ATLANTA – Eight individuals have been sentenced to federal prison for their roles in a brazen, multi-million dollar tax fraud and money laundering conspiracy that treated the U.S. Treasury like a personal piggy bank. The scheme, operating out of Atlanta, involved filing over 100 fraudulent corporate tax returns between 2009 and 2012, attempting to claim a staggering $35 million in fuel tax refunds.
The ringleaders and accomplices – Calvin C. Barnes a/k/a “Big Cal”, Sharon Cecal, Kenneth Cottrell, Zechariah Daniel a/k/a “Zech” a/k/a Leroy Harris, Derrick Lawson, Reynolds Scott III, Anthony Shivers and Calvin C. William a/k/a “Lil’ Cal” – were all indicted in United States v. Calvin C. Barnes et al., and have now faced the consequences of their greed. U.S. Attorney Byung J. Pak minced no words, stating the defendants “conspired to file false claim after false claim…stealing from every honest taxpayer in the process.”
The operation hinged on exploiting loopholes in the fuel tax refund system, falsely claiming refunds for fuel supposedly used in off-road vehicles. The IRS initially paid out over $5.6 million before investigators caught wind of the scheme in May 2012. The fraudulent claims were submitted using hijacked corporations and shell companies – entities that never actually operated off-road vehicles or paid the taxes they claimed. The scale of the fraud suggests a sophisticated operation, carefully designed to evade detection.
The break in the case came from an unlikely source: a defendant in an unrelated federal fraud case who decided to cooperate with law enforcement. This cooperator, working with U.S. Secret Service agents, orchestrated a series of undercover meetings with key conspirators Anthony Shivers and his brother, Charlie Shivers III, a recognized leader of the operation. Recordings from these meetings laid bare the inner workings of the scheme, detailing the roles of each member and the methods used to prepare and file the false returns.
A subsequent raid on the home of Charlie Shivers III in May 2012 yielded a treasure trove of evidence: fraudulent tax returns, copies of refund checks, bank records, addresses used for mailing the fraudulent checks, and cryptic notes detailing filing dates and requested refund amounts. The sheer volume of evidence, coupled with the cooperation of other defendants, solidified the case against the entire conspiracy. James Dorsey, Acting Special Agent in Charge of IRS Criminal Investigation, emphasized that tax fraud schemes are becoming increasingly complex, but his agency remains committed to uncovering them.
Kenneth Cronin, Special Agent in Charge of the United States Secret Service, Atlanta Field Office, stated the sentencing is a warning to criminals that stealing from the American people will not go unpunished. The Secret Service, working with its partners, will continue to aggressively pursue and arrest offenders who violate the public’s trust. The U.S. Attorney’s office confirmed that, in addition to prison sentences, all defendants have been ordered to pay substantial restitution to recover the stolen funds and ensure that crime doesn’t pay.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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