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July 31, 2010

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Jury Convicts Local Couple Of Tax Evasion

Published: 11:22 AM, 03/10/2010
 


Source: The Greeneville Sun

Edward Eastwood,

Elina G. Eastwood

Face Possible Fine,

Long Prison Terms

A jury here on Monday convicted Edward K. Eastwood and Elina Gromova Eastwood, of Greeneville, of federal conspiracy, tax evasion, false statements, and financial transaction structuring charges.

The convictions came at the end of a nine-day trial in U.S. District Court.

Both Eastwoods remain in jail awaiting sentencing, which is set for Sept. 20.

Edward Eastwood faces a potential term of imprisonment of 30 years and a potential fine of $1.1 million dollars.

Elina Gromova Eastwood faces a potential term of imprisonment of 20 years and a potential fine of $850,000.

In addition, the defendants may be ordered to pay the federal income taxes as restitution.

A press release from the U.S. Attorney's office said, "The evidence presented at trial demonstrated that Edward Eastwood was a certified registered nurse anesthetist who traveled to Bishkek, Kyrgystan, in 1997, to marry Elina Gromova, a citizen of the Republic of Kyrgystan (a former Soviet Republic), a press release said.

"In 1998, Gromova traveled to the United States and married Eastwood.

"During the next eight years, Eastwood earned more than $700,000 in income, filed Tax Defier Zero Tax Returns, and failed to pay any federal income taxes.

"He also systematically transferred all of his assets (including cash, gold, cars, trucks, trailers, and real estate) to his wife, who has never registered with the Social Security System.

"As a result of routine tax collection procedures, Elina Gromova Eastwood initiated civil litigation in federal district court."

The U.S. Attorney's office's release continued, "During the process of that civil litigation, both defendants submitted materially false statements regarding the existence and ownership of assets and the existence of books and records.

"A storage locker rented by Edward Eastwood under another name disclosed the existence of 76 ounces of gold, numerous semi-automatic weapons and thousands of rounds of ammunition, and books and records of account of Edward Eastwood.

"Information ultimately led to the discovery of an undisclosed bank account in the name of a sham trust, which led to the discovery of nominee-owned real estate and an additional 273 ounces of gold. 222 ounces of the gold acquired by the defendants remain unaccounted for."

Law enforcement agencies participating in the joint investigation included IRS Criminal Investigation; the Federal Bureau of Investigation; the Department of Homeland Security Citizenship and Immigration Service; the Greene County Sheriff's Office, and the Morristown Police Department.

Assistant U.S. Attorney Helen Smith represented the United States at the trial.

 
For more information and stories, see The Greeneville Sun.

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