Four Sovereign Citizen movement members have been convicted and sentenced for their roles in a massive tax refund fraud scheme. The Jarlik Bells, Raymond Leo Jarlik Bell and Ute Christine Jarlik Bell, were found guilty of four counts of filing false, fictitious, and fraudulent claims, with Raymond Leo also facing additional charges of assisting in filing false tax returns, mail fraud, and obstruction of justice.
The jury took five hours to deliberate before delivering their verdict. The couple from Yelm, Washington, are scheduled for sentencing on June 14, 2013, at the U.S. District Court in Tacoma. The investigation into their activities led to the uncovering of a related scheme by Kenneth Wayne Leaming and David Carroll Stephenson, who were also convicted of federal charges.
U.S. Attorney Jenny A. Durkan emphasized that while citizens have the right to criticize government, this does not extend to committing crimes. “These defendants repeatedly broke the law with frauds aimed at taxpayers and public servants,” Durkan said. “We are grateful the jury held them accountable.”
The Jarlik Bells were involved in a scheme known as OID (Original Issue Discount) fraud. They obtained over $30,000 in tax refunds using this method in 2006. Six others were also advised by Raymond Leo Jarlik Bell to file fraudulent claims, with one woman receiving a refund of over $590,000.
Kenneth J. Hines, Special Agent in Charge of IRS Criminal Investigation for the Pacific Northwest, warned against those peddling false ideas about tax schemes. “The notion that there is a secret way to get the government to pay you money you are not entitled to is just plain wrong,” Hines said.
Law enforcement’s search of the Jarlik Bells’ home revealed material implicating Leaming in separate criminal conduct. A subsequent search at Leaming’s Spanaway, Washington, residence found six firearms and two wanted federal fugitives from Arkansas living with him. Leaming was also found to have been conspiring with Stephenson to file false liens against federal officials.
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Key Facts
- State: Washington
- Agency: DOJ USAO
- Category: Drug Trafficking|Fraud & Financial Crimes|White Collar Crime|Organized Crime
- Source: Official Source ↗
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