12cr0 - federal criminal defense lawyers...g. onorabout april 15,2006, defendant al-attar signed and...

~DHFIDIS: USAO 2009ROOl18

_FIl.£D _ENTERED_lOGGED _RECEIVED

IN THE UNITED STATES DISTRICT COURTFOR THE DISTRICT OF MARYLAND

UNITED STATES OF AMERICA *BY

MAR 282012AT GREENBELT

CLERK, U.S. DISTRICT COURTDISTRICT OF MARYlAND

DEPUTY

v.

ABDUL H. FADUL, andALI AL-ATTAR,

Defendants

********

*******

CRIMINAL N0.DKC 1 2 CR0 1 71'(Conspiracy, 18 U.S.C. ~ 371; Aidingand Assisting in the Preparation ofFalse Tax Returns, 26 U.S.c. ~ 7206(2»

INDICTMENT

COUNT ONE(Conspiracy to Defraud)

The Grand Jury for the District of Maryland charges that:

Introduction

1. At all times relevant to this Indictment, defendant ABDUL H. FADUL

("F ADUL") was a cardiologist living in Alexandria, Virginia and defendant ALI AI-ATTAR

("AL-A TT AR") was a doctor of internal medicine living in McLean, Virginia.

2. At various times relevant to this Indictment, defendants FADUL and

AL-A TT AR held joint ownership interests in the following nine medical practices (the "joint

medical practices"):

Briggs Chaney Clinics, LLC

Dominion First Urgent Care, LLC

Dominion Urgent Care Center, LLC

Dominion Medical Center, LLC

Silver Spring, Maryland

Falls Church, VA

La Plata, Maryland and Springfield, VA

La Plata, Maryland

Case 8:12-cr-00171-DKC Document 1 Filed 03/28/12 of 13

Dominion Prime Urgent Care, LLC Falls Church, VA

Dominion Clinics, LLC Falls Church, VA

Injury Center of America, LLC La Plata, Maryland and Springfield, VA

Injury Center of DC, PLLC La Plata, Maryland

Total Health, LLC Suitland, Maryland

3. For the tax years 2004 and 2005, defendants FADUL and AL-ATTAR engaged

an accounting and financial planning firm with offices in Maryland ("Accounting Firm A") to

prepare income tax returns for themselves and the joint medical practices.

4. At all times relevant to this indictment, each of the joint medical practices held a

bank account in its own name. Defendant FADUL informed Accounting Firm A that he and

defendant AL-ATTAR had a standard practice to deposit into each of the joint medical

practices' bank accounts the business receipts generated by the corresponding joint medical

practice, including payments received from patients and insurance companies.

5. On or about March 26,2004, at the Vienna, Virginia branch of Virginia

Commerce Bank ("VCB"), defendants FADUL and AL-ATTAR each signed a signature card to

open bank account number xxxx6863 in their own names ("the VCB account").

The Charge

6. Between on or about March 26, 2004 and on or about July 12,2006, in the

District of Maryland and elsewhere, the defendants,

ABDUL H. FADUL, andALI AL-ATTAR,

did knowingly and intentionally conspire and agree together to defraud the United States, and an

agency thereof, for the purpose of impeding, impairing, obstructing, and defeating the lawful

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Government functions of the Internal Revenue Service ("IRS") of the United States Department

of the Treasury in the ascertainment, computation, assessment, and collection of the revenue: to

wit, income taxes of defendants FADUL and AL-ATT AR.

Manner and Means of the Conspiracy to Defraud

The manner and means of committing the conspiracy included, among others, the

following:

7. During the years 2004 and 2005, defendants FADUL and AL-ATTAR caused to

be deposited into the VCB account over $500,000 in checks from patients and insurance

companies in return for medical services rendered by defendants FADUL, AL-ATTAR, and the

joint medical practices. Most of these checks were endorsed with a stamp bearing the names of

both defendants FADUL and AL-A TTAR.

8. Defendants FADUL and AL-ATTAR spent the funds deposited into the VCB

account on personal items, including real estate and other personal investments.

9. Defendants FADUL and AL-ATTAR concealed from Accounting Firm A the

existence of the VCB account until after March 5, 2009.

10. By concealing material information from Accounting Firm A, defendants FADUL

and AL-ATTAR caused it to prepare 2004 and 2005 U.S. Individual Income Tax Returns, Forms

1040, for defendant FADUL and his wife, and for defendant AL-ATT AR and his wife, which

fraudulently omitted the income that they had caused to be deposited into the VCB account.

11. Defendants FADUL and AL-ATTAR signed and caused to be filed with the IRS

their respective false and fraudulent 2004 and 2005 U.S. Individual Income Tax Returns, Forms

1040.

3


Overt Acts

In furtherance of the conspiracy to defraud, and to achieve its objectives, at least one of

the co-conspirators performed or caused to be performed at least one of the following acts,

among others, in the District of Maryland and ~lsewhere:

A. On or about March 24, 2004, defendants FADUL and AL-A TT AR signed a

signature card to open the VCB account.

B. On or about April 13, 2004, defendant AL-ATTAR caused checks totaling

$29,070.52 to be deposited into the VCB account.

C. On or about May 25, 2004, defendant AL-ATT AR caused checks totaling

$75,864.68 to be deposited into the VCB account.

D. On about the dates listed in the chart below, defendants AL-ATTAR and FADUL

caused the following payments for their own benefit to be made out of the VCB account.

Dl 10/6/04 102 $50,000 AL-ATTAR Deposited into bank accountxxxxx 1038 at Bank of Americaheld in the name of AL-A TT ARand his wife

D2 10/7/04 101 $50,000 FADUL Deposited into bank accountxxxxxx6806 at Maryland Bankand Trust Company held in thename of FADUL and his wife

D3 10/21/04 103 $20,000 FADUL and Earnest money deposit on realAL-ATTAR estate investment

D4 10/29/04 131 $30,000 FADUL and Earnest money deposit on realAL-ATTAR estate investment

D5 11/8/04 132 $50,000 FADUL Earnest money deposit on realestate investment

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06 11/24/04 133 $40,000 FADUL Repayment of personal loan

07 12/7/04 WIre $25,000 AL-ATTAR Real estate investment

E. On or about July 15, 2005, defendant AL-ATT AR signed and caused to be filed a

false and fraudulent 2004 U.S. Individual Income Tax Return, Form 1040, prepared in the name

of defendant AL-ATT AR and his wife, that omitted the portion of defendant AL-ATT AR' s

income that had been deposited into the VCB account.

F. On or about August 7, 2005, defendant FADUL signed and caused to be filed a


of defendant FADUL and his wife, that omitted the portion of defendant FADUL's income that

had been deposited into the VCB account.

G. On or about April 15,2006, defendant AL-ATTAR signed and caused to be filed

a false and fraudulent 2005 U.S. Individual Income Tax Return, Form 1040, prepared in the

name of defendant AL-ATT AR and his wife, that omitted the portion of defendant

AL-ATTAR's income that had been deposited into the VCB account.

H. On or about July 12,2006, defendant FADUL signed and caused to be filed a


of defendant FADUL and his wife, that omitted the portion of defendant FADUL' s income that

had been deposited into the VCB account.

18 U.S.C. S 371

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COUNT TWO(Aiding and Assisting in the Preparation of False Tax Returns)

The Grand Jury for the District of Maryland further charges that:

1. Paragraphs 1 through 5 and 7 through 11 of Count One are incorporated here.

2. On or about April 15, 2006, in the District of Maryland and elsewhere, the

defendant,

ALI AL-ATT AR,

did willfully aid and assist in, and procure, counsel, and advise the preparation and presentation

to the Internal Revenue Service ofa U.S. Individual Income Tax Return, IRS Form 1040, for

defendant AL-ATTAR and his wife for the calendar year 2005. The return was false and

fraudulent as to a material matter, in that on Line 17 defendant AL-ATTAR and his wife

reported other income in the amount of$152,436 and on Line 22 they reported total income in

the amount of $537,048, whereas, as defendant AL-ATT AR then and there knew, defendant

AL-ATTAR and his wife's joint other income and total income were substantially in excess of

the amounts reported.

26 U.S.C. S 7206(2)

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COUNT THREE(Aiding and Assisting in the Preparation of False Tax Returns)


Introduction


2. At all times relevant to this Indictment, defendant FADUL and his wife owned

and operated Cardio Vascular Center, LLC ("CVC"), a medical practice with offices in La Plata,

Maryland, that employed mobile ultrasound technicians to perform physician-ordered studies on

residents of nursing homes and other facilities in Maryland.

3. On or about June 21, 2003, defendant FADUL and his wife signed a signature

card to open account number xxxxxx6806 in their own names at Maryland Bank and Trust

Company ("the MB&T account").

4. On or about October 10,2004, defendant FADUL signed a signature card to open

account number xxxxxx9408 in his own name at County First Bank ("the County First account").

5. At times relevant to this indictment, defendant FADUL caused to be deposited

into the MB&T and County First accounts over $300,000 worth of the following payments:

a. payments from patients and their insurance companies for services

rendered by defendant FADUL and his medical practices;

b. checks made out to CVC by other medical practices controlled by

defendant FADUL as well as by third parties, including insurance companies. The other medical

practices controlled by defendant FADUL recorded the payments to CVC as expenses.

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6. At various times relevant to this Indictment, defendant FADUL used funds from

the MB&T account and the County First account for his personal enjoyment, including a

$155,000 payment to the Fisher Island Club in Florida made from the County First account on

March 11,2005.

7. Defendant FADUL concealed from Accounting Firm A the payments for medical

services deposited into the MB&T and County First accounts in 2005, and also concealed from

Accounting Firm A statements from the accounts.

8. By concealing material information from Accounting Firm A, defendant FADUL

caused it to prepare a 2005 U.S. Individual Income Tax Return, Form 1040, for defendant

FADUL and his wife, which defendant FADUL signed and caused to be filed, that falsely and

fraudulently omitted the portion of defendant FADUL's income that had been deposited into the

VCB, MB&T, and County First accounts.

The Charge

9. On or about July 12,2006, in the District of Maryland and elsewhere, the

defendant,

ABDUL H. FADUL,


to the Internal Revenue Service of a U.S. Individual Income Tax Return, IRS Form 1040, for

defendant FADUL and his wife for the calendar year 2005. The return was false and fraudulent

as to a material matter, in that on Line 21 defendant FADUL and his wife reported other income

in the amount of $128 and on Line 22 they reported total income in the amount of $592,348,

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whereas, as defendant FADUL then and there knew, defendant FADUL and his wife's joint

other income and total income were substantially in excess of the amounts reported.

26 U.S.C. ~ 7206(2)

9


COUNT FOUR(Aiding and Assisting in the Preparation of False Tax Returns)


Introduction

1. Paragraphs 1 through 5 and 7 through 11 of Count One and paragraphs 2 through

6 of Count Three are incorporated here.

2. During the year 2006, defendant FADUL caused to be deposited into the VCB

account checks made out by patients and insurance companies in return for medical services that

had been rendered by defendant FADUL, defendant AL-ATTAR, and their medical practices.

3. During the year 2006, defendant FADUL deposited payments for medical services

into the MB&T and County First accounts.

4. Defendant FADUL did not inform Accounting Firm A of the checks made out by

patients and insurance companies in return for medical services that had been rendered by

defendant FADUL, defendant AL-ATT AR, and their medical practices that had been deposited

into the VCB account in 2006, nor did he inform them of the payments for medical services

deposited into the MB&T and County First accounts in 2006.

5. As a result, defendant FADUL caused Accounting Firm A to prepare a 2006 U.S.

Individual Income Tax Return, Form 1040, for defendant FADUL and his wife, which defendant

FADUL signed and caused to be filed, that falsely and fraudulently omitted the portion of

defendant FADUL's income that had been deposited into the VCB, MB&T, and County First

accounts.

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I •

I

The Charge

6. On or about June 21, 2007, in the District of Maryland and elsewhere, the

defendant,

ABDUL H. FADUL,


to the Internal Revenue Service of a U.S. Individual Income Tax Return, IRS Form 1040, for



in the amount of $253 and on Line 22 they reported total income in the amount of $877 ,881,



26 U.S.C. S 7206(2)

11


r

COUNT FIVE(Aiding and Assisting in the Preparation of False Tax Returns)


Introduction


2. In 2007, defendant FADUL caused to be deposited into the VCB account checks

made out by patients and insurance companies in return for medical services that had been

rendered by defendant FADUL, defendant AL-A TTAR, and their medical practices.

3. Defendant FADUL did not inform Accounting Firm A of the checks made out by

patients and insurance companies in return for medical services that had been rendered by

defendant FADUL, defendant AL-A TTAR, and their medical practices that had been deposited

into the VCB account in 2007.

4. As a result, defendant FADUL caused Accounting Firm A to prepare a 2007 U.S.

Individual Income Tax Return, Form 1040, for defendant FADUL and his wife, which defendant

FADUL signed and caused to be filed, that falsely and fraudulently omitted the portion of

defendant FADUL's income that had been deposited into the VCB account.

5. On or about June 11,2008, in the District of Maryland and elsewhere, the

defendant,

ABDUL H. FADUL,


to the Internal Revenue Service ofa U.S. Individual Income Tax Return, IRS Form 1040, for


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in the amount of $80 and on Line 22 they reported total income in the amount of $944,789,



26 U.S.C. S 7206(2)

iUQ;)iRE, (

Rod J. RosensteinUnited States Attorney

A TRUE BILL:

SIGNATURE REDACTEDDate: Marc~ 2012

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