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Date: 07-24-2021
Case Style:
Case Number: 1:20-cr-00744-RBK
Judge: Robert B. Kugler
Court: United States District Court for the District of New Jersey (Warren County)
Plaintiff's Attorney: United States Attorney’s Office
Defendant's Attorney:
Description: Camden, New Jersey criminal defense lawyer represented Defendant charged with conspiracy to defraud the United States.
John Barry Jr., of Pemberton, and his co-conspirators falsely represented to clients that they could extinguish their outstanding mortgage debts by obtaining tax refunds. To carry out the scheme, Barry and his co-conspirators filed forms with the IRS that fraudulently claimed that financial institutions had withheld and paid over to the IRS substantial taxes on behalf of Barry’s clients, even though no such payments had occurred. Barry then directed clients to file false tax returns that claimed significant refunds based upon the bogus tax withholdings. These false withholding claims caused the IRS to issue more than $3 million in refunds to clients. Barry typically charged each client a fee of between 20 and 35 percent of the refund the client obtained, and then split fees with some co-conspirators.
In addition to his participation in the “mortgage recovery scheme,” Barry did not file his own 2016 return despite earning income in excess of filing threshold, nor did Barry report or pay taxes on the income generated from the scheme in that tax year.
Barry is scheduled to be sentenced on December 1 and faces a maximum penalty of five years’ imprisonment for conspiracy to defraud the IRS, three years’ imprisonment for each count of aiding and assisting the filing of false tax returns, three years’ imprisonment for obstructing the internal revenue laws, and one year of imprisonment for failing to file a tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigations investigated the case.
Trial Attorneys Sean M. Green and Samuel B. Bean of the Justice Department’s Tax Division are prosecuting the case.
18:371 CONSPIRACY TO DEFRAUD THE UNITED STATES (DOO 3/2015 THRU 2016)
(1)
26:7206(2) AIDING AND ASSISTING FALSE TAX RETURNS (DOO 4/4/2015 THRU 12/30/2015)
(2-4)
26:7206(2) AIDING AND ASSISTING FALSE TAX RETURNS (DOO 4/4/2015 THRU 12/30/2015)
(6-12)
26:7212(a) CORRUPTLY ENDEAVORING TO OBSTRUCT THE IRS (DOO 2016)
(13)
26:7203 FAILURE TO FILE INCOME TAX RETURN (DOO 2016)
(14)
Outcome: 07/23/2021 66 Minute Entry for proceedings held before Judge Robert B. Kugler: Jury Trial as to JOHN W. BARRY, JR. completed on 7/23/2021. Trial w/jury continued before the Honorable Robert B. Kugler. Ordered lunch to be provided to 13 jurors at government expense. Jury present. Jury returned to resume deliberations at 9:00AM. Jury Note (Exh. C-3) filed. Jury returned to Court for instruction on Jury Note (Exh. C-3). Jury retired to resume deliberations at 11:45AM. Jury returned with verdict at 12:10PM. VERDICT: Guilty Counts 1-4. Not Guilty Count 5 Guilty Counts 6-14. Ordered jury polled. Jury polled. Ordered jury discharged; jury discharged. Ordered sentencing hearing set for December 1, 2021 at 10:00AM in Courtroom 4D. Hearing on Government motion to revoke bail. Ordered motion granted. Ordered defendant remanded to the custody of the United States Marshals Service. (Court Reporter: Carl Nami, Jr.) (js) (Entered: 07/23/2021)
07/23/2021 67 Jury Note C-2 as to JOHN W. BARRY, JR. (Unredacted). (js) (Entered: 07/23/2021)
07/23/2021 68 Jury Note C-2 as to JOHN W. BARRY, JR. (Redacted). (js) (Entered: 07/23/2021)
07/23/2021 69 Jury Note C-3 as to JOHN W. BARRY, JR. (Unredacted). (js) (Entered: 07/23/2021)
07/23/2021 70 Jury Note C-3 as to JOHN W. BARRY, JR. (Redacted). (js) (Entered: 07/23/2021)
07/23/2021 71 JURY VERDICT (Unredacted). (js) (Entered: 07/23/2021)
07/23/2021 72 JURY VERDICT as to JOHN W. BARRY JR. (1) Guilty on Counts 1,2-4,6-12,13,14; JOHN W. BARRY JR. (1) Not Guilty on Count 5 (Redacted). (js) (Entered: 07/23/2021)
Plaintiff's Experts:
Defendant's Experts:
Comments: