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Date: 02-17-2023
Case Style:
United States of America v. Thanh Rudin and Seir Havana
Case Number: 1:22-cr-116
Judge: Anthony J. Trenga
Court: United States District Court for the Eastern District of Virginia (Fairfax County)
Plaintiff's Attorney: United States Attorney’s Office in Alexandria
Defendant's Attorney:
Description: Alexandria, Virginia criminal defense lawyer represented Defendants charged with conspiracy to defraud the Internal Revenue Service (IRS) and the Paycheck Protection Program (PPP), a federal loans initiative designed to help businesses pay their employees and meet expenses during the COVID-19 pandemic.
Thanh Rudin, 58, was a principal of Mana Tax Services, a tax preparation business in the Los Angeles area. His coconspirator, Seir Havana, 46, was the company’s Vice President/Director and Chief Executive Officer. The defendants engaged in two fraud schemes using Mana tax. First, they prepared and filed with the IRS a series of false income tax returns on behalf of at least nine professional athletes. The false tax returns reported fictitious business and personal losses to generate refunds the athletes were not entitled to receive. They also filed amended tax returns for most of the athletes for prior years to correct what conspirators falsely characterized as “errors” made by their previous accountants. Mana Tax charged the athletes a fee of 30% of the resulting refunds issued by the IRS. The tax fraud scheme caused a total tax loss of more than $19 million.
Second, the defendants prepared and submitted false applications for PPP loans on behalf of small businesses, shell companies, and other business entities they controlled. The co-conspirators prepared fraudulent PPP loan applications for these firms in exchange for a fee of 30% of the resulting loan. The co-conspirators submitted fabricated tax returns to support the PPP loan applications, and some of the business owners never saw their loan applications before Mana Tax filed them. To obtain fraudulent PPP loans, the co-conspirators grossly inflated the number of employees and monthly payroll costs claimed on the applications. Some of the businesses were not eligible for any PPP loan funds at all because they did not have any payroll expenses.
During the investigation, the government seized more than $11.8 million from bank accounts containing PPP loan fraud proceeds controlled by the conspirators. In addition, Havana surrendered cashier’s checks worth approximately $5.6 million, representing a portion of the fees charged to professional athletes for the preparation of their false tax returns, and a portion of the fees charged for obtaining fraudulent PPP loans. The two schemes resulted in total losses of more than $44 million.
Havana, was sentenced today to 42 months in prison. Thanh Rudin was sentenced on February 10 to 34 months in prison. Thanh Rudin’s brother, Quin Rudin, was sentenced in October 2022 to 10 years in prison for his role in the scheme.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; Special Agent in Charge Wayne A. Jacobs of the FBI Washington Field Office Criminal Division; and Special Agent in Charge Kareem Carter of the Washington, D.C. Field Office, IRS-Criminal Investigation made the announcement after sentencing by Senior U.S. District Judge Anthony J. Trenga.
The U.S. Attorney’s Office for the Central District of California and U.S. Small Business Administration provided assistance with the investigation.
Assistant U.S. Attorneys Kimberly M. Shartar and Kimberly R. Pedersen for the Eastern District of Virginia and Assistant Chief David Zisserson of the Tax Division prosecuted the case.
Outcome: 02/10/2023 24 Minute Entry for proceedings held before District Judge Anthony J. Trenga: Sentencing held on 2/10/2023 for Thanh Ngoc Rudin as to Counts 1 and 2. U.S. appeared through Kimberly Shartar, David Zisserson, and Kimberly Pedersen. Defendant appeared with counsel, Vicki Podberesky and Nina Ginsberg. Both parties object to the calculated loss amount. Guidelines amended. Defendant sentenced to: BOP for 34 months as to each Count, to run concurrently; 3 years SR as to each Count, to run concurrently, with special conditions; Restitution TBD; $200 SA. Defendant to self-surrender as instructed by the U.S. Probation Office. (Court Reporter R. Montgomery)(dzir) (Entered: 02/16/2023)
02/10/2023 25 Consent ORDER OF FORFEITURE as to Thanh Ngoc Rudin. Signed by District Judge Anthony J. Trenga on 2/10/2023. (dzir) (Entered: 02/16/2023)
02/10/2023 26 Restitution Judgment as to Thanh Ngoc Rudin. Signed by District Judge Anthony J. Trenga on 2/10/2023. (dzir) (Additional attachments added on 2/17/2023: # 1 Sealed Attachment A, # 2 Sealed Attachment B) (dzir). (Entered: 02/16/2023)
02/10/2023 27 JUDGMENT as to Thanh Ngoc Rudin for Counts 1 and 2: BOP for 34 months as to each Count, to run concurrently; 3 years SR as to each Count, to run concurrently, with special conditions; $38,206,074.98 Restitution; $200 SA. Signed by District Judge Anthony J. Trenga on 2/10/2023. (dzir) (Entered: 02/16/2023)
02/10/2023 28 Sealed Statement of Reasons as to Thanh Ngoc Rudin (dzir) (Entered: 02/16/2023)
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Defendant's Experts:
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