Kristen Petersen Morrison, 44, pleaded guilty today to four counts of wire fraud, after being charged with defrauding customers of her former employer, Century II, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
Morrison was indicted by a federal grand jury on November 30, 2016.
According to the charging document and plea agreement, Century II handles payroll and other human resource needs for small businesses in middle Tennessee. Morrison worked as a payroll specialist with Century II and set up payroll disbursements for Century II customers, including Absolute Wireless, a Nashville-based cell phone service retailer.
From March 2014 to May 2016, Morrison added several former and nonexistent employees to the Absolute Wireless payroll without the company’s knowledge or consent. She also arranged for payments to these fictitious employees to be made to check cards that Morrison set up and controlled. Morrison then used the check cards to pay for her personal expenses. During the two-year scheme, Morrison stole approximately $300,000 from Absolute Wireless.
Wire fraud carries a maximum penalty of up to 20 years in prison and a $250,000 fine. Morrison will be sentenced by United States District Judge Aleta Trauger on October 6, 2017. Her sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Henry C. Leventis.
Paul Gratton, 50, of Murfreesboro, Tenn., was found guilty today by a federal jury of delivering of a firearm to a common carrier without written notice; illegal shipment of a firearm with intent to commit a felony; illegal importation of a firearm; illegal receipt of a firearm that had been imported; and unlawful possession of unregistered silencers, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee. The jury acquitted Gratton of tampering with evidence.
The jury returned its verdict following a two-day trial before Chief U.S. District Judge Kevin H. Sharp.
The evidence at trial showed that, in the spring of 2015, Gratton, who owns a helicopter servicing business in Murfreesboro, traveled to England, where he purchased six firearm silencers, none of which had serial numbers, from a firearms dealer in Sheffield. Gratton put some of the silencer parts into a DHL package, which he deliberately mislabeled in order to ensure that those silencers got through U.S. Customs without being discovered by the authorities. Gratton put other silencer parts into his checked baggage, and flew back to Murfreesboro. Federal law enforcement officers later obtained a search warrant for Gratton’s residence, where they recovered the silencers and obtained a confession from Gratton.
Gratton faces a maximum penalty of 10 years in prison and a maximum fine of $250,000. A sentencing date has not yet been set.
The case was investigated by the Bureau of Alcohol, Tobacco Firearms & Explosives; the Rutherford County Sheriff’s Office; and the Murfreesboro Police Department. The case was prosecuted by Assistant U.S. Attorneys Ben Schrader and Ahmed Safeeullah.
WASHINGTON – The Justice Department today presented James Shaw Jr. of Nashville, Tennessee, the Special Courage Award during the annual National Crime Victims’ Service Awards ceremony in Washington, D.C. This honor is awarded to victims or survivors who exhibit exceptional perseverance and determination in dealing with his or her own victimization, or who acted bravely to prevent victimization.
“Risking his own life, Mr. Shaw acted swiftly and bravely after a gunman killed four people early one morning at a diner, saving the lives of many others. He then followed up his courageous action by delivering comfort and aid to wounded and traumatized victims,” said Attorney General William P. Barr. “None of us knows how we would react in such a dangerous situation, but we can all be inspired by Mr. Shaw’s selflessness.”
On April 22, 2018, Shaw, an electrical technician, was eating at a restaurant when a gunman opened fire on the patrons. Despite being grazed by a bullet, a Nashville police spokesman said “Mr. Shaw saved, obviously, many lives in his heroic action.” Later, he visited wounded victims in the hospital and helped support them in their recovery.
“The trauma of those who experience a violent crime is deep and real, and their restoration to physical and emotional health can be long and difficult,” said Office of Justice Programs Principal Deputy Assistant Attorney General Matt M. Dummermuth. “But Mr. Shaw encourages us as individuals and as a nation to strive to meet the needs of those struggling in the aftermath of crime.”
The Department’s Office for Victims of Crime, a component of OJP, leads communities across the country in observing National Crime Victims’ Rights Week and hosts an annual award ceremony. President Reagan proclaimed the first Victims’ Rights Week in 1981, calling for greater sensitivity to the rights and needs of victims. This year’s observance takes place April 7-13, with the theme “Honoring Our Past. Creating Hope for the Future.”
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Matt M. Dummermuth, provides federal leadership, grants and resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
NASHVILLE – A Clarksville, Tennessee, business owner pleaded guilty today in U.S. District Court to a single count of tax evasion, announced U.S. Attorney Mark Wildasin for the Middle District of Tennessee.
Andrew Huy Nguyen, 54, the owner of Call it Pho restaurant and Venus Nails Spa, both located in Clarksville, Tennessee, admitted responsibility for a tax loss of more than $428,000.
Nguyen was charged on March 3, 2022, in a criminal Information, which alleged that Nyugen, as the owner of Call it Pho, willfully evaded his responsibility to pay his employer’s share of employment taxes to the IRS by underreporting the wages he paid his Call it Pho employees. He hid from the IRS the true amount of wages he paid his Call it Pho employees by failing to issue some employees W2 Forms, by paying some employees solely in cash, and by paying some employees a combination of 50% check and 50% cash. Nyugen took numerous steps to conceal from the IRS the true amount of wages he paid to his employees, including preparing and issuing 1099 Forms instead of W2 Forms to disguise the wages paid to employees as “nonemployee compensation.” He further disguised the wages by issuing 1099 Forms that falsely made it appear as though those employees worked at another business that he owned, Venus Nails Spa.
For tax years 2017, 2018, and 2019, Nyugen evaded more than $34,000 of the employer’s employment taxes related to Call it Pho.
In addition, Nguyen willfully failed to withhold and pay over to the IRS approximately $78,667 in employment taxes and federal income taxes from his employees’ paychecks at Call it Pho.
Nyugen also issued false 1099 Forms to nail technicians employed at Venus Nails Spa that did not report all the wages he paid them. Nguyen paid Venus employees at least $946,716.24 in cash, which he did not report on the 1099 Forms that he issued to them. This caused his employees to file false tax returns that did not report all their income, which resulted in an additional tax loss of approximately $315,856.
Nguyen faces up to five years in prison and a $250,000 fine when he is sentenced on September 23, 2022. Nguyen has agreed to pay immediate restitution in the amount of $428,620.12.
This case was investigated by IRS-Criminal Investigation. Assistant U.S. Attorney Kathryn W. Booth is prosecuting the case.