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Almon Glenn Braswell, who raked in hundreds of millions of dollars marketing mail-order "anti-aging" products with misleading claims, has been charged with conspiring to evade millions of dollars in corporate and personal income taxes. The indictment, reproduced below, also charges attorney William E. Frantz, of Marietta, Georgia, and Robert B. Miller, a certified public accountant who resides in Canyon Country, California, with conspiring to evade corporate tax by falsely boosting expenses of his companies. During the late 1970s and early 1980s, Braswell was subjected to more than 140 civil regulatory actions related to false claims for products claimed to cure baldness, enlarge the female breast, delay the aging process, cause weight loss, remove "cellulite," and improve the growth and appearance of fingernails. In 1983, he was also convicted for mail fraud, perjury, and tax evasion, for which he subsequently served several months in prison. In recent years, most of Braswell's marketing has been done under the name Gero Vita International. The current indictment is reproduced below. If convicted of all charges Braswell faces a maximum possible penalty of 51 years in federal prison. In May 2003, the Federal Trade Commission filed a civil complaint charging Braswell with false advertising.


UNITED STATES DISTRICT COURT
FOR THE CENTRAL DISTRICT OF CALIFORNIA

June 2001 Grand Jury

UNITED STATES OF AMERICA,
 
Plaintiffs
 
v.
 
ALMON GLENN BRASWELL,
ROBERT BRUCE MILLER, AND
WILLIAM E. FRANTZ,
 
Defendants.
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CR 02-1267
 
INDICTMENT
 
[18 U.S.C. § 371 Conspiracy;
18 U.S.C. § 7201
18 U.S.C. § 7206 (1):
Subscribing To False Return]

The Grand Jury charges:

GENERAL ALLEGATIONS

At all times material to this indictment:

The Defendants

1. Defendant ALMON GLENN BRASWELL ("BRASWELL") was the sole shareholder of a number of affiliated corporations, including (a) a California corporation, G.B. Data Systems, Inc. ("GBDS") and (b) a Florida corporation, Gero Vita International, Inc. ("GVI") BRASWELL maintained a residence and office in Los Angeles, California.

2. Defendant ROBERT BRUCE MILLER ('MILLER") was a certified public accountant who maintained offices in Los Angeles, California. Defendant MILLER prepared corporate tax returns for GBDS and GVI.

3. Defendant WILLIAM E. FRANTZ ("FRANTZ") was a tax attorney and a partner in Frantz, Sanders & Grattan, LLP ("FS&G"), a law firm that maintained offices in Atlanta, Georgia. Defendant FRANTZ prepared personal tax returns for defendant BRASWELL

GBDS' and GVI's Business and Accounts

4. GBDS, GVI and BRASWELL's other affiliated corporations (collectively, "the Affiliated Corporations") maintained integrated offices, including accounting and purchasing departments, in Los Angeles, California. The Affiliated Corporations' bank accounts were maintained in GBDS' name, and the Affiliated Corporations' employees' wages were paid through GBDS.

5. GBDS and GVI were engaged in the business of selling nutritional supplements, by mail, to the public. GVI acquired the nutritional supplements by: (a) purchasing herbal products and other raw materials from third-party vendors (the "Raw Material Suppliers"); and (b) contracting with co-packers or laboratories (the "Manufacturers") to have the raw materials combined and processed into finished goods; The Raw Material Suppliers and Manufacturers were located in the United States, Canada and, in one instance, Spain. None of them were located in Bermuda.

6. GBDS maintained a number of corporate bank accounts, including (a) an account at the Bank of America in Las Vegas, Nevada (the "Bank of America Account") and (b) an account at the Royal Bank of Canada in Toronto, Canada (the "Royal Bank of Canada Account")

BRASWELL's and FRANTZ' Use of the FS&G Account for BRASWELL's Personal Benefit

7. FRANTZ' law firm, FS&G, maintained a bank account at Fidelity National Bank in Atlanta, Georgia (the "FS&G Account"). BRASWELL periodically caused GBDS' accounting personnel to transfer funds from GBDS' bank accounts to the FS&G account. In general, GBDS' accounting personnel recorded the transfers on GBDS' and the Affiliated Corporations' books and records as corporate investments.

8. Through FRANTZ, BRASWELL periodically used the funds in the FS&G Account for his own personal benefit, without disclosing the amounts or the purposes of the disbursements to GBDS' accounting personnel. As a result, BRASWELL and FRANTZ generally were able to disburse monies from the FS&G Account without the disbursements or BRASWELL's personal use of the monies being shown on GBDS' or the Affiliated Corporations' books and records.

BRASWELL's Sham Bermuda Corporation and Off-Shore Accounts

9. Vita International, Ltd. ("Vita") was a Bermuda corporation that BRASWELL beneficially owned and controlled.

10. On or about January 11, 1994, at FRANTZ' and BRASWELL's request, Vita's name was changed to Deleon Global Trading, Ltd. ("Deleon").

11. The affairs of Deleon were managed by a Bermuda management company, Hemisphere Management, Ltd. ("Hemisphere"), that was in the business of establishing and managing off-shore corporations and accounts for its clients. Deleon itself did not conduct any business, did not have any employees and did not maintain offices, in Bermuda, or elsewhere.

12. Hemisphere managed a number of bank accounts outside the United States on BRASWELL's behalf, including an account in Deleon's name at the Bank of Bermuda in Hamilton, Bermuda and an account in BRASWELL's name at the Bank of Butterfield, in the Cayman Islands (collectively, "the Offshore Accounts")

13. FRANTZ was BRASWELL's sole agent and authorized representative for purposes of providing instructions to Hemisphere regarding the management of Deleon and the Offshore Accounts.

GVI's and BRASWELL's Tax Returns

14. Every year, GVI filed U.S. Corporation Income Tax Returns that purported, among other things, to disclose the true costs that GVI had incurred in purchasing raw materials and having them manufactured into finished products that could be sold to the public. The tax returns treated these costs, known as "cost of goods sold," as deductible business expenses.

15. Every year, BRASWELL filed U.S. Individual Income Tax Returns that purported, among other things, to disclose all of the income that he had received during the applicable tax year, including all income that he had received from GBDS and GVI.
The False Expense Scheme BRASWELL's and MILLER's Use of

Deleon to Claim False Business Expenses on GVI's Corporate Income Tax Returns

16. As set forth in more detail below, between on or about December 21, 1994 and on or about June 23, 1997, BRASWELL and MILLER used Deleon's name to create false expenses on GVI's books and records. Among other things: MILLER created fictitious invoices and false expense entries on GVI's books and records; BRASWELL and MILLER caused GVI's purchasing personnel to order herbal supplements and other raw materials from the Raw Material Suppliers in Deleon's, rather than GVI's, name; and BRASWELL and MILLER caused GBDS' and GVI's accounting personnel to post fabricated expenses based on purported orders to Deleon for "nutritional supplements" and other "health care products."

17. The purpose of this conduct was to make it appear, on paper, as if Deleon was a legitimate supplier that had charged GVI millions of dollars for "nutritional supplements" and other "health care products," even though Deleon was not a supplier, was not in the business of selling products, and had not sold any products to GVI.

18. MILLER and BRASWELL caused the fabricated expenses to be reported as cost of goods sold on GVI's corporate tax, returns, thus enabling GVI to evade millions of dollars in taxes.

The Income Diversion Scheme: BRASWELL's and FRANTZ Use of the FS&G Account and the Offshore Accounts to Conceal Millions of Dollars in Income

19. As set forth in more detail below, between on or about November 30, 1993 and on or about December 23, 1997, BRASWELL caused GBDS to transfer millions of dollars to the FS&G Account and the Offshore Accounts for his own personal use, including approximately $9,944,967 that was deposited into the account in Deleon's name at the Bank of Bermuda in purported payment of the fabricated expenses that GVI appeared, on paper, to have incurred as a result of making the Deleon purchases.

20. FRANTZ failed to report the transfers as income on BRASWELL's Individual U.S. Income Tax Returns, thus enabling BRASWELL to evade millions of dollars in taxes.

COUNT ONE
[18 U.S.C. § 371)

A. PRELIMINARY ALLEGATIONS

The grand jury realleges paragraphs 1 through 20 of the General Allegations set forth above.

B. OBJECT OF THE CONSPIRACY

Beginning on or about December 21, 1994 and continuing through on or about June 23, 1997, in Los Angeles County, within the Central District of California, and elsewhere, defendants BRASWELL and MILLER did willfully and knowingly conspire and agree with each other to commit offenses against the United States, namely: to defraud the United States by impeding, impairing, obstructing, and defeating the lawful government functions of the Internal Revenue Service of the Treasury Department by deceit, craft, trickery, or means that are dishonest in the ascertainment, computation, assessment, and collection of revenue, to wit, income taxes, through the preparation and filing of federal corporate income tax returns for GVI which falsely stated that GVI had incurred cost of goods sold expenses arising from purchases from Deleon which were entirely fictitious.

C. MEANS BY WHICH THE OBJECT OF THE CONSPIRACY WAS TO BE ACCOMPLISHED

The manner and means by which the conspiracy was to be accomplished included the following:

1. BRASWELL and MILLER would cause GVI's and GBDS' purchasing personnel to order the herbal products and other raw materials that GVI was acquiring from the Raw Material Suppliers in Deleon's name (the "Deleon Purchase Orders").

2. BRASWELL would cause GVI's and GBDS' purchasing personnel to send copies of the Deleon Purchase orders to Hemisphere.

3. BRASWELL would cause Hemisphere to (a) issue bank drafts against the account in Deleon's name at the Bank of Bermuda, made payable to the Raw Material Suppliers, and (b) send the drafts to BRAS WELL

4. BRASWELL would deliver the drafts to GVI's and GBDS' purchasing personnel, in Los Angeles, so that the drafts could be delivered to the Raw Material Suppliers in payment of the Deleon Purchase Orders.

S. BRASWELL and MILLER would cause GVI's and GBDS' purchasing personnel to send MILLER summaries of the Deleon Purchase Orders that listed the names of the Suppliers, the nature and amounts of the raw materials that GVI had ordered, and the true purchase prices.

6. Based on the summaries, MILLER would prepare invoices in Deleon's name that purported to bill GVI for "nutritional supplements" and other "health care products" (the "Fraudulent Invoices").

7. The Fraudulent Invoices would purport to charge GVI from two to ten times the amounts that the Raw Material Suppliers had actually charged for the herbal products and other Raw Materials that GVI had ordered (the "Marked Up Charges").

8. MILLER and BRASWELL would cause GBDS' and GVI's accounting personnel to post the Marked Up Charges to expense accounts in GVI's general ledgers.

9. BRASWELL would periodically cause GBDS' and GVI's accounting personnel to issue checks to Deleon, care of Hemisphere, in order to pay the Fraudulent Invoices, even though: (a) GVI had not purchased any products from Deleon; and (b) the Marked Up Charges had been fabricated.

10. MILLER would prepare adjusting journal entries to GVI's general ledger in order to reclassify non-deductible transfers to Deleon that had been classified as "investments," as deductible cost of goods sold expenses.

.11. MILLER would prepare GVI's federal corporate tax returns. In preparing the returns, MILLER would include false deductions for the fabricated cost of goods sold that GVI had purportedly incurred as a result of the fictitious purchases from Deleon.

12. BRASWELL would sign the returns and cause them to be
filed with the Internal Revenue Service.

D. OVERT ACTS

In furtherance of the conspiracy and to accomplish the object of the conspiracy, the following overt acts were committed in the Central District of California and elsewhere:

1. On or about December 21, 1994, BRASWELL caused GBDS to, issue a check in the amount of $500,000 to Deleon.

2. On or about January 17, 1995, BRASWELL caused GBDS to issue a check in the amount of $600,000 to Deleon.

3. On or about January 20, 1995, BRASWELL caused GBDS to issue a check in the amount of $600,000 to Deleon.

4. On or about January 27, 1995, BRASWELL caused GBDS to issue a check in the amount of $500,000 to Deleon.

5. On or about May 24, 1995, BRASWELL caused GBDS to issue a check in the amount of $180,000 to Deleon.

6. On or before June 13, 1995, MILLER prepared an adjusting journal entry to GVI's books and records that falsely stated that during the fiscal year ending September 30, 1994, Deleon had charged GVI a "manufacturing fee," totaling $4,385,420.

7. On or before June 13, 1995, MILLER prepared an adjusting journal entry to GVI's books and records in order to reclassify $1,350,000 in assets, that previously had been recorded as an investment, as an expense.

8. On or about June 13, 1995, MILLER prepared a U.S. Corporation Income Tax Return, Form 1120, for GVI for the fiscal year ending September 30, 1994 (the "1993 Return"), which included a false deduction of approximately $5,735,410 based on fabricated cost of goods sold expenses resulting from GVI's fictitious purchases from Deleon.

9. On or about June 15, 1995, BRASWELL signed the 1993 Return on behalf of GVI.

10. On or before September 13, 1995, MILLER prepared approximately 7 invoices in the name of Deleon that purported to charge GVI approximately $1,079,710 for nutritional supplements and health care products that GVI had purportedly purchased from Deleon.

11. On or about September 13, 1995, BRASWELL caused GBDS to issue a check in the amount of $1,079,710 to Deleon.

12. On or about October 19, 1995, BRASWELL caused GBDS to issue a check in the amount of $459,800 to Deleon.

13. On or about November 1, 1995, BRASWELL caused GBDS to issue a check in the amount of $1,178,750 to Deleon.

14. On or about November 13, 1995, MILLER caused GVI to reclassify $2,200,000 of GVI's assets, that previously had been recorded as an investment, as an expense.

15. On or about November 20, 1995, BRASWELL caused GBDS to issue a check in the amount of $776,000 to Deleon.

16. On or before January 4, 1996, MILLER prepared an adjusting journal entry to GVI's general ledger that increased GVI's "inventory usage" expense account by approximately $4,671,000.

17. On or before January 4, 1996, MILLER prepared an adjusting journal entry to GVI's general ledger that decreased GVI's "inventory usage" expense account by approximately $1,868,400.

18. On or about January 17, 1996, MILLER prepared a U.S. Corporation Income Tax Return, Form 1120, for GVI for the fiscal year ending September 30, 1995 (the "1994 Return"), which included a false deduction of approximately $7,242,236 based on fabricated cost of goods sold expenses resulting from GVI's fictitious purchases from Deleon.

19. On or about January 19, 1996, BRASWELL signed the 1994 Return on behalf of GVI.

20. On or about February 9, 1996, BRASWELL caused GBDS to issue a check in the amount of $788,492.95 to Deleon

21. On or before February 14, 1996, MILLER prepared approximately 5 invoices in the name of Deleon that purported to charge GVI approximately $2,063,169.98 for "nutritional supplements" and "health care products" that GVI had purportedly purchased from Deleon.

22. On or about February 14, 1996, BRASWELL caused GBDS to issue a check in the amount of $1,274,677.03 to Deleon.

23. On or about March 6, 1997, BRASWELL caused GBDS to issue a check in the amount of $430,287 to Deleon.

24. On or about March 64 1997, BRASWELL caused GBDS to issue a check in the amount of $1,577,250.58 to Deleon.

25. On or about June 23, 1997, MILLER purchased a set of blank three-part invoices in the name of Deleon.

COUNT TWO
[26 U.S.C. § 7201]

Between on or about December 21, 1994 and on or about June 15, 1995, in Los Angeles County, in the Central District of California, defendants ALMON GLENN BRASWELL ("BRASWELL") and ROBERT BRUCE MILLER ('MILLER") did willfully attempt to evade and defeat the assessment of a substantial part of the federal corporate income taxes due and owing by Gero Vita International, Inc. ("GVI") for the fiscal year ending September 30, 1994, in the amount of approximately $1,926,762, by committing the following acts, among others: (1) on or before June 13, 1995, MILLER prepared an adjusting journal entry to GVI's books and records that falsely stated that during the fiscal year ending September 30, 1994, Deleon Global Trading Ltd. ("Deleon") had charged GVI a "manufacturing fee," totaling $4,385,420; (2) on or before June 13, 1995, MILLER prepared an adjusting journal entry to GVI's books and records in order to. reclassify approximately $1,350,000 in assets, that previously had been recorded as an investment, as an expense; (3) on or about June 13, 1995, MILLER prepared a U.S. Corporation Income Tax Return, Form 1120, for GVI for the fiscal year ending September 30, 1994 (the "1993 Return") that purported to truthfully report all of the deductible business expenses that GVI had incurred during the fiscal year; (4) on or about June 15, 1995, BRASWELL signed the 1993 Return; and (5) BRASWELL and MILLER willfully overstated the amount of the deductible business expenses that GVI had incurred by approximately $5,735,420 on the 1993 Return, resulting in an under-statement of the tax due and owing of approximately $1,926,762.

COUNT THREE
[26 U.S.C. § 7201]

Between on or about January 17, 1995 and on or about February 14, 1996, in Los Angeles County, in the Central District of California, defendants ALMON GLENN BRASWELL ("BRASWELL") and ROBERT BRUCE MILLER ("MILLER") did willfully attempt to evade and defeat the assessment of a substantial part of the federal corporate income taxes due and owing by Gero Vita International, Inc. ("GVI") for the fiscal year ending September 30, 1995, in the amount of approximately $2,541,698, by committing the following acts, among others: (1) Between on or about January 17, 1995 and on or about November 20, 1995, BRASWELL caused G.E. Data Systems, Inc. ("GBDS") to issue approximately 8 checks payable to Deleon Global Trading, Ltd. ("Deleon"), totaling approximately $5,374,260 to pay Deleon for raw materials that GVI had purportedly purchased from Deleon; (2) on or before September 13, 1995, MILLER prepared approximately 7 invoices in the name of Deleon that purported to charge GVI approximately $1,079,710 for "nutritional supplements" and "health care products" that GVI had purportedly purchased from Deleon; (3) on or about November 13, 1995, MILLER caused GVI to reclassify approximately $2,200,000 of GVI's assets, that previously had been recorded as an investment, as an expense; (4) on or before January 4, 1996, MILLER prepared an adjusting journal entry to GVI's general ledger that increased GVI's "inventory usage" expense account by approximately $4,671,000; (5) on or before January 4, 1996, MILLER prepared an adjusting journal entry to GVI's general ledger that decreased , GVI's "inventory usage" expense account by approximately $1,868,400; (6) on or about January 17, 1996, MILLER prepared a U.S. Corporation Income Tax Return, Form 1120, for GVI for the fiscal year ending September 30, 1995 (the "1994 Return"); (7) on or about January 19, 1996, BRASWELL signed the 1994 Return on behalf of GVI; (8) on or about February 9, 1996, BRASWELL caused GBDS to issue a check in the amount of approximately $788,492.95 to Deleon; (9) on or before February 14, 1996, MILLER prepared approximately 5 invoices in the name of Deleon that purported to charge GVI approximately $2,063,169.98 for "nutritional supplements." and "health care products" that GVI had purportedly purchased from Deleon; (10) on or about February 14, 1996, BRASWELL caused GBDS to issue a check in the amount of $1,274,677.03 to Deleon; and (11) BRASWELL and MILLER willfully over-stated the amount of the deductible business expenses that GVI had incurred by approximately $7,242,236 on the 1994 Return, resulting in an under-statement of the tax due and owing of approximately $2,541,698.

COUNT FOUR
[18 U.S.C. § 371]

A. PRELIMINARY ALLEGATIONS

The grand jury realleges paragraphs 1 through 20 of the General Allegations set forth above.

B. OBJECT OF THE CONSPIRACY

Beginning on or about November 30, 1993 and continuing through on or about October 15, 1998, in Los Angeles County, within the Central District of California, and elsewhere, defendants BRASWELL and FRANTZ did willfully and knowingly conspire and agree with each other to commit offenses against the United States, namely to defraud the United States by impeding, impairing, obstructing, and defeating the lawful government functions of the Internal Revenue Service of the Treasury Department by deceit, craft, trickery, or means that are dishonest in the ascertainment, computation, assessment, and collection of revenue, to wit, income taxes, through the preparation and filing of U.S. Individual Income Tax Returns for BRASWELL which would fail to report income that BRASWELL received from GBDS in the form of transfers by GBDS of corporate funds to the FS&G Account and the Offshore Accounts for BRASWELL's personal benefit.

C. MEANS BY WHICH THE OBJECT OF THE CONSPIRACY WAS TO BE ACCOMPLISHED

The manner and means by which the conspiracy was to be accomplished included the following:

1. BRASWELL would cause GBDS' and GVI's accounting personnel to transfer 'funds from GBDS' bank accounts to the FS&G Account. GBDS' and GVI's accounting personnel would record the transfers on GBDS' and the Affiliated Corporations' books and records as corporate assets or investments.

2. BRASWELL would cause GBDS' and GVI's accounting personnel to issue checks on the Royal Bank of Canada Account, payable to Deleon, care of Hemisphere. BRA.SWELL and FRANTZ would, cause Hemisphere to deposit the checks into the account in Deleon's name at the Bank of Bermuda.

3. FRANTZ would periodically cause checks to be issued from the FS&G account for BRASWELL's personal benefit, even though the account had been funded with GBDS', GVI's and the Affiliated Corporations' corporate funds.

4. FRANTZ would prepare BRASWELL's U.S. Individual Income Tax Returns. In preparing the returns, FRANTZ would fail to include the amounts that: (a) had been paid for BRASWELL's benefit from the FS&G account; and (b) had been deposited for BRASWELL'S benefit into the account in Deleon's name at the Bank of Bermuda.

5. BRASWELL would sign the returns and cause them to be filed with the Internal Revenue Service.

D. OVERT ACTS

In furtherance of the conspiracy and to accomplish the object of the conspiracy, the following overt acts were committed in the Central District of California and elsewhere:

1. On or about November 30, 1993, FRANTZ caused a check in the amount of $500,000 to be issued from the FS&G account payable to the order of "Hemisphere Trust Co." for deposit into an account in the name of Vita at the Bank of Bermuda.

2. On or about January 10, 1994, BRASWELL caused GBDS to transfer $400,000 from its Bank of America account to the FS&G account.

3. On or about January 11, 1994, BRASWELL and FRANTZ caused the name of Vita International, Ltd. to be changed to Deleon Global Trading, Ltd.

4. On or about January 18, 1994, BRASWELL caused GBDS to transfer approximately $300,000 from its Bank of America Account to the FS&G account.

5. On or about January 20, 1994, BRASWELL caused GBDS to transfer approximately $400,000 from its Bank of America Account to the FS&G account.

6. On or about January 24, 1994, FRANTZ caused a check in the amount of $500,000 to be issued from the FS&G account, payable to the Internal Revenue Service.

7. On or about January 27, 1994, BRASWELL caused GBDS to transfer approximately $300,000 from its Bank of America Account to the FS&G account.

8. On or about January 31, 1994, FRANTZ caused a check in the amount of $1,000,000 to be issued from the FS&G Account to the Bank of Butterfield for deposit into BRASWELL's personal account.

9. On or about August 25, 1994, FRANTZ caused $1,000,000 to be transferred from the FS&G account to the Bank of Butterfie1d for deposit into BRASWELL's personal account.

10. On or about December 21, 1994, BRASWELL caused GBDS to issue a check in the amount of $500,000 to Deleon.

11. On or about January 17, 1995, BRASWELL caused GBDS to issue a check in the amount of $600,000 to Deleon.

12. On or about January 20, 1995, BRASWELL caused GBDS to issue a check in the amount of $600,000 to Deleon.

13. On or about January 23, 1995, FRANTZ caused a check in the amount of $240,000 to be issued from the FS&G Account for BRASWELL's personal benefit.

14. On or about January 27, 1995, BRASWELL caused GBDS to issue a check in the amount of $500,000 to Deleon.

15. On or about May 24, 1995, BRASWELL caused GBDS to issue a check in the amount of $180,000 to Deleon.

16. On or about September 22, 1995, BRASWELL caused GBDS to transfer $500,000 to the FS&G Account.

17. On or about September 22, 1995, FRANTZ caused a check. in the amount of $400,000 to be issued from the FS&G Account for BRASWELL's personal benefit.

18. On or about September 13, 1995, BRASWELL caused GBDS to issue a check in the amount of $1,079,710 to Deleon.

19. On or about October 6, 1995, FRANTZ prepared an Individual U.S. Income Tax Return for BRASWELL for 1994 (the "1994 Return"), which failed to report approximately $6,865,000 of taxable income that BRASWELL had received in 1994.

20. On or about October 10, 1995, BRASWELL signed the 1994 Return and caused it to be filed with the Internal Revenue Service.

21. On or about October 19, 1995, BRASWELL caused GBDS to issue a check in the amount of $459,800 to Deleon.

22. On or about November 1, 1995, BRASWELL caused GBDS to issue a check in the amount of $1,178,750 to Deleon.

23. On or about November 20, 1995, BRASWELL caused GBDS to issue a check in the amount of $776,000 to Deleon.

24. On or about January 10, 1996, BRASWELL caused GBDS to transfer $700,000 to the FS&G Account.

25. On or about January 22, 1996, FRANTZ caused a check in the amount of $750,000 to be issued from the FS&G Account for BRASWELL's personal benefit.

26. On or about February 9, 1996, BRASWELL caused GBDS to issue a check in the amount of $788,492.95 to Deleon.

27. On or about February 14, 1996, BRASWELL caused GBDS to issue a check in the amount of $1,274,677.03 to Deleon.

28. On or about October 15, 1996, FRANTZ prepared an Individual U.S. Income Tax Return for BRASWELL for 1995 (the "1995 Return"), which failed to report approximately $6,817,603 of taxable income that BRASWELL had received in 1995.

29. On or about October 15, 1996, FRANTZ signed the 1995 Return on BRASWELL's behalf and caused it to be filed with the Internal Revenue Service.

30. On or about March 6, 1997, BRASWELL caused GBDS to issue a check in the amount of $430,287 to Deleon.

31. On or about March 6, 1997, BRASWELL caused GBDS to issue a check in the amount of $1,577,250.58 to Deleon.

32. On or about April 11, 1997, BRASWELL caused GBDS to issue a check in the amount of $500,000 to the FS&G Account.

33. On or about May 2, 1997, FRANTZ caused a check in the amount of $450,000 to be issued from the FS&G Account for BRASWELL's personal benefit.

34. On about October 9, 1997 FRANTZ caused an individual at FS&G to sign a U.S. Individual Income Tax Return for BRASWELL for 1996 (the "1996 Return"), which failed to report approximately. $4,223,170 of taxable income that BRASWELL had received in 1996.

35. On or about October 10, 1997, BRASWELL signed the 1996 Return and caused it to be filed with the Internal Revenue Service.

36. On or before November 4, 1997, BRASWELL used approximately $3,500,000 that had been deposited into the account in Deleon's name at the Bank of Bermuda, to purchase a personal residence in Coconut Grove, Florida.

37. On or about March 19, 1998, FRANTZ told an Internal Revenue Service International Examiner that BRASWELL did not own Deleon and that he (FRANTZ) had not been able to obtain written information from Hemisphere regarding Deleon's ownership.

38. On or about October 10, 1998, FRANTZ prepared an Individual U.S. Income Tax Return for BRASWELL for 1997 (the "1997 Return"), which failed to report approximately $4,332,537 of taxable income that BRASWELL had received in 1997.

39. On or about October 15, 1998, BRASWELL signed the 1997 Return and caused it to be filed with the Internal Revenue Service.

COUNT FIVE
[26 U.S.C. § 7201]

Between on or about January 7, 1994 and on or about December 4, 1994, in Los Angeles County, in the Central District of California, and elsewhere, defendants ALMON GLENN BRASWELL ("BRASWELL") arid WILLIAM E. FRANTZ ("FRANTZ") did willfully attempt to evade and defeat the assessment of a substantial part of the federal individual income taxes due and owing by BRASWELL for 1994, in the amount of approximately $2,865,992 by committing the following acts, among others: (1) between January 10, 1994 and September 30, 1994, BRASWELL caused G.B. Data Systems, Inc. ("GBDS") to transfer-approximately $7,300,000 to an account in the name of Frantz, Sanders & Grattan, LLP (the "FS&G Account"); (2) between January 7, 1994 and August 25, 1994, FRANTZ caused approximately $5,000,000 to be transferred from the FS&G account to BRASWELL's personal account at the Bank of Butterfield, in the Cayman Islands; (3) Between January 15, 1994 and December 4, 1994, FRANTZ caused checks totaling approximately $1,195,000 to be issued from the FS&G Account to the Internal Revenue Service, to be applied to BRASWELL's personal tax liability; (4) on or about December 21, 1994, BRASWELL caused GBDS to issue a check in the amount of $500,000 on GBDS' account at the Royal Bank of Canada to Deleon, care of Hemisphere Management Co.; (6) on or about October 6, 1995, FRANTZ prepared an Individual U.S. Income Tax Return for BRASWELL for 19.94 (the "1994 Return") that failed to report or include in BRASWELL's taxable income the amounts that had been paid to the Internal Revenue Service, Deleon and the Bank of Butterfield; (7) On or about October 10, 1995, BRASWELL signed the 1994 Return and caused it to be filed with the Internal Revenue Service; and (8) BRASWELL and FRANTZ willfully under-stated BRASWELL's taxable income on the 1994 Return by approximately $6,865,000, the amounts set forth above that had been paid to the Internal Revenue Service, Deleon and the Bank of Butterfield, resulting in an under-statement of the tax due and owing of approximately $2,865,992.

COUNT SIX
[26 U.S.C. § 7201)

Between on or about January 17, 1995 and on or about October 15, 1996, in Los Angeles County, in the Central District of California, and elsewhere, defendants ALMON GLENN BRASWELL ("BRASWELL") and WILLIAM E. FRANTZ ("FRANTZ") did willfully attempt to evade and defeat the assessment of a substantial part of the federal individual income taxes due and owing by BRASWELL for 1995, in the amount of approximately $2,846,204, by committing the following acts, among others: (1) Between on or about January 17, 1995 and on or about November 20, 1995, BRASWELL caused approximately $5,374,260 to be transferred from an account in the name of G.B. Data Systems, Inc. ("GBDS") at the Royal Bank of Canada to an account in the name of Deleon Global Trading, Ltd. at the Bank of Bermuda, in Hamilton, Bermuda ) (the "1995 Deleon Deposits"); (2) between on or about March 28, 1995 and on or about September 22, 1995, BRASWELL caused GBDS to transfer approximately $2,050,000 to an account in the name of Frantz, Sanders & Grattan, LLP (the "FS&G Account"); (3) between on or about January 23, 1995 and on or about October 23, 1995, FRANTZ caused checks totaling approximately $1,443,343 to be issued from the FS&G Account to the Internal Revenue Service, to be applied to BRA.SWELL's personal tax liability (the "1995 Transferred Funds"); (4) on or about October 15, 1996 FRANTZ prepared an Individual U.S. Income Tax Return for BRASWELL for 1995 (the "1995 Return") that failed to report the 1995 Deleon Deposits or the 1995 Transferred Funds or to include them in BRASWELL's taxable income; (5) on or about October 15, 1996, FRANTZ signed the 1995 Return on BRASWELL's behalf and caused it to be filed with the Internal Revenue Service; (6) BRASWELL and FRANTZ willfully under-stated BRASWELL's taxable income on the 1995 Return by approximately $6,817,603, the amounts of the 1995 Transferred Funds and the 1995 Deleon Deposits, resulting in an under-statement of the tax due and owing of approximately $2,846,204.

COUNT SEVEN
[26 U.S.C. § 72011

Between on or about February 9, 1996 and on or about October 10, 1997, in Los Angeles County, in the Central District of California, and elsewhere, defendants ALMON GLENN BRASWELL ("BRASWELL") and WILLIAM E. FRANTZ ("FRANTZ") did willfully attempt to evade and defeat the assessment of a substantial part of the federal individual income taxes due and owing by BRASWELL for 1996, in the amount of approximately $1,763,083, by committing the following acts, among others: (1) Between on or about February 9, 1996 and February 14, 1996, BRASWELL caused approximately $2,063,169.98 to be transferred from an account in the name of G.B. Data Systems, Inc. ("GBDS") at the Royal Bank of Canada to an account in the name of Deleon Global Trading Ltd. ("Deleon")at the Bank of Bermuda, in Hamilton, Bermuda (the "1996 Deleon Deposits"); (2) between on or about January 10, 1996 and on or about June 28, 1996, BRASWELL caused GBDS to transfer approximately $3,300,000 to an account in the name of Frantz, Sanders & Grattan, LLP (the "FS&G Account"); (3) Between on or about January 22, 1996 and on or about September 20, 1996, FRANTZ caused checks totaling approximately $2,160,000 to be issued from the FS&G Account to the Internal Revenue Service to be applied to BRASWELL's personal tax liability and to an account in BRASWELL's name at the Bank of Butterfield in the Cayman Islands (the "1996 Transferred Funds"); (4) on or about October 9, 1997 FRANTZ caused an Individual U.S. Income Tax Return for BRASWELL for 1996 (the "1996 Return") to be prepared by another individual at FRANTZ' law firm, that failed to report the 1996 Deleon Deposits or the 1996 Transferred Funds or include them in BRASWELL's taxable income; (5) on or about October 10, 1997, BRASWELL signed the 1996 Return and caused it to be filed with the Internal Revenue Service; (6) BRASWELL and FRANTZ willfully under-stated BRASWELL's taxable income on the 1996 Return by approximately $4,223,170, the amounts of the 1996 Transferred Funds and the 1996 Deleon Deposits, resulting in an under-statement of the tax due and owing of approximately $1,763,083.

COUNT EIGHT
[26 U.S.C. § 72011

Between on or about March 6, 1997 and on or about October 15, 1998, in Los Angeles County, in the Central District of California, and elsewhere, defendants ALMON GLENN BRASWELL ("BRASWELL") and WILLIAM E. FRANTZ ("FRANTZ") did willfully attempt to evade and defeat the assessment of a substantial part of the federal individual income taxes due and owing by BRASWELL for 1997, in the amount of approximately $1,808,743, by committing the following acts, among others: (1) on or about March 6, 1997 BRASWELL caused approximately $2,007,537.58 to be transferred from an account in the name of G.B. Data Systems, Inc. ("GBDS") at the Royal Bank of Canada to an account in the name of Deleon Global Trading, Ltd. ("Deleon") at the Bank of Bermuda, in Hamilton, Bermuda (the "1997 Deleon Deposits"); (2) between on or about April 11, 1997 and on or about December 4, 1997, BRASWELL caused GBDS to transfer approximately $1,600,000 to an account in the name of Frantz, Sanders & Grattan, LLP (the "FS&G Account"); (3) Between on or about January 24, 1997 and December 23, 1997, FRANTZ caused checks totaling approximately $2,325,000 to be issued from the FS&G Account to the Internal Revenue Service, to be applied to BRASWELL's personal tax liability (the "1997 Transferred Funds"); (4) on or about October 10, 1998, FRANTZ prepared an Individual U.S. Income Tax Return for BRASWELL for 1997 (the "1997 Return") that failed to report the 1997 Deleon Deposits or the 1997 Transferred Funds or include them in BRASWELL's taxable income; (5) on or about October 15,

1998, BRASWELL signed the 1997 Return and caused it to be filed with the Internal Revenue Service; (6) BRASWELL and FRANTZ willfully under-stated BRASWELL's taxable income on the 1997 Return by approximately $4,332,537.58 the amounts of the 1997 Transferred Funds and the 1997 Deleon Deposits, resulting in an under-statement of the tax due and owing of approximately $1,808,743.

COUNT NINE
[26 U.S.C. § 7206(1)]

On or about June 15, 1995, in Los Angeles County, within the Central District of California, defendant ALMON GLENN BRASWELL ("BRASWELL"), did willfully make and subscribe to a United States Corporation Income Tax Return, Form 1120, of Gero Vita International, Inc. ("GVI") for the fiscal year ending September 30, 1994, which was verified by a written declaration that it was made under the penalties of perjury and was filed with the Internal Revenue Service and which he did not believe to be true and correct as to every material matter contained therein, in that the tax return reported that GVI had incurred cost of goods sold of $12,159,617, whereas, as BRASWELL then well knew and. believed, the reported cost of goods sold figure included substantial amounts that GVI neither paid nor incurred in the fiscal year ending September 30, 1994.

COUNT TEN
[26 U.S.C. § 7206(1)]

On or about January 19, 1996, in Los Angeles County, within the Central District of California, defendant ALMON GLENN BRASWELL ("BRASWELL") did willfully make and subscribe to a United States Corporation Income Tax Return, Form 1120, of Gero Vita International, Inc. ("GVI") for the fiscal year ending September 30, 1995, which was verified by a written declaration that it was made under the penalties of perjury and was filed with the Internal Revenue Service and which he did not believe to be true and correct as to every material matter contained therein, in that the tax return reported that GVI had incurred cost of goods sold of $19,416,456, whereas, as BRASWELL then well knew and believed, the reported cost of goods sold figure included substantial amounts that GVI neither paid nor incurred in the fiscal year ending September 30, 1995.

COUNT ELEVEN
[26 U.S.C. § 7206(1)]

On or about October 10, 1995, in Los Angeles County, within the Central District of California, defendant ALMON GLENN BRASWELL ("BRASWELL") did willfully make and subscribe to a United States Income Tax Return, Form 1040, for the taxable year 1994, which was verified by a written declaration that it was made under the penalties of perjury and was filed with the Internal Revenue Service and which he did not believe to be true and correct as to every material matter contained therein, in that the tax return reported that BRASWELL's total income for 1994 was $3,187,177, whereas, as BRASWELL then well knew and believed, the reported total income figure did not include income that BRASWELL received in 1994, by causing one of his corporations, G.E. Data Systems, Inc., to transfer funds to an attorney escrow account and offshore accounts for BRASWELL's personal benefit.

COUNT TWELVE
[26 U.S.C. § 7206(1)]

On or about October 10, 1997, in Los Angeles County, within the Central District of California, defendant ALMON GLENN BRASWELL ("BRASWELL") did willfully make and subscribe to a United States Income Tax Return, Form 1040, for the taxable year 1996, which was verified by a written declaration that it was made under the penalties of perjury and was filed with the Internal Revenue Service and which he did not believe to be true and correct as to every material matter contained therein, in that the tax return reported that BRASWELL's total income for 1996 was $4,887,992, whereas, as BRASWELL then well knew and believed, the reported total income figure did not include income that BRASWELL received in 1996 by causing one of his corporations, G.B. Data Systems, Inc., to transfer funds to an attorney escrow account and offshore accounts for BRASWELL'S personal benefit.

COUNT THIRTEEN
[26 U.S.C. § 7206(1)]

On or about October 15, 1998, in Los Angeles County, within the Central District of California,. defendant ALMON GLENN BRASWELL ("BRASWELL") did willfully make and subscribe to a United States Income Tax Return, Form 1040, for the taxable year 1997, which was verified by a written declaration that it was made under the penalties of perjury and was filed with the Internal Revenue Service and which he did not believe to be true and correct as to every material matter contained therein, in that the tax return reported that BRASWELL'S total income for 1997 was $15,991,288, whereas, as BRASWELL then well knew and believed, the reported total income figure did not include income that BRASWELL received in 1997 by causing one of his corporations, G.B. Data Systems, Inc., to transfer funds to an attorney escrow account and offshore accounts for BRASWELL's personal benefit.

A TRUE BILL

_______________________
Foreperson
 
DEBRA W. YANG
United States Attorney
 
JACQUELINE CHOOLJIAN
Assistant United States Attorney
Chief, Criminal Division
 
LAWRENCE MIDDLETON
Assistant United States Attorney
Chief, Public Corruption and
Government Fraud Section

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This page was revised on May 29, 2003.