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Warren Father and Son Accused of Tax Evasion and Structuring
ERIE, Pa. – In a shocking turn of events, a federal grand jury in Erie has indicted Randall Branch, 62, and his son John Branch, 43, both residents of Warren, Pennsylvania, on charges of violating federal tax and currency transaction laws. United States Attorney David J. Hickton announced the indictment today.
The indictment, which spans 18 counts, accuses the defendants of conspiring to defraud the United States by impeding, impairing, obstructing, and defeating the lawful Government functions of the Internal Revenue Service (IRS). Additionally, they are charged with conspiring to structure financial transactions to avoid currency transaction reporting requirements and failing to file income tax returns for the years 2009, 2010, and 2011.
According to the indictment, the Branch family-owned business, which sold oil and natural gas through various brokers, raked in a combined gross income of over $6,900,000 between 2006 and 2012. Despite their substantial earnings, the defendants allegedly stopped filing tax returns with the IRS after 1997 and began disputing their obligation to pay taxes. They even went so far as to challenge the authority of the IRS to assess and collect taxes.
As part of their alleged conspiracy, the defendants used a complex system to avoid financial threshold reporting requirements on the FinCEN Form 104, Currency Transaction Report (CTR). They did this by breaking down large business receipts into smaller checks, each under $10,000, and cashing them at different bank branches on the same day. They also used these checks to obtain bank teller checks to pay expenses and make purchases of assets, including real estate and vehicles.
The investigation, led by the Internal Revenue Service, Criminal Investigation, revealed that the defendants used cash and business receipt checks to fund wire transfers for the purchase of approximately $484,367 worth of precious metals. This brazen move was allegedly designed to impede the function of the IRS to assess and collect taxes.
Assistant United States Attorney Marshall J. Piccinini is prosecuting the case on behalf of the government. If convicted, each defendant faces a maximum sentence of 63 years in prison, a fine of $3,300,000, or both. The actual sentence will depend on the seriousness of the offenses and the prior criminal history of the defendants.
It’s essential to note that an indictment is merely an accusation, and the defendants are presumed innocent until proven guilty. The case will be heard in a federal court in Erie, Pennsylvania.
Key Facts
- State: Pennsylvania
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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