European Stars And Stripes (Newspaper) - March 14, 1986, Darmstadt, Hesse Miami up postal inspectors charged 93 grocers wednesday with participating in a $186 million Coupon redemption fraud ring that agents broke in operation clip using coupons for a non existent Roach Spray. Inspectors said the suspects redeemed millions of Cou Pons through commercial clearinghouses collecting re funds from manufacturers for discounts they supposedly gave customers who purchased the products. The fact of the matter is the Consumers never even handled the coupons nor were the products Ever Pur chased said Mark Grey Miami s top postal inspector. The grocers obtained numbers of coupons from inde pendent newspaper distributors and printing Ware houses and set up a regular cottage Industry of peo ple to clip and sort coupons in their Homes Grey said. Poker player wins irs suit Reno Nev. A a Man who made $1.2 million Over four years playing poker will get a $178,000 Federal tax refund under a judge s ruling that he is a professional businessman entitled to the same tax Breaks As other self employed people. The internal Revenue service had argued that Billy Baxter of Las vegas does not offer services or goods As a profession and that therefore his gambling winnings Are unearned income under Federal Law that can be taxed at a higher rate. . District judge Bruce Thompson ruled tuesday that there is a difference Between Money won in games of skill As poker and games of Chance As Slot machines. The judge said Baxter who specializes in Low Ball poker was engaged in a business or Trade when he played poker. Clearly Baxter s $1.2 million gaming income for the years at Issue was not derived from his passive investment of capital in a series of risky ventures Thompson said. Baxter consistently won at poker because he possesses extraordinary poker skills. Any argument that Baxter s gaming income is not based upon his personal expenditure of time Energy and skill is Baxter s attorneys compared their client s income to that of professional golfers or Tennis pros who Are treated by the irs As businessmen. Irs attorney Christopher Rizek had argued that even the Best poker player relies on the Luck of the the irs May Appeal the ruling. Cops arrest 2 coeds find nude photos Friday March 14, 1986 the stars and stripes Page 7 bust Coupon fraud ring they then mailed them to the clearinghouses using the names and addresses of nonexistent food stores As Well As the supermarkets where they worked Grey said. Investigators identified 250 ring members nationwide he said. Warrants were issued charging 93 people 69 in Florida 16 in Southern California and eight in Charleston s.c., with fraud conspiracy and racketeering. By 3 . Wednesday 53 had been arrested in Florida four in South Carolina and nine in California. Additional charges will be filed in those states and new York said postal inspector . Willoughby. Members of the ring collected $1 million a week in fraudulent refunds and handling fees Grey said. For the past several years Between 700 and 800 retail grocery merchants acting in concert defrauded the grocery Industry of More than $686 million he said. Postal inspectors set up operation clip an under cover investigation 18 months ago when a Clearinghouse official reported he had been offered a 50-percent kick Back if he would cooperate in a Coupon scheme. Agents infiltrated the ring gathered evidence then set up the sting with the cooperation of Lee s marketing a Coupon Clearinghouse in Mont Prospect 111. They printed 25-cents-off coupons for a non existent Roach Spray which they named broach inserted the coupons into newspapers in Southern Florida and arranged for Lee s marketing to redeem them. Although the product did not exist thousands of the coupons were redeemed by grocers All Over the country. Giving the foe the old heave Hoap photo Lucille Jeffrey Thompson 89, demonstrates How to defend herself during her test for a Black Belt in Tae Kwon do at Han s Tae Kwon do Academy in Dan Ville Iii. Thompson said she turned to karate for exercise. She passed the test and reportedly is one of the oldest people to earn the Black Belt. She says she s just sorry i did t learn about it until i was 88." Thompson turns 90 on sunday. Ivy league prostitution probed Providence . Up the seizure of More than 100 photographs of women from an insurance agent s luxury condominium has widened an investigation into a suspected prostitution ring in which two Brown University coeds were arrested police said. Investigators uncovered the sex scheme after raiding the Home of Stanley Henshaw Iii who lives near the Ivy league Campus and seizing the photographs of women in various stages of undress police chief Anthony Mancuso said. Forty six women Are included in the pictures Mancuso said. Henshaw has not been arrested in the Case Mancuso said and refused to say if Henshaw is the target of the probe. There May not be a prostitution ring As we know a prostitution ring to be Mancuso told a news conference. We Don t know where the investigation is going to Lead us. We re just beginning. There could be More to Henshaw denied any involvement in a prostitution ring. Sex for $150 the innuendos presented of my being involved in a prostitution ring Are absurd and false Henshaw said in an interview. I highly deny the Brown University officials requested the police investigation that led to the arrest March 7 of two students Dana Smith of Avon conn., and Rebecca Kidd of Orange conn., both 21. The women both seniors at the prestigious University Are accused of offering to have sex with inspector Malcolm Brown of the City s special operations group for $ 150. Investigators have identified 15 of the 46 women in the pictures including eight More Brown University coeds two juveniles two women from Johnson and Wales College in Providence and three non College women Mancuso said. Six of the identified women have been interviewed by police and five of them two of them Brown coeds have indicated they were involved in some Type of prostitution not necessarily involving the alleged ring Mancuso said. One of the juveniles is a 17-year-old from Rhode Island and the other is a 14-year-old from Massachusetts the chief said. Advertised services i have no comment really said Henshaw an insurance agent with Worrell Passananti & Radoccia inc., whose condominium on Providence s affluent East Side was raided after Smith and Kidd were arrested. Mancuso said Brown officials notified police in septem Ber of suspected prostitution at the school but the depart ment s investigation of Smith and Kidd did not begin until the women allegedly began placing thinly veiled advertise ments in a local weekly newspaper. Mancuso said a grand jury investigation was Likely and he was trying to obtain copies of a defunct local weekly newspaper where ads purportedly were placed by women. Brown University has denied that any prostitution ring was entered on the school Campus but the student Bod was buzzing. It shows we Are a progressive school freshman Kevin Sullivan of Walpole mass., said jokingly. It s just two girls out of 5,000 Many students brushed aside the sex scandal claiming it will not Hurt the school s reputation. Senior Lawrence of Weston conn., said everyone wants to go Home and look Smith s and Kidd s faces up in the school yearbook to see if they know who they Tower to teach at Alma mater Washington a former sen. John g. Tower said wednesday he has quit As a . Arms control negotiator to teach at Southern methodist University and to explore various business opportunities. I have found my work challenging engrossing and Gratifying Tower said in a statement. I have been privileged to be associated with the Best professional team inthe arms control Tower was appointed by president Reagan 14 months ago to handle negotiations with the soviets in Geneva Switzerland on curbing Long Range nuclear weapons. Ambassador Max m. Kampelman is in charge of the Ameri can contingent. The talks recessed last week in near deadlock. . Officials said on monday that Tower had decided to resign for personal family reasons and also because he found the Job Dull. His statement denied he was quitting due to frustration with the substantive Progress in Geneva. The negotiation of an arms control agreement is by nature a Complex lengthy and difficult pro Cess which requires a great Deal of patience Tower said. Tower he made no reference to personal reasons for submitting the resignation. Though a successor has not been named several . Officials said that Ron Lehman an arms expert who has worked at the Pentagon and at the National Security Council is a leading candidate
