Operation Fraud Street Mafia
According to court documents, Thomas was the head of a drug trafficking organization (DTO) that was responsible for the shipment of large quantities of methamphetamine to Hawaii, Oklahoma, Alabama, New Jersey, and elsewhere, as well as the smuggling of fentanyl into Kern Valley State Prison.
The investigation began after DEA agents identified Thomas as a source of methamphetamine supply in Hawaii. Subsequent recorded negotiations with Thomas resulted in the seizure in Oahu, Hawaii, of more than 90 pounds of methamphetamine. These seizures became the basis for the initiation of the wiretap investigation into multiple contraband cellphones in Thomas’s possession at KVSP.
The wiretap investigation revealed that Thomas orchestrated the interstate shipment of more than 54 pounds of methamphetamine to other states, including Oklahoma, Alabama, and New Jersey. Thomas was assisted by other gang associates. In addition, wire intercepts led to the seizure of an additional 40 pounds of methamphetamine, over 14 pounds of fentanyl, 9.5 pounds of heroin, and 8.5 pounds of cocaine. A half a pound of fentanyl was seized after it was smuggled into KVSP at Thomas’s direction.
Charged with Thomas in the drug trafficking scheme are Justin Damonte Mitchell, 31, of Los Angeles; Derrick D. Charles, 41, a former inmate at KVSP; Natasha Michelle Bailey, 44, of Bakersfield; Antrell Maeshack Sr., 41, of Santa Clarita; and Marie Joo-Yeon Choi, 29, of Los Angeles.
The IRS Employee Retention Credits Scheme
According to court documents, from January 2022 through at least July 2023, Thomas led a multi-million-dollar tax refund fraud scheme whereby Thomas and his co-conspirators filed payroll tax returns with the IRS that claimed Employee Retention Credits (ERC) for businesses that were not entitled to receive the credits so that they would receive large tax refunds.
Others charged with Thomas in the ERC scheme are Thomas’s mother, Kettisha Thompson-Dozier, 55, and her spouse Charmane Dozier, 44, both of Waldorf, Maryland, and Sharon Vance, 36, of Hawthorne, California.
During the COVID-19 pandemic, the ERC became available as a refundable federal tax credit for employers as a way to encourage businesses to keep employees on their payrolls. The credit was available to eligible employers that paid wages to some or all employees during the pandemic.
IRS records show Thomas and his co-conspirators filed hundreds of payroll tax returns that claimed over $550 million in tax refunds. The payroll tax returns were for fake business entities, actual businesses with overstated wages and numbers of employees, and businesses that were defunct at the time the payroll tax returns were filed. The defendants used the proceeds for improper personal expenditures. For example, in December 2022, Thomas celebrated his birthday by paying for his family members and friends to be driven to Las Vegas from Los Angeles, party for the night at a luxury penthouse, and then fly back to Los Angeles on a private jet.
http://www.justice.gov/usao-edca/pr...QAQ&usg=AOvVaw0Vanv04HgdVoXel9IwqfHP
