Sovereign Citizen from Utah Convicted in Fraud Scheme
PHILADELPHIA—A federal jury, yesterday, handed up guilty verdicts against Robert G. Wray, 75, of Torrey, Utah, on charges that he conspired with a Lehigh County doctor of osteopathy to defraud the Department of Health and Human Service and the Internal Revenue Service. The fraud scheme, in which Wray participated, amounted to hundreds of thousands of dollars. Wray was found guilty of one count of conspiracy, 30 counts of wire fraud, one count of bankruptcy fraud, and one count of failure to appear.
Wray uses many different names for himself in an attempt to evade federal and other laws by arguing that he has not been properly identified in legal documents. Wray also claims to be a “sovereign” citizen who is not subject to federal laws, including laws regarding personal income taxation. Wray conspired with Dr. Dennis Erik Fluck Von Kiel, of Macungie, Pennsylvania, to help Dr. Von Kiel evade a six-figure debt he owed to HHS for unpaid medical school loans and avoid paying personal income taxes to the IRS. Dr. Von Kiel pleaded guilty and was sentenced, on April 20, 2015, to 41 months in prison. Von Kiel was also ordered to pay restitution to the IRS in the amount of $256,920, to the Department of Health and Human Services in the amount of $262,303.11 to the Department of Education in the amount of $36,314, forfeiture of $165,988.29, and a $1,325 special assessment.
Wray faces a possible advisory sentencing guideline range of 51 to 78 months in prison, three years of supervised release, restitution and a $3,300 special assessment. A sentencing hearing is scheduled for September 2, 2015.
The case was investigated by the IRS Criminal Investigations and the FBI. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.