Operator of Centerville anti-aging skincare business convicted of tax fraud

Published: Tuesday, November 07, 2017 @ 8:38 PM

James Wright could spend up to 21 years in prison.

A Germantown businessman who controlled a Centerville anti-aging skincare business is going to prison -- the maximum would be for 21 years -- on tax fraud charges that accused him of diverting tens of thousands of dollars to himself, to pay rent for his mother as well as high school and college tuition for his five children, Justice Department Tax Division officials announced Tuesday. 

The trial was heard in federal court in Dayton. 

OTHER LOCAL NEWS: House set on fire for money, prosecutor says

James Wright, 62, was convicted on seven counts of filing false corporate, individual and private foundation tax returns. 

According to facts from an April indictment, evidence testimony presented at trial, Wright oversaw the day-to-day operations at the B&P Company Inc., 97 Compark Drive, which manufactured and sold an array of skincare products -- including Frownies, a wrinkle reduction product endorsed by celebrities, Acting Deputy Assistant Attorney General Stuart Goldberg said in a prepared statement. 

Wright's great-grandmother invented Frownies in 1889 and the product has been sold by his family ever since, according to the Justice Department. 

Frownies have existed since 1899. The original product was called Wrinkle Eradicator and is shown on the left. On the right are various other versions of the packaging over the years. (Skip Peterson/Dayton Daily News)(Skip Peterson)

Wright, beginning in the late 1990s, formed a series of entities to divert money from B&P to himself and family members. Instead of receiving a salary from B&P, Wright incorporated a company called The Remnant Inc., to which B&P paid "management fees." 

He caused the preparation of false corporate tax returns for The Remnant on which he deducted personal expenses including rent, utilities and pool and lawn care for his residence. Wright also used funds from The Remnant's bank accounts to pay rent for one of his daughters in New York and California. 

He paid personal expenses directly from B&P's bank accounts as well. He directed B&P employees to use corporate funds to pay rent and utilities at an apartment his mother rented, as well as rent for his daughter in New York. 

In 2004, Wright applied to the IRS for non-profit status for a private foundation called Fore Fathers Foundation. He caused B&P to make donations to the foundation and then used more than $170,000 of the foundation's funds over a seven-year period to pay for high school and college tuition for all five of his children. 

According to trial testimony, these payments constituted acts of self-dealing that Wright was required to disclose on the foundation's tax returns and pay excise taxes on. When Wright filed the foundation's returns for 2003 through 2009, he falsely reported that he had not engaged in acts of self-dealing and failed to pay excise taxes due on the distributions. 

The 2003 package of Frownies(Skip Peterson)

Evidence at trial also established that Wright had a long history of interactions with the IRS. 

+ In 1998, he pleaded guilty to tax evasion for using trusts to conceal income from the IRS. This criminal case arose from an audit of Wright's individual income tax returns. 

+ In 2002, the IRS initiated an audit of The Remnant's income tax returns. 

+ During a 2010 audit of B&P's income tax returns, Wright falsely stated to an IRS revenue agent that he had no prior dealings with the IRS, despite the fact that he had been criminally prosecuted in the 1990s and audited in both the 1990s and early 2000s. 

Wright faces a statutory maximum of three years in prison on each count, as well as a period of supervised release, restitution and monetary penalties. 

U.S. District Judge Walter H. Rice has not set a sentencing date.

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Dayton business owner fires shots, thwarts mobile phone store robbery

Published: Sunday, November 19, 2017 @ 9:43 AM
Updated: Sunday, November 19, 2017 @ 10:49 AM

STORE SURVEILLANCE: Fix or Cell Now robbery

UPDATE @ 10:44 a.m.

The owner of a Dayton mobile phone repair shop is calling for stricter punishment for robbers targeting area phone stores. 

Adam Seaton, owner of Fix or Cell Now, thwarted a Sunday morning robbery attempt at his store when he fired shots at the suspects. 

“Give these guys [robbery suspects] punishment. They’re just stealing them [cell phones] and the courts just let them out the next day,” Seaton said. 

"“It’s not the police it’s the justice system. The police arrest them and the courts just let them out the next day." 

Seaton said this is the fourth robbery - and the first he's successfully stopped, since opening his store in December. 

As for what other business owners can do to prevent robberies, Seaton advises they purchase a folding security gate. 

"Just had my security gate save my inventory from getting stolen so invest in one of those," Seaton said.

The owner of Fix or Cell Now says he fired shots at potential robbers.

EARLIER REPORT

A Dayton business owner says he caught a group of burglars breaking into his cell phone store before firing shots at the suspects Sunday morning.

Dayton police were dispatched to Fix or Cell Now at 619 Watervliet Street around 5:09 p.m. after the business' owner called to report the attempted robbery. 

According to a police report, owner Adam Seaton was blocks away when he received a notification on his phone from the store's security system. 

>> Belmont Market manager holds would-be robber at gunpoint

As he arrived to the store, Seaton told Dayton police he saw two men running from the store. Seaton said one of the men then stopped, pulled out a gun, and pointed it in his direction. 

According to police, Seaton then grabbed an AK-47 from his passenger seat and fired at the men. Seaton told our breaking news team he believes one of his bullets hit a suspect, but he cannot be sure. 

"Typically robberies at the store are done in 20 to 45 minutes, but I happened to be in the right place at the right time," Seaton said. 

>> Circle K on Watervliet Ave. is robbed of cash

Seaton told police the would-be-thieves wearing black masks fled on foot after he fired shots. He said he followed the two men in his truck as they made their way into a running getaway truck parked in the 2500 block of Mundale Avenue. 

Seaton continued to follow the suspects in his truck. That's when he says the suspects began firing shots at his vehicle out of a driver side window. 

Police said Seaton ended his pursuit at the intersection of Smithville Road and Linden Avenue before returning to the store to alert police. 

>> Can you ID CLark’s Pharmacy robbers in Brookville

According to the report, officers reviewed store surveillance which showed one suspect throw a brick through a security-gate reinforced window while another stood watch outside of the store. 

Seaton said this is the fourth attempted robbery at his store since its opening in December. He said broken glass and shell casing could be seen in the store's parking lot Sunday morning.

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Drugs, alcohol potential factors in wrong-way crash on I-75 in Dayton

Published: Saturday, November 18, 2017 @ 4:40 AM
Updated: Sunday, November 19, 2017 @ 4:20 AM

UPDATE @ 4:13 a.m.

Drugs or alcohol may be a factor in a Saturday morning wrong-way crash in Dayton that sent three to the hospital. 

A crash report reveals Glenn Ellis, 47, of Dayton, was driving northbound in the center, southbound lane of I-75 when he struck a southbound Toyota Prius. 

The driver of the Toyota swerved to avoid Ellis' oncoming minivan, and in doing so avoided a head-on collision, according to the report. 

Three people including Ellis and the driver and passenger in the Toyota were taken to Miami Valley Hospital from the scene. 

In their report, police said the crash remains under investigation while Ellis' lab results are processed. 

We are working to learn the conditions of each victim.

EARLIER REPORT

At least two people are at Miami Valley Hospital following a wrong-way crash on I-75 Saturday morning, according to dispatchers. 

Crews were sent to the two-car crash on southbound I-75 at West Third Street just before 2 a.m. 

Dispatchers said their call center received reports of a wrong-way driver shortly before the crash. 

>> 911 callers warn of wrong-way driver on SB I-75 prior to fiery crash

It is unknown how many people were injured, but three medics responded to the scene, according to dispatchers. 

The conditions of the two confirmed victims remain unknown. 

We will update this story as new details become available.

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Springfield stabbing victim suffers life-threatening injury, police search for suspect

Published: Saturday, November 18, 2017 @ 3:04 AM
Updated: Sunday, November 19, 2017 @ 5:50 AM

UPDATE @ 5:49 a.m.

Police are searching for a suspect in a Friday night stabbing outside of Whitey's Tavern in Springfield, according to a Springfield police report. 

Crews were dispatched to the 1100 block of Warder Street around 11:39 p.m. after a pizza delivery driver found the victim and called 911. 

Upon arriving, police found Jacob Trinkler, 24 of Springfield, with a heavily bleeding stab wound to the chest. Medics took Trinkler from the scene to Springfield Regional Medical Center with life-threatening injuries.

The delivery driver told police she saw Trinkler and the suspect arguing before the stabbing and witnessed the suspect take off down a nearby bike path after the attack. 

According to the report, a K-9 unit assisted officers in locating blood-stained rocks and a cell phone in a nearby area. 

Officers collected DNA swabs from the rocks and continue to investigate.

EARLIER REPORT

Springfield police are searching for a suspect after a man was stabbed in the chest, according to Springfield Sgt. Michael Curtis. 

Crews were dispatched to the 1100 block of Warder Street around 11:40 p.m. Friday on a report of a stabbing. 

Officers arrived to find the victim coherent and unable to recall the events leading up to the stabbing, according to Curtis. 

Curtis said a medical helicopter took the victim from the scene to Miami Valley Hospital where he remains in an unknown condition. 

Aided by a K-9 unit, Springfield officers were unable to locate a suspect at the scene. 

The incident remains under investigation.

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Entire city of Greenville under boil advisory

Published: Saturday, November 18, 2017 @ 6:09 PM

Residents must boil tap water before using for drinking, making ice, washing dishes, brushing teeth and preparing food until further notice.

The boil water advisory applies to the entire City of Greenville Public Water System.

Tap water should be brought to a rolling boil for at least one minute, according to a release issued Saturday evening.

The advisory was issued due to high turbidity, or cloudiness, in the water supply.

The water plant routinely monitors water for turbidity to make sure it is properly filtered. Samples taken Saturday had higher levels for about seven minutes due to a mechanical failure. 

“Because of the elevated turbidity, there is an increased chance that your drinking water may contain harmful microbes,” the release stated.

Crews are in the area to collect water samples.

The boil advisory likely will remain in effect for the next three or more days until the quality of the water can be determined.

For more information, contact the City of Greenville Water Department at 937-548-2415 or the Greenville Utility Billing Department at 937-548-1815.