We will be discussing TAX public policy this week and will start with DRUG TAX STAMPS ------where IRS comes after illegally gained income as a tool to break up illegal black market cartels. It is true IRS could care less if that income is illegal or legal---they simply want those TAXES on income.
While these laws are widely discussed for DRUG seizures and income----these laws are broad and cover illegal black market ---money-laundering activities to include NOSY NEIGHBORS AND THE GANG illegal surveillance and PORN networks.
We emphasize to victims of these illegal surveillance captures whether BUILDING OWNERS not wanting NOSY NEIGHBORS AND THE GANG illegal PORN activities hacked into their buildings----to residents of homes and apartments having been HACKED ========you have more resources towards lawsuits and justice then simply having a POLICE OFFICER follow-up your claims of illegal surveillance devices and hacking into electrical circuits of any building----including getting THE TAX MAN involved looking at what NOSY NEIGHBORS like to brag are LOTS OF MONEY being made in these illegal black market PORN and SEX TRADE networks------
Every community in BALTIMORE is saturated with NOSY NEIGHBORS AND THE GANG 'HITTING' this man---that woman----those families-----even their DOGS AND CATS. NO, contrary to popular FEEDBACK from public surveillance THE NETWORK----no one is protected from being made PORN by these illegal surveillance structures----most people simply don't hit the PUBLIC STONING by being placed on THE NETWORK for all GROUP SPEAK AND CHATTERERS to know.
Drug and Cannabis Tax Stamps
Below we see an example of a person who just may be living in a house/apartment captured by NOSY NEIGHBORS AND THE GANG----wondering why after following all kinds of energy saving techniques is he still paying double-triple what his monthly electricity bill should be. When NOSY NEIGHBORS hack devices inside your house or have a former tenet place cameras inside apartment or building living spaces----these NOSY NEIGHBORS can then transfer all the energy expenses of operating cameras 24/7 =======to that building or that apartment.
Mt. Vernon· 1 year ago
This is helpful to know. My gf and I have been fighting over the electric bill this winter. We're supposedly doubling the average of our neighbors, which is shocking to me since we keep the thermostat at 68 and turn lights off whenever possible and generally just try and conserve energy. We even unplug iPhone chargers to avoid any vampiric drain or whatever you call it when they aren't in use.
I thought our fridge was sucking up juice or something. We can't figure it out. But it seems like BGE's numbers are bullshit and prices are just high everywhere. Which makes me wonder why BGE is bullshitting us with their numbers in the first place...
One way to know that your BUILDING is captured is looking in basement at METERS/FUSE BOXES to see if one floor or other has unusually HIGH----or unusually LOW electrical energy use.
NOSY NEIGHBORS love to say the victims of HITTING are consenting SEX PERFORMERS---these people WORK FOR ME-----these people are OWNED BY ME------so,
SHOW THE IRS THE MONEY TRAIL.
If NOSY NEIGHBORS are paying these people there should be employment records and tax payments. If NOSY NEIGHBORS really think they OWN these SEX SLAVES then show the IRS ownership records. As important------do NOSY NEIGHBORS file an IRS TAX FORM each year declaring all this illegal black market income----if not,
THE TAX MAN WANTS TO KNOW.
ARE THESE WOMEN REALLY SELLING THEMSELVES OR ARE THEY VICTIMS OF ILLEGAL SURVEILLANCE PORN THEY DON'T EVEN KNOW EXISTS IN THEIR LIVING SPACES?
'“Who reported my premium Snapchat to the IRS? I’m being f***ing audited,” followed by a call to report more of the sex traffickers'.
Should People Who Sell Sex Report Their Earnings To The IRS?
Over Thanksgiving weekend, social media blew up over an internet subculture of women who trade images of lewd acts for money.
By Jon Del Arroz
November 28, 2018
Over Thanksgiving weekend, social media blew up over an internet subculture of women who trade pictures and videos of themselves performing lewd acts for money. Online activists took to social media to slow this shameful trade. It resulted in a viral hashtag, #ThotAudit, in which thousands of people reported these profiles to the Internal Revenue Service of suspected tax fraud.
Thot is internet slang for “that ho over there.” The word is meant to denigrate a female. In the context of the #ThotAudit, it’s being used to describe a subculture of online prostitutes of various types. Such women set up “premium” accounts, in which they deliver varying levels of pornography, often accompanied with promises of social interaction ranging from private messengers to monthly video calls via Skype, some charging up to $3,000 a month for their interactions.
As one woman stated on her Patreon account: “I will do some other miscellaneous worthless craft that takes no skill to make you feel like I care about you [sic].” While this may raise some red flags in a reader’s mind about its legality, the technical definition of what these women do is creating pornography, so it’s legal.
This internet sex subculture bothered a young bodybuilder by the name of David Wu. His first online mention of the problem came early Thanksgiving morning, when he reposted a question on his Facebook profile: “Why do sex workers demand respect when they don’t even respect themselves?”
THAT IS MY QUESTION TO NOSY NEIGHBORS WHO ARE INDEED SEX WORKERS
He escalated the question later in the day by posting a poll asking “Is ‘sex work’ real work?” The poll was swarmed in comments, apparently by sex sellers and their followers. The overwhelming response inspired Wu to push further against the pervasive online porn culture.
These people who sell sex for money have online “tip jars,” but many don’t report their earnings. Wu made a post that has, as of this writing, been shared nearly 19,000 times. It took a screenshot of an Internet pornography seller who posed the question: “Who reported my premium Snapchat to the IRS? I’m being f***ing audited,” followed by a call to report more of the sex traffickers.
He posted a handy link to the IRS. This site not only gives the information on how to report but offers a form where an informant can collect a percentage of the unpaid taxes from the IRS as a bounty if their information turns out to be correct.
Once Wu’s post went viral, it spurred a storm of panic among pornographers. Hundreds of these profiles were reported over the weekend. One posted in response, turning it into a feminist talking point: “A bunch of men on Twitter are mad because they believe they’re entitled to free nudes, so they’re reporting sex workers’ Snapchat incomes to the IRS for audits… …Just say you hate women & leave.”
Australian reporter Frank Chung spun the concern for tax fraud into politics, stating, “Right-wing trolls report online sex workers to tax authorities in #ThotAudit,” also calling the people reporting on the potentially illegal behavior of sex workers “incels.” The incel charge has been repeated frequently in conjunction with the hashtag. The term refers to people who are not sexually active and will likely never be, despite wishing to be. It’s most used derogatorily toward men who are perceived as unable to obtain sex.
PJ Media’s Megan Fox responded by saying “Imagine having so low of an opinion of your writing that you have to increase sales by auctioning off nudes of yourself at 40.” Fox published an article titled “Fed-Up Gamers Report Intrusive Sex Workers to the IRS for Tax Evasion,” concluding, “As a mother of daughters, this campaign strikes me as morally good. If this can dissuade young girls from using their genitals to make money off men who are betraying their wives, I’m all for it.”
People who sell sex and sexual images, as well as some feminists, try to normalize porn and prostitution. However, it is important to note this weekend’s outrage was directed not at the morality of their actions, but whether they’re paying taxes.
The argument feminists have made on repeat is “Sex work is real work.” If this is the case, shouldn’t such workers be subject to the same tax laws as the rest of us? Provocateur and pick-up artist Roosh made several snide comments about the pushback, stating, “I’m finding it hard to believe that women are not reporting income that is direct deposited into a bank account linked to their social security number, but their anger at the #ThotAudit shows that’s exactly the case. It’s like they think laws don’t apply to them or something.”
There’s one positive aspect about those angered by the call to ensure these “jobs” are properly taxed: these young women are coming to understand the conservative and libertarian stances on taxation and how it affects normal people. Taxation does feel like the theft of money into the endless pit of government, and when you’re not used to having it taken from you, it can be a real eye-opener.
As such, it’s best to have sympathy on these poor women who are at risk of losing their incomes and let them know that if they really want to stop this online persecution by tax, they must vote for Republicans for Congress in 2020.
Sending PORN and SEX TRADE workers to jail for TAX EVASION has a long history in US courts driven by investigations by IRS partnered with US JUSTICE DEPARTMENT. When organized crime is hard to convict criminally ---as NOSY NEIGHBORS like to think about illegal surveillance and PORN-----then the round-about way to get black market criminals is calling THE TAX MAN.
'"This is a sobering lesson that obviously the income tax laws are not to be evaded," added William Margold, a well-known promoter, producer and actor in X-rated films'.
Where mainstream media like to create headlines over these laws tied to WAR ON DRUGS---and asset seizures tied to income from DRUG MULES------PORN MULES fall under same IRS legal structure----illegal income taxed just the same as legal income. CAPONE was not into drugs---mostly gangster thuggery and bootlegging---but $215,000 was a lot of money in those days.
'Capone was targeted by federal authorities. In May 1929, he was arrested and sentenced to a year in prison on a weapons charge. He served nine months in a luxurious prison cell and resumed control of the mob upon his release, but his rule would be short-lived. In 1931, he was indicted for tax evasion.
He at first pleaded guilty, believing that he would receive another short sentence, but the judge informed him that was not the case. Capone changed his plea and agreed to go to trial. He was found guilty on Oct. 17, 1931. On Nov. 24, he was given an 11-year prison sentence, ordered to pay $215,000 in back taxes, and fined $50,000.
Capone’s successful conviction set a precedent for future law enforcement officials. Tax evasion would become a popular way to convict participants in organized crime if more substantial evidence was not available'.
Of course not many black market criminals report their income but it is a tool for US Justice Department and IRS to create criminal charges against what is RICO RACKETEERING cartels like NOSY NEIGHBORS AND THE GANG.
No Heir Apparent for Toppled Porn King : Justice: Home video has decentralized the industry.
But others are wary after the Van Nuys man's tax conviction.
JOHN JOHNSONTIMES STAFF WRITER
Dec 4, 1989
The conviction of Reuben Sturman, whom police once called America's Kingpin of Pornography, is setting off a scramble among competitors eager to move in on the X-rated territory he staked out for two decades, authorities say.
But a number of pornography experts argue that the industry has changed so much that it will be difficult for any one person to emerge as the dominant figure that Sturman, with his preference for European luxury cars and finely tailored clothes, has been.
Sturman, 65, who owns a 5,610-square-foot, Tudor-style house in Van Nuys, was convicted in U.S. District Court in Cleveland on Nov. 17 of 16 counts of conspiracy, tax fraud and violating foreign banking requirements.
He was accused of failing to pay taxes on $2.7 million in income between 1978 and 1982, and could be sentenced to up to 70 years in prison, according to federal attorneys. Sturman's son, David, and business associate Ralph Levine were each convicted of one count of conspiracy. Four other Sturman employees pleaded guilty to charges ranging from lying to a grand jury to making false statements on tax returns.
The elder Sturman still faces trial in Las Vegas next year on obscenity and racketeering charges. He is free on a $1-million bond, $500,000 of which was put up by a Dutch corporation, Scala Agenturen, B.V. Sturman has been ordered to appear in Cleveland federal court today to disclose the nature of the firm.
Sturman was unavailable for comment, but word of his conviction was deeply felt in the industry he helped create. "Nobody likes to see this happen to a person who has devoted so many years to the industry," said Marty Turkel, vice president of VCA Pictures in Chatsworth.
"This is a sobering lesson that obviously the income tax laws are not to be evaded," added William Margold, a well-known promoter, producer and actor in X-rated films.
Sturman is not the only well-known person in the adult entertainment industry to have run afoul of the IRS. Herbert Streicher, better known as Harry Reems--his stage name in "Deep Throat" and scores of other sex movies--was recently placed on five years probation and ordered to pay taxes on $35,000 in unreported income dating to 1982.
"We are continuing to look at all phases of the adult entertainment industry, including performers, producers, directors and distributors," said C. Philip Xanthos, branch chief of the IRS Criminal Investigation Division in Los Angeles.
Sturman for years has been the industry's best-known off-camera figure. Though he took care to shield his dealings from outside scrutiny, he built an empire of hundreds of adult bookstores across the United States and Europe, a North Hollywood warehouse and factory containing sexual paraphernalia and several video companies that produced X-rated movies, authorities said. One law enforcement source said Sturman's businesses took in between $1 million and $2 million a day.
The size of his fortune is a matter of speculation, but the law enforcement source, who has followed Sturman's activities for several years, put it at more than $100 million.
But despite the fact that he had wielded power since the early 1970s, experts doubt that his departure will have a crippling effect on the erotica industry.
They explain that the adult entertainment business has become increasingly decentralized in recent years with the growth of home video, making it less subject to outside control. Dozens of companies have sprung up that are eager to supply low-budget sex films to video stores across the nation. A decade ago, it cost an average of $150,000 to produce an X-rated film, experts say. But today, a film can be shot using videotape for as little as $7,000.
Even before Sturman was found guilty in Cleveland, people had begun moving into areas he once controlled, law enforcement authorities said. Several adult bookstores have opened in cities where he was once dominant in the adult entertainment business, said one law enforcement source who asked to remain anonymous.
Steve Jigger, attorney in charge of the Cleveland office of the government's Organized Crime and Racketeering Strike Force, said Sturman has sold magazine distributorships in Denver, Detroit and Chicago. And Los Angeles law enforcement sources said he has sold several video companies in Southern California. These sources also report jockeying for other portions of his holdings in anticipation of his incarceration.
Sturman, who started in Cleveland when the industry was called the "girlie" business, began having trouble with the IRS 12 years ago. That was when the government started investigating reports that "people involved in this industry were diverting large amounts of income and failing to pay taxes on that income," Jigger said.
A witness testified at the trial in Cleveland that a courier from Chicago delivered to Sturman in an attache case tens of thousands of dollars that had been skimmed from peep machines, Jigger said. The case would be emptied and sent back by United Parcel Service, he said.
But the critical evidence against Sturman was supplied by Swiss banking officials, who opened up to American investigators accounts in which he and his associates had hidden money, Jigger said. This was the first time that a mutual assistance pact, which allows access to Swiss bank accounts, has been used in a tax revenue case. The Swiss agreed to open their records, according to Jigger, only after the U.S. government provided proof of Sturman's association with organized crime.
While the IRS declined to discuss the information it provided to the Swiss, the 1986 report by the Attorney General's Commission on Pornography said Sturman was "closely associated with known organized crime family members," especially Robert DiBernardo, identified in the report as a member of the Gambino (and/or De Cavalacante) crime families in New York and New Jersey.
The government pornography report quoted reputed mobster James Frattiano as saying that "Sturman and DiBernardo have had a long-term business relationship . . . they were partners, plus . . . if DeBe wanted (Sturman) to do something, he (Sturman) would do it."
The report said Sturman got his start more than 20 years ago as a "small-time candy, tobacco and comic book distributor who moved slowly into pornographic magazines." He eventually built his business into a worldwide enterprise.
Sturman operated out of a nondescript warehouse in a Cleveland ghetto, mostly through a company called Sovereign News, sources said. But government attorneys and law enforcement authorities said he set up a crazy quilt of corporations over the years to make it more difficult to unravel his business affairs.
The federal pornography report stated that by 1986 Sturman had control of 200 businesses in 19 states and six foreign countries. While he started out distributing magazines and putting peep machines into adult bookstores around the country, he moved into the video business when it boomed in the early 1980s, authorities said.
As his empire grew, he acquired a Rolls-Royce and favored expensive Bijan fashions, authorities said. One investigator said he is one of only a handful of people with an unlimited line of credit at one of the best-known Las Vegas casinos.
For 1979, according to IRS records, he declared an income of $1,237. But the IRS said his actual, adjusted income was $792,895 more than that. During the five-year period ending in 1982, he declared a total of $344,261, but the government said he actually earned $3,079,973, Jigger said.
Los Angeles vice authorities said Sturman moved to Southern California several years ago. His house on a quiet Van Nuys street is on a football-field-size lot surrounded by a five-foot-high fence and iron gates. When forced to appear in public for court hearings, he often hid his face behind a plastic Groucho Marx nose and glasses.
After DiBernardo disappeared several years ago, incidents of violence occurred that organized crime experts in Los Angeles think may have been directed at Sturman. These included a foiled plan to plant a bomb in a car driven by a Sturman associate in Chicago, as well as the firebombing of another associate's house in Texas, experts said. Authorities said DiBernardo was a go-between among the various crime families involved in pornography, and that once he was gone, powerful figures such as Sturman lost a valuable protector.
Two law enforcement experts, who asked not to be identified, said there could be some new trouble if Sturman goes to jail, as outsiders move into his territory. But others say Sturman has helped to reduce the possibility of violence by voluntarily divesting himself of assets. One source said he may already have unloaded the majority of his businesses, although some authorities said they think he might still be active behind the scenes in at least some of these firms.
Sgt. Don Smith, a Los Angeles Police Department pornography expert, said Sturman has sold three video companies in Southern California: Vidco, 4 Play Video and Lipstik Video. Smith said Sturman divested himself of the assets to avoid forfeiture under the RICO racketeering statute, under which he will be prosecuted in Las Vegas in March. RICO stands for Racketeer Influenced and Corrupt Organizations Act.
There are reports, law enforcement sources said, that Sturman also has begun selling peep machines located in bookstores around the country. Authorities believe the machines, into which a customer places quarters to watch a portion of an adult movie, were the principal source of the illegal skimming from Sturman's businesses.
In the 1970s, Smith said, there were only a handful of film distributors, and mob influence was extensive. But today, there are 48 companies nationwide--38 of them in Los Angeles, he said. Most are in the San Fernando Valley.
"The industry is so splintered now," Turkel said. "Reuben hasn't had the effect he had 15 years ago."
The industry also has lost some of its outlaw image now that adult films can be rented at mainstream video stores. In the 1970s, said Turkel, it was "an era of dark glasses and fedoras. Now it's shirt and tie."
A history of TAX law tied to IRS and STATE TAX collection started in REAGAN/CLINTON era mainly tied to WAR ON DRUGS. Many states still have TAX STAMPS for illegal gains for drug cartels ---------
We emphasize that even though US COURT rulings and precedence on these illegal income tax evasions targeted drug money-----there is plenty of cases dealing with all kinds of illegal income like NOSY NEIGHBORS AND THE GANG----illegal surveillance and PORN.
Think you are a victim of NOSY NEIGHBOR illegal surveillance and maybe being made PORN? Let the TAX MAN KNOW.
Dealers May Find New Drug War Tactic Very Taxing : States are placing levy on illegal sales. Failure to pay it can lead to huge penalties if traffickers are caught.
JENNIFER TOTHSPECIAL TO THE TIMES
An increasing number of states are adopting an unusual weapon in the war on drugs: They are starting to establish taxes on the sale of illegal narcotics, then using drug dealers' failure to pay the taxes as additional grounds for prosecuting them.
The idea is a variation on the technique the federal government used against Mafia mobster Al Capone and others during the Prohibition days of the 1920s. Capone eluded murder and racketeering charges, but Treasury agents finally snared him for tax-evasion.
These FEDERAL AND STATE laws tied to WAR ON DRUGS and asset seizure from illegal DRUG MULE income expanded to include all kinds of illegal income gains.
Below we see the IRS has a place for illegal black market income gains to be reported----if it is not, or even often if it is-----criminal charges on that illegal activity can be close at hand.
These tax laws for illegal income were constructed to be a catch 22.
The IRS wants to tax your illegal income
by Steve Hargreaves @hargreavesCNN March 7, 2013: 12:47 PM ET
The federal government requires drug dealers and embezzlers to pay taxes on their ill-gotten gains. Surprisingly, some do.
Dealt some drugs? Stole some cash?
There's a line on your income tax form to declare it.As ridiculous as it sounds, the federal government requires that money acquired through illegal means be reported and taxed just like legitimate income. It's right there on the official IRS tax instructions: "Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity."
Not surprisingly, tax experts say few criminals declare their loot.
But some do, often when they've either been caught during that tax year or think they are about to be caught, says Stephen Moskowitz, a San Francisco tax attorney at Moskowitz LLP who has helped several clients document their illegal gains. Their goal is to avoid getting charged twice: once for their initial crime, and again for evading the taxes on their windfall. After all, it was tax charges that ultimately put away Al Capone.
Many of today's criminals who choose to declare their illegal income are facing embezzlement charges, according to Moskowitz.
Like Tom Hughes, a New England accountant who was caught -- multiple times -- stealing money from his clients.
"I knew the money was taxable, there was no doubt about that," says Hughes, who now runs an anti-fraud consultancy called Hire-a-thief. "I had already been caught, and I didn't want to face federal tax charges."
He paid taxes on his illegal gains in 1999 and 2001, and again in 2004, after he stole from another client. After a nine-month prison stint, Hughes swears he's now reformed.
So how many self-confessed crooks does the Internal Revenue Service deal with each year? The agency isn't saying. A spokesman declined to discuss the issue, saying only that declaring illegal income "is what the law requires."
Documenting illegal income is tricky, Moskowitz says.
The IRS doesn't require any details on the return beyond an approximation of how much you made. The hard part comes if you get audited. There's usually no paper trail, so IRS agents will typically ask for the names and contact information for people that may have been part of the illegal transaction, Moskowitz says. The agency will then try to verify your numbers with them.
If you tell the IRS you made $1 million from stealing money or dealing drugs, does the agency tip off the cops?
Legally, it can't, unless a law-enforcement agency gets a court order granting it access to a specific taxpayer's return. The IRS isn't supposed to proactively alert other agencies about misdeeds unless terrorism is involved. In that case, it still needs a court order to disclose anything, but the IRS can initiate the legal process on its own.
The rules are all spelled out in an IRS guide to "section 6103," the law that covers tax-return confidentiality. Like many legal statutes, it's complex and filled with loopholes. For example, the IRS might not be allowed to share the contents of actual tax returns on its own initiative, but it can divulge supplemental information obtained from outside sources -- like witnesses interviewed in an audit investigation -- "to apprise federal criminal law enforcement agencies of possible crimes," according to the agency's guide.
Find hidden tax refund money
In practice, Moskowitz says he thinks information about illegal activities gets shared.
"Do they report you to other agencies?" he asks. "Absolutely."
Other experts agree.
"The IRS would most certainly immediately report it to law enforcement," says Joseph Henchman, vice president of legal and state projects at the Tax Foundation, a think tank.
The IRS' spokesman declined to comment on the issue.
Here's one upshot to declaring ill-gotten gains: If taxes are paid on it initially, and restitution is part of any settlement or judgment, that restitution is then tax-deductible, says Moskowitz.
If you decide to disclose your illegal loot, make sure to do it with the assistance of a tax attorney, not any old accountant.
"If there's anything we suspect is criminal, the first thing we do is tell people to get legal advice," says Gil Charney, principal tax researcher at H&R Block's (HRB) Tax Institute. "We don't have attorney-client privilege. If The IRS or any law enforcement agency contacts us, we have to provide that information."
These IRS TAX EVASION LAWS for illegal black market income are tied to US JUSTICE department investigations into RICO RACKETEERING and organized crime-----like NOSY NEIGHBORS AND THE GANG.
If someone is going to bring a RICO RACKETEERING or black market PORN NETWORK lawsuit to US FEDERAL COURT-----beginning with IRS tax evasion is a good start.
NOSY NEIGHBORS AND THE GANG like to think they are doing nothing illegal in illegally surveillance inside a person's living space---but they are. The IRS does care---illegal gains taxed just as legal gains. So, the delusion of NOSY NEIGHBORS of having a legitimate business would include paying taxes on PORN GAINS.
Narcotics-Related Financial Investigations - Criminal Investigation (CI)
Why is IRS Involved in Narcotics Investigations?
One look at the daily newspaper is proof enough that crimes dealing with or motivated by money make up the majority of current criminal activity in the nation. Tax evasion, public corruption, health care fraud, and even drug trafficking are all examples of the types of crimes that revolve around money. In these cases, a financial investigation often becomes the key to a conviction.
Traditional law enforcement relies on investigative tools such as crime scene analysis, physical evidence, fingerprint identification or eyewitness accounts. The limitations of these techniques become obvious to those who are trying to prove wrongdoing in a sophisticated financial crime. With no proof, there is no conviction.
When the Internal Revenue Service astounded Public Enemy Number 1, Alphonse Capone by obtaining a conviction for tax evasion and demanding millions of dollars in back taxes, Capone said, "They can't collect legal taxes from illegal money." But it's really pretty simple: No matter what the source of income -- all income is taxable.
And this creates a real problem for drug dealers. What are they going to do with their money -- so that IRS won't find it?
For the IRS, money laundering and narcotics investigations are the compliance effort to address criminal violations of the Bank Secrecy Act, the Money Laundering Control Act of 1986 and section 6050(I) of the Internal Revenue Code.
Why a Financial Investigation?
Financial investigations are by their nature very document intensive. Specifically, they involve records, like bank account information and real estate files, which point to the movement of money. Any record that pertains to, or shows the paper trail of events involving money is important. The major goal in a financial investigation is to identify and document the movement of money during the course of a crime. The link between where the money comes from, who gets it, when it is received and where it is stored or deposited, can provide proof of criminal activity.
Criminal Investigation's contribution to the war on narcotics is vital but sometimes difficult to recognize, because the work of IRS special agents usually doesn't make the headlines. The long hours of tracking down and documenting financial leads isn't glamorous, but it does allow an investigation to go right to the door of the leader of the narcotics organization. A complete financial analysis and reconstruction of a drug organization's financial activity as it relates to unreported income on tax returns and money laundering can often be critical to making the conviction.
Criminal Investigation (CI) was established in 1919 and commenced its first narcotics investigation of an opium trafficker in Hawaii in the early 1920's, obtaining tax evasion charges against the leader of that organization.
The CI Narcotics Program's goal is to utilize the financial investigative expertise of its special agents to disrupt and dismantle, through investigation, prosecution and asset forfeiture, the country's major drug and money laundering organizations.
Federal Statutes, Task Forces and Strategies Regarding IRS Narcotics Investigations
Definition of Terms
Currency Transaction Report (CTR) - Form 4789:
Filed by financial institutions that engage in a currency transaction in excess of $10,000.
Suspicious Activity Report (SAR) - Form TD F 90-22.47:
Filed by financial institutions on transactions or attempted transactions involving at least $5,000 that the financial institution knows, suspects, or has reason to suspect the money was derived from illegal activities.
Report of Foreign Bank and Financial Accounts (FBAR) - Form TD F 90-22.1:
Filed by individuals to report a financial interest in or signatory authority over one or more accounts in foreign countries, if the aggregate value of these accounts exceed $10,000 at any time during the calendar year.
Report of Cash Payments Over $10,000 Received in a Trade or Business -Form 8300:
Filed by persons engaged in a trade or business who, in the course of that trade or business, receive more than $10,000 in cash in one transaction or two or more related transactions within a twelve month period.
Report of International Transportation of Currency or Monetary Instruments (CMIR) - Form 4790:
filed by persons who physically transport, mail or ship currency or other monetary instruments in an aggregate amount exceeding $10,000 at any one time into or out of the United States.
Internal Revenue Code – CI has sole jurisdiction for criminal violations of the Internal Revenue Code (IRC), Title 26 of the United States Code. The IRC, Section 61(a) defines gross income as ". . . all income from whatever source derived." This has been held by the courts to include income earned from illegal activities such as drug trafficking. The primary criminal statutes violated include evasion of income tax, false income tax returns, and failure to file tax returns, among others.
Additionally, IRC, Section 6050(i), requires anyone involved in a trade or business, except financial institutions, to report currency received for goods or services in excess of $10,000. This requirement has provided a significant impediment to the use of illicit profits by narcotics traffickers for the purchase of luxury items such as vehicles, jewelry and boats. Financial institutions report similar information on a Currency Transaction Report.
A new law, Title 31, Section 5331 of the United States Code, was passed in 2001 as a result of the USA Patriot Act and duplicates the reporting provisions of IRC, Section 6050(i). Dual reporting of this information will now be made to both the IRS and the Treasury Department's Financial Crimes Enforcement Network (FinCEN).
Money Laundering Control Act of 1986 – CI investigates and recommends criminal prosecution for violations of Title 18, United States Code, Sections 1956 and 1957. These statutes make illegal certain financial transactions constituting laundering, hiding, or use of proceeds generated through specified unlawful activities, such as narcotics trafficking and embezzlement, among others.
Bank Secrecy Act – The Currency and Foreign Transactions Reporting Act, Public Law No. 91-508, Title II, along with financial institution record-keeping requirements, became known as the Bank Secrecy Act (BSA). The BSA mandates the reporting of certain currency transactions conducted with a financial institution, (Form 4789), the disclosure of foreign bank accounts (TD F 90-22.1), and the reporting of the transportation of currency exceeding $10,000 across United States borders (Form 4790).
Asset Forfeiture – The asset forfeiture program is one of the federal government's most effective tools against drug trafficking, money laundering, and organized crime. In conjunction with other federal, state, and local law enforcement agencies, CI uses asset forfeiture statutes to dismantle criminal enterprises by seizing and forfeiting their assets. Most of CI's seizures and forfeitures are the result of Title 18 and Title 31 money laundering and currency investigations.
Criminal Investigation (CI) Supports National Strategies and Initiatives:
Criminal Investigation supports national law enforcement strategies and initiatives by investigating and recommending prosecution of domestic and international narcotics traffickers and related money-laundering organizations. CI follows the money trail, tracing the profits from the illegal activity back to the criminal.
To focus our resources against major money laundering organizations, CI participates in inter-agency task forces in High Risk Money Laundering and Related Financial Crimes Areas (HIFCAs); intensifies the use of federal criminal and civil asset forfeiture laws; and enhances intra-agency, inter-agency, and international coordination of money laundering investigations.
High Intensity Money Laundering and Related Financial Crime Area (HIFCA) Task Forces
Mandated in the National Money Laundering Strategy, HIFCAs occupy the flagship role in the nation's efforts to disrupt and dismantle large-scale money laundering systems and organizations.
The designation of a HIFCA is intended to concentrate law enforcement efforts at the federal, state, and local level on combating money laundering in high-intensity money laundering zones, whether based on drug trafficking or other crimes. The 2001 Money Laundering Strategy announced the designation of two new HIFCA locations: Northern District of Illinois (Chicago) and Northern District of California (San Francisco). The four HIFCAs named in the 2000 strategy were: New York/New Jersey; San Juan/Puerto Rico; Los Angeles; and a "systems HIFCA," designed to address cross-border currency smuggling in Texas/Arizona to and from Mexico. HIFCAs are composed of all relevant federal, state, and local enforcement authorities; prosecutors; and federal financial supervisory agencies as needed. They work closely with the High Intensity Drug Trafficking Areas (HIDTA) and Organized Crime Drug Enforcement Task Forces (OCDETF) and focus on collaborative investigative techniques.
Office of National Drug Control Policy (ONDCP)
As part of the Anti-Drug Abuse Act of 1988, the President established the Office of National Drug Control Policy to oversee the nation's effort to combat illegal drugs. As part of that oversight authority, the Director of the ONDCP established a National Drug Control Strategy. This strategy directed agencies involved in counter-narcotics activities to focus their efforts on reducing the demand for drugs through treatment and prevention and by attacking and disrupting the drug supply through aggressive law enforcement and increased international cooperation.
Organized Crime Drug Enforcement Task Force (OCDETF)
The Organized Crime Drug Enforcement Task Force (OCDETF) Program was created and is managed by the Department of Justice "to identify, investigate, and prosecute members of high-level drug trafficking enterprises, and to destroy the operations of those organizations." IRS CI is substantially reimbursed for the resources it commits to the war on narcotics trafficking and has been a participating member of OCDETF since its inception in 1982.
High Intensity Drug Trafficking Area (HIDTA)
The High Intensity Drug Trafficking Areas (HIDTA) Program was established by the Anti-Drug Abuse Act of 1988, to provide assistance to federal, state and local law enforcement agencies operating in areas most adversely affected by drug trafficking. The Director of the Office of National Drug Control Policy (ONDCP) has oversight authority over the HIDTA Program . There are 28 locations designated as HIDTA. HIDTA initiatives focus on the investigation of money laundering violators and the identification and confiscation of the profits derived from the illegal sale of narcotics. Criminal Investigation supports HIDTA by dedicating special agents and other resources to the initiatives. CI provides the financial investigative perspective necessary to meet the goals of the National Drug Control Strategy.
Narcotics Enforcement Statistics
Criminal Investigation continues to commit financial investigative expertise to investigations involving highly complex narcotics related financial crimes
Examples of Narcotics-Related Financial Investigations
Examples are written from public record documents on file in the court records in the judicial district in which the cases were prosecuted. IRS Special Agents participated in the financial investigative aspect of these cases.
My situation with illegal HITTING stems from not only people simply wanting PORN INCOME but especially these several years of my being a very outspoken POLITICAL ACTION organization leader holding power accountable and being a REAL LEFT SOCIAL PROGRESSIVE as MOVING FORWARD takes the US further and further and further RIGHT.
Everyone in Baltimore understands my case is not CONSENTED/or PAID SEX WORKER---it is HITTING for surveillance and intimidation.
The point is this: as with EDGAR HOOVER and FBI after last ROBBER BARON roaring 20s widespread criminal cartel activity-----the BOOT came down on organized crime. That is what is now happening today as CLINTON/BUSH/OBAMA ROBBER BARON and its roaring 20s criminal cartel period is ending. TIME FOR EXTREME LAW AND ORDER say global banking as TRUMP/PENCE will bring in the MORAL POLICE-----and come down on NOSY NEIGHBORS AND THE GANG illegal video and PORN to include BLACK MARKET INCOME.
'The NSA has collected their online sexual activity, chats of a sexual nature that they’ve had, pornographic websites that they visit, and plans, in the document ...'
Whether it is the victim of NOSY NEIGHBOR illegal surveillance taking lawsuits to court----or this NSA/US JUSTICE DEPARTMENT-----turning moral after mass criminality-----NOSY NEIGHBORS and all that PORN is coming to an end at least for anyone not a GLOBAL CORPORATION.
The NSA spies on porn habits to discredit target ‘radicalizers’
J. Angelo Racoma November 29, 20130
In a leaked document, the NSA was found to have been using porn and other potentially-incriminating material in a plan to discredit its targets, who are potential “radicalizers” in the US and abroad.
Who knew that porn could be used as a tool to protect national security?
The National Security Agency has been criticized for its eavesdropping activities across the Internet, including spying on both domestic and foreign targets. While this is meant to be for intelligence purposes, recently-leaked documents spell out how the agency is likewise using targets’ online habits as a potential weapon for discrediting would-be “radicalizers”.
The NSA has reportedly gathered data on online sexual activity and has gone as far as log evidence of visits to pornographic websites, as part of a proposed plan to use this information to harm the reputations of would-be radicalizers. The leaked document, shared by whistleblower Edward Snowden, has actually identified six targets, identifying each one’s “personal vulnerabilities” that can be studied and exploited through electronic surveillance.
The plan is to undermine the target’s credibility, reputation and authority in his or her community, with the broader aim of preventing future terror acts. The document reports that “radicalizers appear to be particularly vulnerable in the area of authority when their private and public behaviors are not consistent.” Some findings included “viewing sexually-explicit content online,” as well as “using sexually explicit persuasive language when communicating with young girls.”
The director of the NSA was identified as the originator of the document, although intended recipients of the gathered information include other agencies, like the DoJ and DEA as recipients.
Civil liberty advocates have decried the act, saying it is prone to abuse, especially given how the NSA is likely to define “abuse” narrowly. However, government believes it is within legal bounds, because it is meant to prevent harm. “[I]t should not be surprising that the US Government uses all of the lawful tools at our disposal to impede the efforts of valid terrorist targets who seek to harm the nation and radicalize others to violence,” said Shawn Turner, director of public affairs for National Intelligence.
Another agreement in favor of spying and discrediting is that it may actually be more humane than dropping a bomb on human targets, argued a former NSA official, comparing the tactic as “dropping the truth on them” instead of resorting to violence. In fact, the same tactic had been used by the government against political leaders and activists, whether as a means of blackmail, harassment or straight out discrediting. The information usually involves sex — homosexuality (a big deal during the mid 20th century), extramarital affairs, and now pornography.