MAN CONVICTED OF TAX FRAUD FACES UP TO 23 YEARS IN PRISON, $1.2 MILLION IN FINES

FROM:  JUSTICE DEPARTMENT 
Wednesday, January 22, 2014
Florida Man Convicted of Tax Fraud

The Justice Department and the Internal Revenue Service (IRS) announced today that on Jan. 21, 2014, a federal jury in Palm Beach, Fla., convicted Paul F. Wrubleski, a resident of Weston, Fla., of one count of corruptly impeding the due administration of the internal revenue laws and four counts of filing false claims for tax refunds.  Wrubleski was remanded into custody yesterday.

According to court documents and the evidence presented at trial, Wrubleski had a decade-long pattern of filing false documents with the IRS.  Wrubleski impeded the IRS by filing false W-4 forms that claimed he was exempt from income tax withholding and by filing false tax returns, including four tax returns that requested over $1.5 million in federal refunds.  Wrubleski also sent obstructive letters, tax returns and other false documents to the IRS between 1999 and 2010.  In addition, the indictment alleged and the evidence proved that Wrubleski filed for bankruptcy in 2006 in order to impede IRS collection actions.

Sentencing is scheduled for April 3, 2014.  Wrubleski faces a statutory maximum potential sentence of 23 years in prison and faces a fine of up to $1.2 million.

Assistant Attorney General Kathryn Keneally of the Tax Division commended the efforts of special agents of IRS – Criminal Investigation who investigated the case, as well as Tax Division Trial Attorneys Charles Edgar Jr. and Jed Silversmith, who prosecuted the case, with local assistance from the U.S. Attorney’s Office for the Southern District of Florida.

COURT ORDERS MAN TO PAY NFA $1.5 MILLION FOR MISREPRESENTATIONS AND SOLICITATION FRAUD

FROM:  U.S. COMMODITY FUTURES TRADING COMMISSION 
November 27, 2013

Federal Court in California Orders James D. Crombie to Pay over $1.5 Million for Misrepresentations to the National Futures Association and for Solicitation Fraud

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court Order against defendant James D. Crombie of Virginia, requiring him to pay $789,540.47 in restitution to defrauded customers and a civil monetary penalty of $750,000. Crombie’s fraudulent scheme involved making false statements and providing false documents to the National Futures Association (NFA) and fraudulently soliciting funds for his former company, Paron Capital Management, LLC (Paron). The Order also imposes permanent trading and registration bans against Crombie and prohibits him from violating the Commodity Exchange Act, as charged.

The Order, entered on November 21, 2013 by the Honorable Claudia Wilken of the U.S. District Court for the Northern District of California, stems from a CFTC Complaint filed against Crombie and Paron on September 15, 2011 (see CFTC Press Release 6112-11). On September 5, 2012, the court entered a consent Order of permanent injunction against Crombie’s former company, Paron; that Order imposed no monetary penalties against Paron and noted its cooperation with the CFTC’s investigation.

The November 21, 2013 Order against Crombie incorporated the findings of fact and conclusions of law set forth in the court’s July 26, 2013 partial grant of the CFTC’s motion for summary judgment against Crombie, in which the court found that Crombie willfully provided false documents to the NFA and lied to the NFA during the course of a subsequent investigation of Paron. The court also found on summary judgment that Crombie caused Paron to use fraudulent promotional materials in order to solicit clients to trade commodity futures.

The CFTC appreciates the cooperation and assistance of the NFA in this matter.

The CFTC Division of Enforcement staff members responsible for this case are Jonathan Robell, Danielle Karst, John Einstman, Dmitriy Vilenskiy, Joan Manley, and Paul Hayeck.