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Profissional Documentos
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INFORMATION
18 U.S.C. S 371
- Conspiracy to Use an
Defendant.
18 U.S.C. S 371
United States
1.
The defendants and their coconspirators owned, controlled, and/or managed the
of Portland, Oregon:
2.
The defendants and their coconspirators also owned, controlled, and/or managed a
restaurant called Pelican Buy, located in the same cluster of businesses as Sugar
Shack, Peek-A-Boos, and Video Visions.
3.
The defendants and their coconspirators owned and operated the businesses through a
Corporation
Pop-A-Top Pub,
Inc.
Ltd.
Gumptions,
Utilize,
4.
Dillingers pub
The Oh! Zone
Sugar Shack
Sugar Shack Too
Peek-A-Boos
Ltd.
Inc.
Inc.
Briney Deep,
Ltd.
Video Visions
Video Visions Plus
Tommy's
Tommy,s Too
Pelican Bay Restaurant
The defendants and their coconspirators attracted customers to the strip clubs
by
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5.
Many of the businesses had small rooms on their premises. These rooms, called
private show rooms (or just show rooms) were typically fumished with a small couch,
achait, a table, and a device for playing music. Collectively, the businesses had l9
private show rooms on their premises.
6.
The defendants placed and operated automated teller machines ("ATMs") in many
of
The IRS is an agency of the United States Department of Treasury responsible for
administering and enforcing the tax laws of the United States and collecting taxes
owed to the United States Treasury.
COUNT ONE
[18 U.S.C. S 371- Conspiracy to Use an Interstate Facility to Promote or
Facilitate Prostitution Offenses]
1.
confederate, and agree with other persons, both known and unknowr to the Grand
Jury, to carry out the following object in furtherance of the conspiracy:
INFORMATION
Page 3
Or. Rev. Stat. section 167.012),inviolationof Title 18, United States Code, Section
tes2(a)(3).
3.
DEfENdANtS
their coconspirators carried out their conspiracy using the following manner and
means, among others:
The strippers would perform 30-minute "private shows" for customers in the
private show rooms, which the defendants and their coconspirator maintained
for this purpose. To obtain a "private show" a customer had to pay at least
$160.
c.
All
customers paid for private shows in cash. Many customers obtained some
or all of that cash from ATM machines on the premises. The defendants and
their coconspirators knew and intended that customers regularly use cash from
the
d.
of the minimum $160 customers paid for "private shows,,, $60 went to .,the
house," meaning these funds went to the defendants and their coconspirators.
The strippers retained the remainder of the fees paid for the "private shows.,,
INFORMATION
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e.
The private shows purportedly involved a stripper performing nude dances for
the customer ffid, at most, the stripper and the customer masfurbating
ATMs.
of
f.
Some of the strip clubs did not have private show rooms on their premises.
Strippers who were working at these strip clubs would walk with their
customers to one of the nearby businesses that had private show rooms. For
instance, the Landing Strip did not have private show rooms so strippers
working there would walk their customers across a parking lot to The OH!
Zone, which had on its premises four private show rooms and a small entry
atea.
g. To conseal
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Page 5
KfI{D!".
OVERT ACTS IN FIIRTIIERANCE OF THE CONSPIRACY
4.
DEfENdANtS
their coconspirators committed the following overt acts, among others, in the District
of Oregon and elsewhere, in furtherance of the conspiracy and to effect the object of
the conspiracy:
a.
The defendants and their coconspirators regularly refilled the ATMs with
proceeds from the operation of the businesses, each such
refilling being
b.
c. The defendants
d.
private show during which a stripper would perform one or more acts of
prostifution on the customer to pay $60 to "the house" as a fee for use of the
private show room, the collection of each such $60 payment being a separate
overt act.
INFORMATION
Page 6
e.
S 371.
COUNT TWO
[18
u.s.c.
S 371 -
Count
of
1. Beginning before January 1, 2008 and continuing up to and including June 16,2010,
within the District of Oregon, and elsewhere, defendants GILBERT "MACE,,
DESMARAIS and KANDACE DESMARAIS and others known and unknown to the
grand
together to defraud the United States by deceitful and dishonest means by impeding,
impairing, obstructing, and defeating the lawful government functions of the IRS, an
agency of the United States, in the ascertainment, computation, assessment, and
collection of revenue, that is, federal individual income taxes, corporate ta:res, and
payroll taxes.
2. DEfENdANtS GILBERT..MACE,,DESMARAIS
and
others, known and unknown to the grand jury, carried out their conspiracy using the
INFORMATION
pageT
The defendants and their coconspirators established a "cash only" policy at the
businesses, in part to prevent the IRS from calculating the correct amount
of gross
receipts for each business and to facilitate the "skimming" of large amounts
of
cash.
b.
c.
including the total amount of cash derived from private shows and dancer stage
fees.
d. The defendants
of the accumulated cash receipts of the businesses to the home of one of the
coconspirators.
e.
The defendants and their coconspirators used or caused the use of the cash
receipts of the businesses to make cash payments for most expenses associated
with the daily operation of the businesses, including payroll, to, in part, prevent
the IRS from calculating the correct amount of gross receipts for each business
and the payroll taxes owed by the businesses.
f.
The defendants and their coconspirators each year gave a taxrefurn preparer
false
information about the amounts of receipts and payroll expenses of the businesses,
concealed from the tax return preparer all information about the cash
receipts
from private shows and dancer stage fees, and provided false information about
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Page 8
the number and identities of the employees of the businesses, intending the tax
return preparer would use this false information to prepare corporate, payroll,
and
individual tax refurns that would underreport the amount of gross income and
taxable income of, and tax due from, the businesses and the coconspirators.
g.
The defendants and their coconspirators regularly used unreported cash receipts
h.
i.
The defendants and their coconspirators created and used a group of corporations
to own and operate the businesses but in reality to conceal from the IRS the true
ownership and control of the businesses and to assist in the concealment and
j.
3.
In furtherance of said conspiracy and to effect the objects thereof between January
1,
DESMARAIS and KANDACE DESMARAIS, and others known and unknown to the
grand
jury, committed the following overt acts, among others, in the District
of
INFORMATION
Page 9
The defendants and their coconspirators destroyed daily records of the receipts
of
the businesses and directed and/or caused others to destroy daily records of the
receipts of the business, each such destruction of records being a separate overt
act.
b.
Each tax year, the defendants and their coconspirators gave a paid tax refurn
preparer false information about the receipts of the businesses, each such
occurrence being a separate overt act.
c.
For tax years 2006,2007, and 2008, the defendants and their coconspirators filed
federal corporation tax returns, federal individual income ta>r returns, and federal
payroll tax returns that, with respect to the corporation tax returns, substantially
underreported the receipts of businesses the corporations purportedly owned and
operated, with respect to the individual income
underreported income derived from the businesses, and with respect to the payroll
tax retums substantially understated the payroll taxes due, the filing of each such
false tax refurn being a separate overt act.
S 371.
Respectfully submitted,
BILLY
J.
V/ILLIAMS
SETH D.
t Uni
INFORMATION