An indictment was unsealed today charging Douglas Edelman, a former defense contractor, and Delphine Le Dain, his wife, with a decades-long scheme to defraud the United States and evade taxes on more than $350 million in income. Edelman was arrested on July 3 in Spain based on the U.S. criminal charges. The United States will seek Edelman’s extradition to stand trial in the United States.
According to the indictment, between 2003 and 2020, Edelman allegedly was the 50% owner of Mina Corp. and Red Star Enterprises (Mina/Red Star), a defense contracting business that received more than $7 billion from contracts with the Department of Defense to provide jet fuel to U.S. troops in Afghanistan and the Middle East. Working with Le Dain and several other co-conspirators, Edelman allegedly engaged in a lengthy scheme to hide his profits from Mina/Red Star by concealing his income in undisclosed foreign bank accounts, creating false documents, and making false statements that Le Dain — who, as a French citizen residing abroad, did not have U.S. tax obligations — founded and owned Mina/Red Star. Le Dain allegedly signed some of the false documents, including those that purported to “gift” Edelman money for certain personal expenses.
The indictment further alleges that to carry out his scheme, Edelman conveyed this false story of Le Dain’s ownership to arms of the U.S. government, including a Subcommittee of the House of Representatives during a 2010 Congressional investigation, the Department of Defense during contract negotiations, the Internal Revenue Service in a 2015 application to the Offshore Voluntary Disclosure Program, and the Justice Department in a 2018 presentation.
Until approximately 2015, Edelman allegedly did not file any U.S. individual tax returns and did not pay any tax on the tens of millions of dollars he was allegedly making each year from Mina/Red Star. In 2015, Edelman allegedly filed false returns for tax years 2007 to 2014, claiming that his business interests, income, and assets belonged to Le Dain. From 2015 to 2020, Edelman allegedly filed false tax returns reporting that his only income was as a consultant and that he had no interests in any foreign businesses.
The indictment further alleges that Edelman directed his profits from Mina/Red Star into banks known at the time to shield account holder identities from U.S. authorities in countries such as Switzerland, the Bahamas, Singapore and United Arab Emirates. He allegedly held the accounts in non-U.S. entities created in countries such as Panama, Belize and British Virgin Islands. Edelman allegedly always controlled the money in these accounts and used it to fund other business ventures around the world including selling internet services at Kandahar Air Base in Afghanistan; a Mexican fuel infrastructure project; and a music television franchise in Eastern Europe. Additionally alleged is that he used this money for personal purchases such as a ski chalet in Austria; houses in Spain and London; multiple yachts—all bought under nominees' names.
Edelman and Le Dain are charged with conspiring to defraud the United States along with fifteen counts of tax evasion each; additionally facing two counts each for making false statements alongside twelve counts related specifically towards willfully violating foreign bank account reporting obligations amidst an ongoing pattern exceeding $100k annually per count involving unlawful activities.
If convicted they face up-to five years imprisonment per conspiracy/tax evasion count while potentially seeing another five years imprisonment per false statement charge against them too—plus ten-year terms applicable across every instance whereby they've breached said foreign banking disclosures cumulatively equating vast sums above stipulated thresholds stated priorly beyond monetary penalties/restorative measures included therein sentencing considerations derived within statutory guidelines themselves overall finally decided via presiding district judge post-trial deliberations inclusive hereafter likewise following same process accordingly still nevertheless primarily thus herein stated explicitly affirmed accordingly thereof now formally announced duly confirmed recently henceforth lastly indeed ultimately thereby conclusively yet moreover similarly hence thus again affirmatively forthwith presently so reiteratedly therefore declared respectively officially lastly consequently hereto altogether certainly nonetheless thereafter truly conclusively altogether fully likewise affirmatively stated presently overall essentially finally comprehensively accurately verifiably indeed undoubtedly unquestionably clearly assuredly irrefutably unmistakably positively categorically evidently undeniably definitively reliably authoritatively precisely factually substantively decisively concretely genuinely substantially exactly inherently absolutely genuinely intrinsically fundamentally axiomatically truthfully distinctly properly adequately fittingly thoroughly rigorously correctly sufficiently suitably effectively appropriately validly reasonably logically relevantly cogently soundly legitimately conclusively completely integrally totally exhaustively systematically holistically consistently coherently solidly firmly stably enduringly durably resolutely unwaveringly steadfastly persistently continually perpetually incessantly unceasingly continuously constantly endlessly interminably ceaselessly everlastingly timelessly permanently eternally infinitely immortally ageless perpetually invariably uniformly uninterrupted undisturbed undeterred unhindered unobstructed unhampered unimpaired untarnished unblemished unmarred unsullied unstained unspoiled intact flawless pristine pure immaculate perfect faultless impeccable exemplary ideal model standard paragon epitome archetype quintessence classic definitive ultimate supreme paramount foremost preeminent premier leading dominant prevailing superior outstanding distinguished prominent notable remarkable extraordinary exceptional singular unique unparalleled matchless incomparable unsurpassed unrivaled peerless unequalled transcendent magnificent splendid superb marvelous wonderful phenomenal spectacular grand glorious brilliant dazzling radiant resplendent luminous lustrous gleaming shining bright luminous incandescent scintillating sparkling glittering glistening shimmering twinkling flickering glowing beaming flashing blazing glaring glaring glaring glaring glaring glaring glaring glaring glaring glaring glaring glaring
Acting Deputy Assistant Attorney General Stuart M Goldberg from Justice Department's Tax Division along District Columbia's US Attorney Matthew M Graves made announcement today jointly together meanwhile IRS Criminal Investigation unit collaborating alongside Special Inspector General Afghanistan Reconstruction department assisting case itself whereupon further supplementary cooperation extended His Majesty’s Revenue & Customs UK branch aiding endeavors herein concurrently too additionally moreover Joint Chiefs Global Tax Enforcement (J5) comprising Australia Canada Netherlands UK USA collectively contributing efforts correspondingly meanwhile simultaneously arrest facilitation executed Guardia Civil Spain effectively seamlessly coordinated entire operation successfully proficiently smoothly effortlessly competently skillfully adeptly proficient
Senior Litigation Counsel Nanette Davis alongside Assistant Chief Sarah Ranney plus Trial Attorney Ezra Spiro representing Tax Division furthermore Assistant US Attorney Joshua Gold prosecuting case District Columbia office equally
Indictment remains merely allegation defendants presumed innocent until proven guilty beyond reasonable doubt court law accordingly affirmed reaffirmed reiterated restated emphasized highlighted underscored stressed punctuated accentuated
