U.S. DEPARTMENT OF JUSTICEU.S. DEPARTMENT OF JUSTICE
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United States Attorney’s Office
Northern District of California
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11th Floor, Federal Building
450 Golden Gate Avenue, Box 36055
San Francisco, California 94102
(415) 436-7200
FAX: (415) 436-7234
FOR IMMEDIATE RELEASE
January 10, 2006
PALM SPRINGS MAN INDICTED IN CONNECTION WITH
SCHEME TO DEFRAUD IRS
SAN FRANCISCO – United States Attorney Kevin V. Ryan announced that a federal grand jury in San Francisco indicted Kenneth Gerald Bordewick, of Palm Springs, California, today with nine counts of mail fraud and one count of corruptly obstructing or impeding the due administration of the tax laws.
According to the indictment, Mr. Bordewick, is alleged to have created a fraudulent Certificate of Release of Federal Tax Lien and a fraudulent Mechanic’s Lien in favor of Robert Morrison, the person with whom he lived, as part of a scheme to obstruct the Internal Revenue Service’s efforts to collect unpaid employment taxes from the sale proceeds of a condominium. The scheme involved the delivery of the fraudulent release of lien and fraudulent mechanic’s lien to the title company responsible for the escrow for the condominium causing the title company to fail to pay the taxes. Instead, the title company pursuant to Bordewick’s instructions mailed the proceeds of the sale, approximately $44,000, in nine checks made out to Morrison to their residence address in Palm Springs.
The maximum statutory penalty for each count of mail fraud in violation of 18 U.S.C. § 1341 is 20 years and a fine of $250,000 and for the count of corruptly endeavoring to obstruct or impede the due administration of the tax laws in violation of 26 U.S.C. § 7212(a) is 3 years and $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. An indictment contains only allegations against an individual and, as with all defendants, Mr. Bordewick must be presumed innocent unless and until proven guilty.
David L. Denier is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kathy Tat. The prosecution is the result of a one year investigation by agents of the Internal Revenue’s Criminal Investigation Division.
Further Information:
A copy of this press release may be found on the U.S. Attorney’s Office’s website at www.usdoj.gov/usao/can.
Electronic court filings and further procedural and docket information are available at https://ecf.cand.uscourts.gov/cgi-bin/login.pl.
Judges’ calendars with schedules for upcoming court hearings can be viewed on the court’s website at www.cand.uscourts.gov.
All press inquiries to the U.S. Attorney’s Office should be directed to Luke Macaulay at (415) 436-6757 or by email at Luke.Macaulay@usdoj.gov.
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