Olympic figure skater John Baldwin Jr. & his father under federal indictment in San Diego

[Sylvia]

Article by Mark Zeigler who covers many different sports (including figure skating) and is based in San Diego: http://www.sandiegouniontribune.com/sports/sd-sp-john-baldwin-federal-indictment-20180412-story.html

His father, John Baldwin Sr., was also indicted by the grand jury on charges alleging a failure to comply with financial reporting obligations from their used car business, Baldwin Auto Sales.
Both pleaded not guilty last month. A spokesperson for the U.S. Attorney’s office said the various charges carry maximum prison sentences ranging from three to 10 years, plus the potential forfeiture of $1 million.
...
The indictment was filed March 23, following a federal investigation that has lasted several years. Baldwin Sr. said his Escondido home was raided by IRS agents 2½ years ago and they have been offered several plea agreements that they have rejected.

“My first inclination was I was just shocked: This is a mistake, this is preposterous, there’s just no way,” an emotional Baldwin Jr. said in the hallway outside the courtroom. “But then when I realized this is real, I got really upset because I started thinking of my family and my kids, and what could happen in a court even if I’m totally right. I don’t want this to go any further, but then on the other hand I’m not a felon. I’m not going to agree to be a felon under any plea bargain.
“You think I’m going to back down from this? I’m not. I kept skating and finally made an Olympic team (at age 32). I’m not the type of person to back down.”

 

[triple_toe]

So John Baldwin actually is a sleazy used car salesman?

 

[AngieNikodinovLove (ANL)]

is this the John Baldwin that proposed (awkwardly if you ask me) to Inoue on the ice? The "jr" part is confusing me.....

 

[ChelleC]

is this the John Baldwin that proposed (awkwardly if you ask me) to Inoue on the ice? The "jr" part is confusing me.....

Yes it is.

 

[Cleo1782]

is this the John Baldwin that proposed (awkwardly if you ask me) to Inoue on the ice? The "jr" part is confusing me.....

Yes, lol, and as far as I know they are still together, share children, and are not legally married. Nothing wrong with that, but I always find it slightly humorous given that on ice proposal. And yes, being in the audience for that proposal was awkward.

 

[gkelly]

The article refers to Inoue as his wife, for whatever that is worth.

 

[StasiyaGalustyanLove]

Another criminal in USA skating, what a surprise ..... NOT! Adam Rippon, you are next!

 

[skatesindreams]

John Baldwin, Sr. was a successful National competitor for many years.
I sat behind him in 2006; as John and Rena skated/qualified for the Torino Olympics, he was on his phone, making travel arrangements!

 

[kittyjake5]

I did not realize the the used car business was so profitable. When your gross receipts are 7.2 million for 2013 and 8.2 million for 2014 and your deposit history is less
than 10K, whoops red flag.

 

[caseyedwards]

That’s terrible. He did throw triple axel with inoye

 

[kirkbiggestfan]

And how were these skating coaches paid? Cash only?
He was choreographed by Pasha at some point...let's check her deposits.

 

[missing]

Next stop- Dancing With The Stars.

 

[Japanfan]

The indictment alleges they made regular cash deposits at or below $10,000, known as “structuring” because it is beneath thresholds that oblige banks to file federal notifications of large currency transactions.

The Baldwins also are charged with failing to report cash receipts exceeding $10,000 for the sale of cars.

Baldwin Jr. said he typically makes deposits of $5,000 at a time because he uses the ATM and there are limits on cash deposits — forcing him to split them into smaller amounts.

If they sold a car for $10,001, and then deposited the payment in two installments, the car still cost $10,001, and they would have been obliged to file a notification. Should have been obvious to them.

What a stupid thing to do.

 

[Anita18]

If they sold a car for $10,001, and then deposited the payment in two installments, the car still cost $10,001, and they would have been obliged to file a notification. Should have been obvious to them.

What a stupid thing to do.

Indeed. What a stupid hill to die on, criticizing how the tax codes work when they apply to literally every business. Disagreeing with that by getting around the laws isn't "taking a stand," it's "being super sketchy."

 

[WillyElliot]

I did not realize the the used car business was so profitable. When your gross receipts are 7.2 million for 2013 and 8.2 million for 2014 and your deposit history is less
than 10K, whoops red flag.

I've never understood how greed can make you THAT stupid. Recently there was a bust on some rehab facility and the owners overbilled the government $250,000,000!!! And this is a nondescript crappy looking place! They could EASILY have flown under the radar with less than 10M, which would set up anyone for life, but nope, the more they got away with it, the more they attempted to steal even more from the government. Greed is NOT good.

 

[Jarrett]

The feds offering multiple deals doesn't sound like they have much of a case to actually convict.

 

[greenapple]

Yes, lol, and as far as I know they are still together, share children, and are not legally married. Nothing wrong with that, but I always find it slightly humorous given that on ice proposal. And yes, being in the audience for that proposal was awkward.

John Baldwin and Rena Inoue have been legally married for many years. https://www.nbcsandiego.com/news/lo...-Olympian-Skating-Couples-Feel-473990773.html

 

[libecha]

The feds offering multiple deals doesn't sound like they have much of a case to actually convict.

Actually the federal conviction rate is over 95%. The feds don't bring cases unless and until they have you nailed dead to rights. But this dollar amount is penny ante by their standards and if the Baldwins take a plea deal it saves the prosecutors the time and hassle of a trial.

 

[Erin]

Indeed. What a stupid hill to die on, criticizing how the tax codes work when they apply to literally every business. Disagreeing with that by getting around the laws isn't "taking a stand," it's "being super sketchy."

Not making any commentary on the Baldwins' guilt or innocence, but they are not commenting on the tax code.

 

[overedge]

Actually the federal conviction rate is over 95%. The feds don't bring cases unless and until they have you nailed dead to rights. But this dollar amount is penny ante by their standards and if the Baldwins take a plea deal it saves the prosecutors the time and hassle of a trial.

Exactly. I would guess the feds have much bigger fish to fry that they would prefer to spend their resources on.

ETA: I thought the Baldwins had a franchised dealership for Mercedes or some other high-end line. Or is that some other part of the family?

 

[UMBS Go Blue]

Exactly. I would guess the feds have much bigger fish to fry that they would prefer to spend their resources on.

ETA: I thought the Baldwins had a franchised dealership for Mercedes or some other high-end line. Or is that some other part of the family?

I thought that at first as well, but remembered that it's the Stieglers:

http://www.autostieglerca.com/

 

[BaileyCatts]

Okay, so here's why I could never own a business ... or do my own taxes. When I read the article I thought it was a perfectly acceptable reason of depositing $5K at a time at the ATM cause there was a limit. And if you are selling used cars, its a highly cash business and you don't want all that cash sitting around your office so go run to the ATM or bank and deposit it as you get it. No big deal. Then I read the thread. Apparently .... that be wrong. I'm glad I'm not rich and don't have these problems to worry about.

 

[Japanfan]

Okay, so here's why I could never own a business ... or do my own taxes. When I read the article I thought it was a perfectly acceptable reason of depositing $5K at a time at the ATM cause there was a limit. And if you are selling used cars, its a highly cash business and you don't want all that cash sitting around your office so go run to the ATM or bank and deposit it as you get it. No big deal. Then I read the thread. Apparently .... that be wrong. I'm glad I'm not rich and don't have these problems to worry about.

Depositing $5K at a time isn't the issue. The issue is that a cash receipt for a sale of over $10,000 has to be be reported. That would be the same regardless of how many deposits would have been made for one sale.

 

[BaileyCatts]

^^ Further proof of my never being able to own a business. Totally missed that part.

 

[MacMadame]

If they sold a car for $10,001, and then deposited the payment in two installments, the car still cost $10,001, and they would have been obliged to file a notification. Should have been obvious to them.

That's not how it works, if I'm understanding you correctly. There are two issues here.

(1) If I deposit $10,000+, then the Bank sends a notification to the Feds. I don't do anything.

(2) In terms of how I record the sale, that doesn't get reported to the Feds directly either. That only comes up if the IRS audits me and asks me to prove my Income numbers. Then I'd show my receipts for each car I brought in and what it sold for. There's no reason to break these into two parts if over 10k because it has nothing to do with the deposit.

If that wasn't clear, let's say I sell two cars for 6,000. If I deposit them together, for $12000, then the Bank sends a notification to the Feds even though each sale was for under 10k. Conversely, if I sell a care for 12k and make two 6k deposits, then the Bank doesn't notify the Fed. Even if I put the sale down in my books accurately as 12k.

 

[Jarrett]

Actually the federal conviction rate is over 95%. The feds don't bring cases unless and until they have you nailed dead to rights. But this dollar amount is penny ante by their standards and if the Baldwins take a plea deal it saves the prosecutors the time and hassle of a trial.

Where are you getting those numbers? The various U.S. government websites I see 60-78% guilty verdicts which don't include cases where they are dismissed or dropped prior to a final verdict.

 

[el henry]

Where are you getting those numbers? The various U.S. government websites I see 60-78% guilty verdicts which don't include cases where they are dismissed or dropped prior to a final verdict.

I have been looking at the US Attorney annual statistical report (the last I saw was 2014) which shows a 92% “guilty” rate (both pleas and trail convictions). That number sounds about right IME.

I can’t imagine the US Attorney only getting a 60 to 70 conviction rate; as was noted earlier, the government has the luxury of building a case. And picking and choosing the cases they bring. I hope the Barrets have experienced defense counsel.

 

[Japanfan]

That's not how it works, if I'm understanding you correctly. There are two issues here.

(1) If I deposit $10,000+, then the Bank sends a notification to the Feds. I don't do anything.

What is confusing to me is this sentence:

His father, John Baldwin Sr., was also indicted by the grand jury on charges alleging a failure to comply with financial reporting obligations from their used car business, Baldwin Auto Sales.

So, if he wasn't responsible to send the notification, what was his failure?

If that wasn't clear, let's say I sell two cars for 6,000. If I deposit them together, for $12000, then the Bank sends a notification to the Feds even though each sale was for under 10k. Conversely, if I sell a care for 12k and make two 6k deposits, then the Bank doesn't notify the Fed. Even if I put the sale down in my books accurately as 12k.

The indictment alleges they made regular cash deposits at or below $10,000, known as “structuring” because it is beneath thresholds that oblige banks to file federal notifications of large currency transactions.

This might suggest that he should have made larger deposits.

 

[PDilemma]

Wrapping himself up in the Olympic flag in his own defense seems a bit tacky.

 

[MacMadame]

So, if he wasn't responsible to send the notification, what was his failure?

There are lots of federal reporting requirements for businesses.

This might suggest that he should have made larger deposits.

He said the ATM would only let him deposit $5000 at a time which is true for a lot of banks.

It's possible his dad was doing something shady and he was a dupe. It's also possible that he was deliberately depositing under the 10,000+ limit for shady reasons. But why $5000 which is the limit at ATMs and not some other smaller amounts that were under 10k? If he often deposited $5000 or less, that gives credibility to the ATM explanation.