Drug Task Force Bust Uncovers Major Tax Fraud by Illegal Aliens

(Gadsden, AL - February 5, 2010) A three-week long drug investigation and bust has uncovered what Etowah County Sheriff Todd Entrekin suspects is at least a million dollar tax fraud scheme in western Etowah County.

During a press conference Friday morning, Entrekin, District Attorney Jimmie Harp, Drug Task Force Commander Rob Savage and FBI Special Agent Bren Tallent announced the arrest of three individuals who have been charged with one count of drug trafficking each. During the three-week long investigation, a scheme to defraud the federal government of hundreds of thousands of dollars or more was uncovered.

Lori Lei Bodden, 41, Carlos Cardona-Herrera, 36, and Juan Hernandez-Telle, 22, all of Boaz were arrested following a drug bust last night in the Egypt Community of west Etowah County. Two of the three, according to Sheriff Entrekin are illegal aliens.

Each person is charged with one count of trafficking after approximately three-quarters of a pound of Mexican crystal methamphetamine were confiscated. The drugs have a street value of approximately $40,000. In addition to the drugs, several long guns and hand guns (including a high power automatic handgun) six vehicles, one boat and several computers were seized from the mobile home owned by Bodden.

Documents were also seized indicating a major tax fraud scheme involving the first time home buyer's tax credit. Some of the three arrested were creating false sales contracts for non-existent homes in order to defraud the government of thousands of dollars. One file, according to Sheriff Entrekin, involved an illegal alien who had reported $6,000 of income and was given a $13,000 tax refund.

After the refund was paid by the government into a bank account controlled by Bodden, approximately three-quarters of the funds would be transferred to the tax filer's accounts. Paper records seized indicate that more than $200,000 in claims were processed. Sheriff Entrekin says he "expects that the numbers will get into the millions" during today's press conference.

Drug Task Force Rob Savage says the Safe Streets Task Force and the Drug Task Force had conducted undercover investigations of the residence for approximately three weeks. The investigation began with leads from street-level investigations in Gadsden, which led undercover officers to the mobile home in the Egypt Community. Within about 8-10 days into what Savage called a "routine narcotics case, we started to work the tax angle."

He says his investigators observed numbers of individuals in the home when they would enter to purchase drugs who were filing their tax reports. Savage says his officers and others are going through the seized tax records to determine if any of them involve actual homes. "So far, no homes exist, and at least one of the addresses given is a vacant lot."

All four law officers say they are proud of the work being done by the Safe Streets Task Force and Drug Task Force to stop the flow of drugs in Etowah County. Savage says the price of Crystal Meth has risen in the past 24 months from $1,200 per ounce to $2,600 per ounce. In addition, the number of labs busted per month has increased from three per month a year ago to nine to ten per month now. "That's because no one can get the Mexican drugs and are having to make their own in 'shake and bake labs.'"

"Shake and bake labs" produce a minimal amount of crystal meth, about 20 grams, as compared to the kilos and pounds of drugs formerly smuggled into Etowah County from Mexico and other locations.

"I think the combination of drug education programs like ZeroMeth, our Tip Line commercials and the Drug Task Force's efforts to arrest drug distributors has made Etowah County a much safer place for its citizens and a very unfriendly place for drug organizations," Entrekin tells GadsdenMetro.

All three invididuals are being held in the Etowah County Detention Center on one count of drug trafficking with a bond set at $100,000 each. Other charges will follow, according to a press release from the Sheriff.