Maryland Annuity News

Local attorney indicted by federal grand jury on tax charges

Washington, D.C. - United States Attorney for the District of Columbia Roscoe C. Howard, Jr., Vicki S. Duane, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, and Daniel L. Black, Jr., Acting Deputy Chief Financial Officer for the District of Columbia's Office of Tax and Revenue, announced that a federal grand jury today indicted Navron Ponds, 54, a Washington, D.C. lawyer, on a variety of tax charges. The conduct at issue occurred from 1988 through 1999. If convicted of the charges, Ponds faces a potential sentence in excess of 35 years of incarceration.

According to the scheme set forth in the Indictment, Ponds failed to file timely federal personal income tax returns for calendar years 1988 and 1990 through 1994. When he finally filed for these years in October 1995, he reported a substantial tax deficiency. In late 1995 and early 1996, Ponds paid a total of $2,360 towards his 1988 return, but has failed to make any other payments for these tax years since 1995. In late 1995, the IRS assessed his total deficiency for years 1988 and 1990-1994 at over $60,000. With interest, he allegedly owes over $117,000 for these years. Furthermore, Ponds allegedly failed to file returns for calendar years 1996 through 1999, and owes significant amounts in tax revenue for these four years as well.

The Indictment further charged that since 1996, upon being aware that the Internal Revenue Service was attempting to collect on past taxes, Ponds took numerous steps to evade payment and evade assessment of taxes, including, for example, transferring the title of automobiles (a Porsche and Mercedes) to his sister and selling a rental property and causing his sister to open an annuity account in her name with the proceeds. Ponds used the funds in that annuity account for his personal use and benefit. The tax evasion scheme for calendar years 1988, 1990 through 1994 and 1996 through 1999 is set forth in five counts of Tax Evasion. In addition, Ponds is charged with Fraud in the First Degree for his failure to file income tax returns or pay District of Columbia income taxes subsequent to 1992. The Indictment also includes a count whereby the United States seeks to forfeit the proceeds of the annuity account.

In announcing the indictment, United States Attorney Howard, Special Agent Duane and Deputy Chief Financial Officer Black commended Special Agents Nancy Becker of the Internal Revenue Service, Criminal Investigation, and Special Agent Joseph Sadler from the District of Columbia Office of Tax and Revenue. They also commended Assistant United States Attorney Mark H. Dubester, who handled the Grand Jury investigation, and Assistant United States Attorney Linda Otani McKinney, who handled the forfeiture aspects of this case.

An information is merely a formal charge that a defendant has committed a violation of criminal laws. Every defendant is presumed innocent until and unless proven guilty.

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	The NASD Reminds Members of Their Responsibilities Regarding the Sales of Variable Annuities NASD is an independent self-regulatory organization charged with regulating the securities industry, including sellers of variable annuities. The NASD recently issued a release to its members reminding them of their responsibilities to investors in selling variable annuities (NASD Notice 99-35, "The NASD Reminds Members of Their Responsibilities Regarding the Sales of Variable Annuities").