On April 17, 2012, a federal grand jury returned a four count indictment charging Beverly S. Beavers and James E. Beavers of Knoxville, Tenn., with conspiracy to defraud the United States and filing false claims for tax refunds, the Justice Department and the Internal Revenue Service (IRS) announced today.
According to the indictment, Beverly and James Beavers filed a false 2008 personal tax return that was prepared by Penny Jones, a partner in PMDD Services LLC, an Idaho-based tax return preparation firm. Their 2008 return claimed a tax refund of $591,123 to which they were not entitled. Upon receiving the fraudulent refund, the indictment alleges that the Beavers paid $59,405 to Jones and the other principals of PMDD Services. Later, the Beavers allegedly filed amended tax returns for 2006 and 2007, seeking fraudulent tax refunds of $193,056 and $202,625, respectively, for those years.
The Beavers are also alleged to have taken steps to hide their assets from possible IRS collection efforts, including transferring the real estate title to their personal residence and Beverly Beavers’ store to nominee trusts.
Jones, other alleged principals of PMDD Services, and several other persons were charged in the Southern District of Florida in November 2011 with tax crimes, including conspiracy to defraud the United States and filing false claims. That case is scheduled for trial in October 2012. In July 2011, a federal court in Idaho permanently enjoined Penny Jones from filing federal tax returns on behalf of others.
The indictment alleges that Beverly Beavers owned a formalwear store in Knoxville and that James Beavers was previously employed as the research director of an academic engineering institute at the University of Tennessee, and as a private engineering consultant.
If convicted, the defendants each face a maximum potential sentence of 20 years imprisonment and a criminal fine up to $1 million. Both defendants may also be required to pay restitution to the IRS.