COURT ENJOINS EIGHT PERSONS TIED TO DEFUNCT TELEMARKETING FIRM

National Audit Defense Network’S Tax Scams Alleged To Cost Treasury Hundreds Of Millions

WASHINGTON, D.C. - The Justice Department announced today that a federal court in Las Vegas has entered injunction orders against eight individuals related to a now-defunct telemarketing firm, Las Vegas-based National Audit Defense Network, known as NADN.

The orders include a preliminary injunction against NADN’s former president Weston Coolidge, former general manager Alan Rodrigues, and former manager Adam Mangabang, which bars the three men from selling fraudulent tax schemes and from preparing income tax returns for others. The court also entered a similar preliminary injunction against a related company, ALR, Inc., doing business as Success Matrix Group, and three associated persons, Lee Panelli, Jeff Klingenberg, and Ric Klingenberg. The court also permanently barred Christine Reid and Mary Orie from preparing false tax documents. All of the defendants consented to the injunctions.

The court also ordered ALR, Panelli, both Klingenbergs, Reid, and Orie to provide the government with a list containing their customers’ names, telephone numbers, mailing and e-mail addresses, and Social Security or employer identification numbers.

Court papers filed by the Justice Department estimated that customers using NADN’s tax schemes underpaid $324 million in federal income taxes over a three-year period.

“The Department of Justice and the Internal Revenue Service are working together to shut down tax fraud schemes,” said Eileen J. O’Connor, Assistant Attorney General for the Justice Department’s Tax Division. She thanked Tax Division trial attorneys Evan J. Davis, Phyllis Jo Gervasio, and Karen G. Gregory, Tax Division paralegal Marion Goyette, and IRS revenue agents Sue Cutler and David Gordon for their work on this case.

This case is part of the Justice Department’s “Operation Roaming Charge,” which targets international and domestic telemarketing fraud. Information about Operation Roaming Charge is available at http://www.usdoj.gov/opa/pr/2004/October/04_crm_680.htm

More information about this case, including prior injunction orders and a copy of the complaint and brief in support of motion for preliminary injunction, are available at
http://www.usdoj.gov/tax/txdv04233.htm;
http://www.usdoj.gov/tax/txdv04233.htm
http://www.usdoj.gov/tax/txdv04309.htm and
http://www.usdoj.gov/tax/txdv04395.htm

More information about the Justice Department’s Tax Division is available at http://www.usdoj.gov/tax/index.html

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