laptops and other devices supplied by U.S. companies to locations overseas, including multiple shipments to a city in China near North Korea.

Much of the $17.1 million was falsely reported as wages to the IRS and Social Security Administration in the names of U.S. individuals whose identities had been stolen or borrowed. Chapman pleaded guilty to conspiracy to commit wire fraud, aggravated identity theft, and conspiracy to launder monetary instruments. She was sentenced to 102 months in prison and ordered to forfeit $284,555.92 that she planned to pay to the North Koreans and pay a judgement of $176,850.

AVERAGE SENTENCING

$149M

ASSETS SEIZED

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Par Funding

Philadelphia Field Office

For almost a decade, Joseph LaForte, CEO of Complete Business Solutions Group Inc., dba Par Funding (“Par Funding”), orchestrated a large-scale fraud totaling approximately $404 million. LaForte marketed Par Funding as a high-yield lending opportunity, when it actually operated as a criminal enterprise. As the undisputed leader of the enterprise, he misled investors about the company’s financial performance, concealed his prior felony convictions, and directed aggressive and sometimes violent collection tactics against borrowers.

LaForte and his co-conspirators, one of which was his brother, James LaForte, defrauded investors by providing false or misleading information about the company’s performance, insurance coverage, and other important facts. Par Funding’s principal means of generating income was to advance money to businesses (known as merchant cash advance or MCA customers) that needed short-term financing at high rates of return. They then engaged in threats of violence and extortion to collect overdue payments. Additionally, they lied about the financial position of the company.

Joseph LaForte caused Par Funding to pay him and his wife more than $120 million in fraudulent proceeds, which he used to purchase homes, vacation properties, vehicles, artwork, jewelry, dozens of investment properties, a boat, and a private jet. He committed a variety of tax crimes related to these fraudulent proceeds, including conspiracy to defraud the IRS and filing false income tax and employment tax returns. His tax crimes resulted in more than $8 million in losses to the IRS and $1.6 million in losses to the Pennsylvania Department of Revenue.

LaForte was convicted in numerous federal and state charges including RICO conspiracy, securities fraud, tax fraud, and obstruction of justice. He was sentenced to 186 months in prison and three years of supervised release, including one year of house arrest. LaForte was also ordered to pay restitution of $314 million and a $120 million money forfeiture judgment, and he was ordered to forfeit various assets, including a private jet and an investment account totaling approximately $20 million.

Bitwise Industries

Oakland Field Office

From 2022 through May of 2023, founders Jake Soberal and Irma Olguin Jr. engaged in a scheme to defraud investors of their company, Bitwise Industries. At the time, Bitwise was the largest startup company from California’s Central Valley. The company’s objective was to use technology to create jobs for underserved groups of people and to revitalize blighted urban areas, all while demonstrating profitability to investors. However, Soberal and Olguin fabricated investor materials, falsified audit reports, altered bank statements, and forged documents to portray Bitwise as profitable, when the company actually had minimal revenue and was running out of funds.

In a February 2022 presentation and a July 2022 prospectus, Olguin and Soberal represented to investors that Bitwise’s cash balance was over $44 million, and their revenue was more than $58 million, when Bitwise had less than $12 million in cash, and the company’s revenue was non-existent. They made similar representations in March 2023, when they overstated their cash balance by $72 million and claimed $143 million in revenues, while they were negligible.

Their deception caused nearly 1,000 employees and contractors to abruptly lose their jobs when the company collapsed in May 2023. Their actions had widespread economic and personal fallout, prompting serious sentencing enhancements due to their abuse of trust, professional status, and calculated efforts to conceal the fraud. Soberal and Olguin were convicted for conspiracy to commit wire fraud and wire fraud, sentenced to 11 and 9 years in prison, respectively, and were ordered to pay restitution to victims of over $114 million.

Feeding Our Future Fraud Scheme

Chicago Field Office

From April 2020 to January 2022, Abdiaziz Shafii Farah, a Minnesota businessman, played a leading role in a COVID-19 fraud scheme totaling over $300 million, one of the largest ever. Farah used his company, Empire Cuisine & Market, to enroll in the federal Child Nutrition Program (CHIP) during the COVID-19 pandemic, and he created over 30 sham distribution sites. Farah submitted falsified rosters and invoices to claim over 18 million meals for underprivileged children that were never served.

He ran a “pay-to-play” kickback system, bribing program employees to approve and sustain the scheme. He used the proceeds of this scheme to purchase luxury real estate, vehicles, jewelry, and overseas investments. He personally pocketed over $8 million from the scheme. Farah was convicted of conspiracy charges, false statements, briberyrelated charges, and 11 counts of money laundering. He was sentenced to 28 years in prison followed by three years of supervised release, and he was ordered to pay restitution of $47.92 million.

At least 75 individuals have been charged in connection with this scheme. Mukhtar Mohamed Shariff, CEO of Afrique Hospitality Group, engaged in similar conduct and was sentenced to 210 months in prison followed by three years of supervised release. He was also ordered to pay almost $50 million in restitution. Sharon Denise Ross was sentenced to 43 months in prison and ordered to pay $2.4 million in restitution for claiming to have served thousands of children each day at the House of Refuge Twin Cities, a St. Paul based non-profit.

Credit Suisse Services AG

International Tax & Financial Crimes Group (Washington, D.C.)

Credit Suisse Services AG, (Credit Suisse) pleaded guilty for conspiring to help U.S. taxpayers hide more than $4 billion in at least 475 offshore accounts from the IRS. Between January 2010 and July 2021, Credit Suisse, who served high-net-worth clients globally, colluded with U.S. clients and employees to conceal asset ownership and income held at the bank. This enabled clients to evade U.S. tax obligations by opening undeclared offshore accounts, using private banking services to obscure assets from the IRS, and failing to file required Reports of Foreign Bank and Financial Accounts (FBARs). Bankers knowingly falsified records—including fictitious donation paperwork— and managed over $1 billion in undocumented accounts. This misconduct was in violation of a May 2014 plea agreement with the United States.

Credit Suisse also entered into a non-prosecution agreement (NPA) concerning its Singapore operations, where from 2014 to June 2023, it maintained undeclared U.S.-related accounts with assets exceeding $2 billion and failed to identify U.S. indicia or the true beneficial owners. The bank agreed to cooperate fully with DOJ investigations and committed to paying substantial monetary penalties.

As part of the resolution, the bank agreed to pay approximately $510.6 million in total penalties, restitution, forfeiture, and fines. UBS—Credit Suisse’s parent since its 2023 acquisition—is required under the agreement to fully cooperate with ongoing investigations and disclose information regarding U.S.-related accounts.

$99M

ASSET RECOVERY

• Value at time of seizure

FORFEITURES

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Multi-State Drug Trafficking and Money Laundering

Tampa Field Office

From 2017 through 2023, a violent drug trafficking organization led by Dudzinski Edwinn Poole, known as “Zink,” distributed massive quantities of methamphetamine and fentanyl across multiple states, including Florida, Georgia, and Ohio. The organization relied on a network of couriers, stash houses, and mailed packages to move narcotics. They then laundered their proceeds, including through an entertainment business that disguised illicit revenue as legitimate income. The investigation uncovered a wide-reaching conspiracy involving suppliers, distributors, couriers, and financial operatives who played roles in sustaining the drug pipeline and concealing profits.

Investigators seized more than 250 pounds of methamphetamine and fentanyl, along with firearms, vehicles, jewelry, and residences purchased with the drug proceeds. Leaders used commercial flights and the mail to transport drugs, while laundering millions of dollars through shell operations and cash couriers. Evidence revealed that members of the organization used violence, threats, and intimidation to maintain control of their operation and profits.

Seventeen defendants were convicted, either through guilty pleas or jury trials. Sentences varied depending on the defendant’s role: Michael Chester was sentenced to life in prison, reflecting his leadership in the conspiracy, while Poole received 21 years and 10 months. Several others received terms ranging from six years to more than 30 years. The wide range of sentences highlights the differing levels of responsibility within the organization, from masterminds and major distributors to couriers and facilitators.

COVID-19 Pandemic Fraud Scheme

Los Angeles Field Office

From June 2020 through December 2021, Casie Hynes engaged in a wide-ranging fraud scheme exploiting COVID-19 relief programs and pandemic tax credits. Hynes submitted over 80 fraudulent loan applications through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program, seeking more than $3.1 million in relief funds. She fabricated the number of employees, payroll amounts, and supporting tax and bank records, and she used the personal information and signatures of others without authorization. Through this scheme, she successfully obtained approximately $2.25 million in fraudulent loan proceeds.

In addition, between May 2021 and April 2022, Hynes submitted a dozen fraudulent tax filings claiming nearly $1.3 million in pandemic-related tax credits, including the Employee Retention Credit and Paid Sick and Family Leave Credits. These filings were submitted on behalf of companies she controlled, such as Nasty Womxn Project LLC, She Suite Ventures, and Casie Hynes Consulting, and were based on fictitious wages and employees. Although those tax credit claims were denied, the attempt underscored her use of multiple pandemic relief programs to maximize illicit gain.

Hynes was convicted of wire fraud and presenting false claims to the United States. She was sentenced to 60 months in prison and ordered to pay more than $2.37 million in restitution.

Syndicated Conservation Easements

Charlotte Field Office

IRS-CI continues to investigate individuals associated with an abusive tax scheme tied to syndicated conservation easement transactions. From 2014 through at least 2019, Victor Smith, CPA, a founding partner of an Atlanta-based accounting firm, promoted and sold tax deductions to his wealthy clients in illegal syndicated conservation easement tax shelters, which were organized and created by co-defendants Jack Fisher, James Sinnott, and others. Smith and his firm sold approximately $14 million in false tax deductions to their clients, causing a tax loss to the IRS of about $4.8 million. Smith earned $491,400 in commissions.

William Tomasello, a CPA at another accounting firm, also promoted and sold units to his wealthy clients causing a tax loss of about $2.3 million. He earned approximately $525,072 in commissions.

Smith and Tomasello both knew that, contrary to law, these tax shelters lacked economic substance and that their wealthy clients participated in these sham investments only to obtain a tax deduction. For example, a client who purchased units in a partnership had to vote ostensibly on what to do with the partnership’s land. However, Smith and Tomasello knew that the vote held by the partnerships each year was just for optics, and the land invariably would be donated largely as a conservation easement. Smith and Tomasello also knowingly instructed and caused their clients to falsely backdate documents like subscription agreements and checks related to the illegal tax shelters. In October 2024, they were each sentenced to 20 months in prison for their role in the scheme.

Syndicated Conservation Easements

In FY25, eight defendants were convicted of criminal conduct related to this scheme, which was orchestrated by Fisher and Sinnott. Fisher and Sinnott were convicted after trial and sentenced in 2024. Other defendants include appraiser Walter Douglas “Terry” Roberts, Ralph Anderson, and Vui Bui, an attorney and partner at Sinnott & Co. Bui was sentenced to 16 months in prison for his role in this scheme.

Charlotte Field Office

IRS-CI continues to investigate individuals associated with an abusive tax scheme tied to syndicated conservation easement transactions. From 2014 through at least 2019, Victor Smith, CPA, a founding partner of an Atlanta-based accounting firm, promoted and sold tax deductions to his wealthy clients in illegal syndicated conservation easement tax shelters, which were organized and created by co-defendants Jack Fisher, James Sinnott, and others. Smith and his firm sold approximately $14 million in false tax deductions to their clients, causing a tax loss to the IRS of about $4.8 million. Smith earned $491,400 in commissions.

William Tomasello, a CPA at another accounting firm, also promoted and sold units to his wealthy clients causing a tax loss of about $2.3 million. He earned approximately $525,072 in commissions.

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This appendix includes investigation data appearing in the annual report as well as extended information regarding incarceration rates.

Financial Institution Fraud

2025 2024 2023

Investigations Initiated 52 32 28

Prosecution Recommendations 29 21 25

Informations/ Indictments 28 27 20

Sentenced 21 30 16

Incarceration Rate 76% 47% 81%

Average Months to Serve 40 18 45

Healthcare Fraud

2025 2024 2023

Investigations Initiated 64 60 44

Prosecution Recommendations 33 36 36

Informations/ Indictments 34 34 32

Sentenced 59 58 56

Incarceration Rate 58% 62% 80%

Average Months to Serve 23 25 39

FY Combined Results

2025 2024 2023

Investigations Initiated 2792 2667 2676

Prosecution Recommendations 2043 1794 1838

Informations/ Indictments 1726 1669 1676

Sentenced 1613 1582 1479

Incarceration Rate 76% 76% 79%

Average Months to Serve 49 44 48

Abusive Return Preparer Program

2025 2024 2023

Investigations Initiated 206 190 201

Prosecution Recommendations 169 91 108

Informations/ Indictments 92 83 92

Sentenced 83 84 134

Incarceration Rate 77% 80% 72%

Average Months to Serve 27 20 23

Abusive Tax Schemes

2025 2024 2023

Investigations Initiated 34 92 103

Prosecution Recommendations 17 55 36

Informations/ Indictments 18 37 40

Sentenced 30 36 26

Incarceration Rate 77% 83% 77%

Average Months to Serve 24 47 36

Bank Secrecy Act (BSA)

2025 2024 2023

Investigations Initiated 541 542 511

Prosecution Recommendations 357 381 350

Informations/ Indictments 310 347 319

Sentenced 323 316 235

Incarceration Rate 81% 73% 77%

Average Months to Serve 34 29 32

Corporate Fraud

2025 2024 2023

Investigations Initiated 37 23 34

Prosecution Recommendations 19 16 31

Informations/ Indictments 23 14 26

Sentenced 26 22 19

Incarceration Rate 50% 77% 79%

Average Months to Serve 25 44 22

Employment Tax

2025 2024 2023

Investigations Initiated 205 209 221

Prosecution Recommendations 142 113 115

Informations/ Indictments 96 106 128

Sentenced 121 104 103

Incarceration Rate 82% 72% 84%

Average Months to Serve 22 17 20

IRS-CI ANNUAL REPORT 2025

(2/2)

This appendix includes investigation data appearing in the annual report as well as extended information regarding incarceration rates.

Questionable Refund Program

2025 2024 2023

Investigations Initiated 127 109 93

Prosecution Recommendations 80 43 39

Informations/ Indictments 69 18 40

Sentenced 40 57 65

Incarceration Rate 78% 84% 72%

Average Months to Serve 32 52 42

Terrorism

2025 2024 2023

Investigations Initiated 15 21 14

Prosecution Recommendations 8 15 12

Informations/ Indictments 9 15 12

Sentenced 10 28 9

Incarceration Rate 80% 57% 67%

Average Months to Serve 43 17 127

Identity Theft

2025 2024 2023

Investigations Initiated 161 106 137

Prosecution Recommendations 116 74 96

Informations/ Indictments 118 67 98

Sentenced 76 87 81

Incarceration Rate 87% 89% 80%

Average Months to Serve 63 58 50

International Operations

2025 2024 2023

Investigations Initiated 142 174 147

Prosecution Recommendations 123 139 128

Informations/ Indictments 132 152 117

Sentenced 148 149 128

Incarceration Rate 81% 82% 85%

Average Months to Serve 66 59 63

Money Laundering

2025 2024 2023

Investigations Initiated 1153 1080 955

Prosecution Recommendations 868 805 805

Informations/ Indictments 695 693 675

Sentenced 549 515 479

Incarceration Rate 86% 81% 84%

Average Months to Serve 75 67 74

Narcotics

2025 2024 2023

Investigations Initiated 577 627 528

Prosecution Recommendations 505 523 480

Informations/ Indictments 452 514 451

Sentenced 489 468 418

Incarceration Rate 83% 82% 85%

Average Months to Serve 89 83 89

Non-Filer

2025 2024 2023

Investigations Initiated 245 221 251

Prosecution Recommendations 147 131 141

Informations/ Indictments 118 127 115

Sentenced 126 101 116

Incarceration Rate 80% 75% 83%

Average Months to Serve 34 25 28

Public Corruption

2025 2024 2023

Investigations Initiated 32 44 37

Prosecution Recommendations 25 38 18

Informations/ Indictments 31 34 15

Sentenced 28 26 38

Incarceration Rate 79% 77% 82%

Average Months to Serve 51 32 37

IRS-CI ANNUAL REPORT 2025

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