Friday, May 31, 2013

Lea'Tice Phillips Pleads Guilty in Stolen Identity Refund Fraud Scheme


Source- http://www.justice.gov/tax/2013/txdv13623.htm

WASHINGTON – Lea'Tice Phillips, of Montgomery County, Ala., pleaded guilty today to one count of wire fraud and one count of aggravated identity theft for her role in a stolen identity refund fraud scheme, the Justice Department and the Internal Revenue Service (IRS) announced today.

According to the court documents, Phillips worked for an Alabama state agency and had access to state databases which contained means of identification of individuals. Between October 2009 and April 2012, Phillips conspired with Antoinette Djonret and others to file false tax returns using stolen identities. On multiple occasions, Phillips accessed a state database to obtain means of identification and used her state email to send means of identification to Djonret. Djonret and others used those means of identification to file false tax returns mostly from Djonret's residence in Montgomery, Ala. Djonret and her co-conspirators used an elaborate network of individuals to launder the tax refunds. They recruited individuals to purchase prepaid debit cards and to provide the cards to them. Fraudulently obtained tax refunds were directed to the prepaid debit cards that Djonret and her co-conspirators used to obtain the proceeds. Some of the prepaid debit cards were in the name of Phillips. In total, Djonret filed over 1,000 false tax returns that claimed over $1.7 million in fraudulent tax refunds.

The sentencing of Phillips has not yet been scheduled. Phillips faces between two and 22 years in prison, three years of supervised release, restitution, and a maximum fine of $750,000, or twice the loss caused by the offense. Djonret was previously sentenced to 144 months in prison.


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Thursday, May 30, 2013

Justice Department Sues to Stop Georgia Tax Return Preparer


Source- http://www.justice.gov/tax/2013/txdv13622.htm

Atlanta Area Return Preparer Allegedly Overstated Refunds through Fabricated and Inflated Deductions and Credits

WASHINGTON – The United States yesterday filed a complaint asking a federal court in Atlanta, Ga., to stop Matthew Adegbite and his companies MAS & Associates CPA, LLC and Mathew A. Adegbite CPA, PC, from preparing federal income tax returns for others, the Justice Department announced today.

The complaint alleges that since at least 2008, Adegbite, who operates out of Tucker, Ga., a suburb of Atlanta, has prepared more than 1,000 returns. The complaint alleges that Adebgite unlawfully understated income tax liabilities and overstated refunds by fabricating and/or exaggerating deductions and tax credits his clients are not eligible to take. Adegbite's practices include fabricating Schedule C losses for non-existent businesses, and falsely claiming the First Time Home Buyer Credit for taxpayers who did not actually purchase a home. Altogether, the government complaint alleges that the loss to the U.S. Treasury from Adegbite’s activities may be in the millions of dollars.


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Wednesday, May 29, 2013

Tracey Montgomery Plead Guilty for Involvement in a Large Scale Stolen Identity Refund Fraud



WASHINGTON – Tracey Montgomery, of Montgomery County, Ala., pleaded guilty today in the U.S. District Court for the Middle District of Alabama to her role in a large scale stolen identity refund fraud, the Justice Department and the Internal Revenue Service (IRS) announced today.

On April 17, 2013, a federal grand jury in Montgomery, Ala., indicted Montgomery on conspiracy and theft of government money charges. According to court documents, Montgomery opened two bank accounts which were used to receive deposits of fraudulent tax refunds. Between August 2009 and February 2011, at least six false federal income tax refunds totaling approximately $49,221 were directed to Montgomery's bank accounts. Montgomery was able to withdraw the false tax refund money before the IRS caught her. The overall scheme Montgomery participated in is alleged to have involved over $500,000 in false refunds. As a result of her plea, Montgomery faces a maximum potential sentence of 10 years in prison.


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Tuesday, May 28, 2013

Rodriquez Thomas Pleads Guilty to his Role in Cashing Fraudulently Obtained Tax Refund Checks


Source- http://www.justice.gov/tax/2013/txdv13601.htm

WASHINGTON – Rodriquez Thomas, of Montgomery County, Ala., pleaded guilty today in the U.S. District Court for the Middle District of Alabama to conspiring to cash fraudulently obtained federal tax refund checks, the Justice Department and the Internal Revenue Service (IRS) announced.

According to court documents, Thomas, along with his co-conspirators, Jesse Johnson and Quanesha Johnson, obtained U.S. Treasury tax refund checks that were issued as a result of the filing of fraudulent tax returns. Thomas and the Johnsons and others cashed approximately 77 fraudulently obtained U.S. Treasury tax refund checks that totaled approximately $137,016 by bringing them to a bank teller, Debora Gray, who worked for a bank in Wetumpka, Ala., and who participated in the scheme.

Jesse and Quanesha Johnson and Debora Gray have all previously pleaded guilty to their involvement and are awaiting sentencing. Thomas faces a maximum sentence of five years in prison for the conspiracy. He is also subject to fines, mandatory restitution and forfeiture.


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Wednesday, May 22, 2013

Michael Parker Sent to Prison for Tax Fraud


Source- http://www.justice.gov/tax/2013/txdv13583.htm

WASHINGTON – Michael Parker, of Baltimore, Md., who was the chief operating officer of TransCapital Corporation, a tax-advantaged investments company based in Northern Virginia, was sentenced yesterday to 54 months in prison by U.S. District Judge Sandra S. Beckwith in Cincinnati, Ohio, the Justice Department and Internal Revenue Service (IRS) announced. In addition, Parker was sentenced to serve three years of supervised release after his release from prison. In December 2009, Parker pleaded guilty to one count of conspiracy to defraud the United States for his role in KPMG's promotion, marketing, and implementation of a tax shelter product known as SLOTS.

According to the plea agreement and statements made during trial and related proceedings before U.S. District Judge Sandra S. Beckwith in Cincinnati, Ohio, Parker admitted to conspiring with others to defraud the IRS with regard to tax shelter transactions. Parker, a CPA and an attorney, acted as the Chief Operating Officer of TransCapital Corporation during the alleged conspiracy. Parker testified at the trial of an accountant who was a tax partner at KPMG, LLC, at its Tysons Corner, Va., office, and an attorney for TransCapital, both of whom were acquitted of conspiracy charges after a four-week jury trial.

According to the plea agreement, trial testimony and other statements, from 1998 through 2006, Parker and others marketed and implemented a tax shelter to KPMG clients called the Sale Leaseback of Tenant Improvements Strategy (SLOTS). The SLOTS shelter enabled client corporations to claim tax deductions totaling more than $240 million on corporate income tax returns filed with the IRS. During 2002 through 2004, the IRS audited three U.S. corporations that had claimed losses generated by SLOTS transactions, including The Kroger Company. Parker identified Kroger as the Fortune 500 corporation that did the largest SLOTS tax shelter transaction, and which claimed over $178 million in loss deductions, causing over $64 million in tax loss to the IRS. Parker admitted that he and the others conspired to impede and impair the IRS by making false and misleading statements to IRS agents and attorneys during these audits, including the Kroger audit. Additionally, Parker admitted that he and others concealed certain aspects of the tax shelter transaction from SLOTS clients, including Kroger, for the purpose of impeding and impairing the IRS. Parker further acknowledged that the SLOTS tax shelter and related transactions were themselves nothing more than devices to disguise and conceal mere financing transactions.


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Sunday, May 19, 2013

Drs. David Leon Fredrick and Patricia Lynn Hough Indicted for Federal Tax Crimes


Source- http://www.justice.gov/tax/2013/txdv13571.htm

Doctors Maintained Offshore Bank Accounts at UBS and Other Foreign Banks that Concealed Income and Assets from the IRS

WASHINGTON – Drs. David Leon Fredrick and Patricia Lynn Hough, of Englewood, Fla., were indicted by a federal grand jury in Fort Myers, Fla., for conspiring to defraud the Internal Revenue Service (IRS) by concealing millions of dollars in assets and income in offshore bank accounts at UBS and other foreign banks, the Department of Justice and IRS announced today.

According to the indictment, Fredrick and Hough, married doctors, served on the Board of Directors of two Caribbean-based medical schools – one located on Saba, Netherlands Antilles, and one located on Nevis, West Indies. Fredrick had an ownership interest in the medical school on Nevis until 2007, when both medical schools were sold.

The indictment alleges that Fredrick and Hough conspired with each other and with Beda Singenberger, a citizen and resident of Switzerland who is under indictment in the Southern District of New York, and a UBS banker to defraud the IRS. They carried out the conspiracy by creating and using nominee entities and undeclared bank accounts in their names and the names of the nominee entities at UBS and other foreign banks to conceal assets and income from the IRS, including the sale of real estate associated with the medical school on Saba and shares they owned in the medical school on Nevis. The real estate was sold for more than $33 million, all of which was deposited into one of their undeclared accounts in the name of a nominee entity.

It is further alleged in the indictment that Fredrick and Hough used emails, telephone and in-person meetings to instruct Swiss bankers and asset managers to make investments and transfer funds from their undeclared accounts at UBS. It is alleged that Fredrick and Hough caused funds from the medical schools' undeclared accounts to be transferred to undeclared accounts in their individual names or in the names of nominee entities. Fredrick and Hough then used the funds in their undeclared accounts to purchase an airplane, two homes in North Carolina and a condominium in Sarasota, Fla. Fredrick also transferred more than $1 million to his relatives.

Fredrick and Hough were also charged with four counts of filing false tax returns for 2005, 2006, 2007 and 2008. The indictment alleges that Fredrick and Hough filed false tax returns which substantially understated their total income and failed, on Schedule B, Parts I and III, to report that they had an interest in or signature or other authority over bank, securities or other financial accounts located in foreign countries. U. S. citizens, resident aliens and legal permanent residents of the United States have an obligation to report to the IRS on the Schedule B of a U.S. Individual Income Tax Return, Form 1040, whether they had a financial interest in, or signature authority over, a financial account in a foreign country in a particular year by checking "Yes" or "No" in the appropriate box and identifying the country where the account was maintained. U. S. citizens and residents also have an obligation to report all income earned from foreign bank accounts on their tax returns.

A trial date has not been scheduled. An indictment is merely an accusation, and every defendant is presumed innocent unless and until proven guilty.

The conspiracy charge carries a maximum potential penalty of five years in prison and a $250,000 fine. The false return charges each carry a maximum potential penalty of three years in prison and a $250,000 fine.


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Saturday, May 18, 2013

Larreka Jackson Receives Four Years in Prison in Stolen Identity Refund Fraud Scheme


Source- http://www.justice.gov/tax/2013/txdv13580.htm

WASHINGTON – Larreka Jackson was sentenced yesterday to 48 months in prison for her role in a multi-million dollar conspiracy to use stolen identities to obtain tax refunds, the Department of Justice and the Internal Revenue Service (IRS) announced today. Jackson was also ordered to pay restitution in the amount of $721,519.12. In January 2013, Jackson pleaded guilty to one count of conspiracy to file false claims and one count of aggravated identity theft.

On Aug. 15, 2012, a federal grand jury in Montgomery, Ala., returned a 25-count indictment charging Larreka Jackson with conspiring to file false tax returns using stolen identities, filing false claims, wire fraud and aggravated identity theft. According to court documents, Jackson and Chiquanta Davis operated a tax preparation business called It’s Tax Time in Montgomery, Ala. Jackson and Davis used It’s Tax Time as a front to file false tax returns using stolen identities. Jackson and Davis unlawfully obtained the names and Social Security numbers of actual persons and filed false tax returns using those names. Jackson directed the fraudulent tax refund to bank accounts controlled by her and her co-conspirators.

Chiquanta Davis was previously sentenced to 66 months in prison for her role in the conspiracy.


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Friday, May 17, 2013

Mosii Mays Blackwell Pleads Guilty to Bank Fraud and Obstructing the Internal Revenue Service


Source- http://www.justice.gov/tax/2013/txdv13574.htm

WASHINGTON – Mosii Mays Blackwell, of Detroit, Mich., pleaded guilty in the Eastern District of Michigan to obstructing the Internal Revenue Service (IRS) and bank fraud, the Justice Department and the IRS announced today.

According to the information and other documents filed in court, from April 2004 to December 2012, Blackwell failed to report to the IRS over $4.5 million in gross receipts generated by Detroit area businesses that he operated and controlled through various entities, such as the Detroit Manufacturing Group, Moci Jeans, Arzel Corp., Renaissance Contractors and Greentree Entertainment Group, LLC.

In addition, the information states that on November 5, 2004, Blackwell executed a bank fraud scheme by causing a loan application to be submitted to mortgage lender that falsely reported the applicant was employed by one of his business entities at a salary of $18,000 each month.

Blackwell faces a maximum potential sentence of 33 years in prison and a fine of up to $1,250,000.


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Thursday, May 16, 2013

Glenn Powell Jr. for Involvement in a Large Scale Stolen Identity Refund Fraud


Source- http://www.justice.gov/tax/2013/txdv13572.htm

WASHINGTON – Glenn Powell Jr. pleaded guilty today in the Middle District of Alabama to his role in a large scale stolen identity refund fraud, the Justice Department and the Internal Revenue Service (IRS) announced.

On April 17, 2013, a federal grand jury in Montgomery, Ala., indicted Powell on conspiracy and theft of government money charges. According to court documents, Powell opened two bank accounts on which he was the only authorized signer. Between August 2009 and February 2011, at least 49 false federal income tax refunds totaling approximately $95,926 were directed to Powell's bank accounts. Powell was able to withdraw approximately $46,423.71 in false tax refunds before the IRS stopped him. The overall scheme Powell participated in is alleged to have involved over $500,000 in false refunds.

As a result of his plea, Powell faces a maximum potential sentence of 10 years in prison.


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Wednesday, May 15, 2013

Steven Kern Sentenced for Tax Fraud


Source- http://www.justice.gov/tax/2013/txdv13556.htm

WASHINGTON – Steven Kern, of Marine City, Mich., was sentenced to serve one year and one day in prison by U.S. District Court Judge Arthur J. Tarnow in the Eastern District of Michigan, the Justice Department and Internal Revenue Service (IRS) announced. On January 28, 2013, Kern pleaded guilty to an indictment charging him with eight counts of filing false corporate tax returns and eight counts of failing to file his individual income tax returns.

According to court documents, Kern operated the Kern Chiropractic Center in Marine City. From 2003 through 2010, Kern filed false corporate returns for Kern Chiropractic that did not include as gross receipts cash and check payments that Kern diverted from the business for his own personal use. During the same years, Kern failed to file individual tax returns, despite earning more $1.2 million in gross income during that time period. Filed court documents and court proceedings further established that Kern has not filed an individual federal income tax return since 2002 and told IRS – Criminal Investigation special agents he believed signing and filing a completed individual federal tax return was a violation of his constitutional rights.


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Tuesday, May 14, 2013

Safieh Fard Sentenced to Prison for Tax Fraud


Source- http://www.justice.gov/tax/2013/txdv13551.htm

WASHINGTON – Safieh Fard, 52, of Escondido, Calif., was sentenced late yesterday to 63 months in prison by U.S. District Judge Cormac J. Carney. Fard was also ordered to pay $594,000 in restitution to the Internal Revenue Service (IRS) for unpaid individual income taxes. Assistant Attorney General for the Justice Department's Tax Division Kathryn Keneally, U.S. Attorney Andre Birotte Jr., and the IRS made the announcement.

Fard was convicted by a Santa Ana, Calif., jury on Nov. 21, 2012, of one count of conspiracy to defraud the IRS and one count of conspiracy to launder the proceeds of bank fraud. Fard's co-conspirators, her sister Sedigheh Bahramian, and two of her sons, Mohsen Kikalaye and Ahmad Kikalaye, pleaded guilty and were sentenced to related counts of bank fraud in 2010.

According to the indictment and evidence introduced at trial, starting in 1997 and continuing through 2004, Fard and her co-conspirators purchased valuable residential real estate properties, including numerous beachfront properties in Newport Beach, Calif. To obtain mortgages to purchase these properties, Fard and her co-conspirators provided false information to federally insured banks that substantially overstated their income and assets on mortgage applications. Fard submitted mortgage applications that falsely stated she earned over $40,000 per month, despite claiming no taxable income on her federal income tax returns during the eight year conspiracy.

Evidence introduced at trial established that Fard and her co-conspirators bought, sold, and transferred ownership of the properties between and among themselves. Ultimately, the properties were sold to third parties resulting in substantial monetary gain. Fard and her co-conspirators then failed to report capital gains on more than $3.7 million from these sales on their federal income tax returns.

The evidence further established that Fard and her co-conspirators Mohsen Kikalaye and Ahmad Kikalaye sold Newport Beach properties to unrelated third parties and received the proceeds in a large lump-sum payment by either wire transfer or check. Fraud proceeds were then transferred through multiple bank accounts to an account in the name of Fard's co-conspirator Ahmad Kikalaye, who withdrew proceeds in cash in amounts slightly below the $10,000 federal reporting requirement. Fraud proceeds were also used to buy new real estate properties.


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Monday, May 13, 2013

Michael George Fitzpatrick Sentenced to Prison for Tax Evasion


Source- http://www.justice.gov/tax/2013/txdv13549.htm

WASHINGTON ΓΆ€“ Michael George Fitzpatrick, 51, of Hope, Idaho, was sentenced to 42 months in prison by U.S. District Judge Larry A. Burns, the Justice Department and Internal Revenue Service (IRS) announced today. Fitzpatrick was also ordered to serve three years super vised released and to pay just under $1.4 million in restitution to the IRS for unpaid individual and corporate federal income taxes.

Fitzpatrick was convicted of two counts of tax evasion in January 2013 by a Coeur d’Alene, Idaho, jury. A previous jury had convicted him in September 2012 on two counts of failure to file corporate income tax returns but was unable to reach verdicts on the tax evasion counts. Fitzpatrick was remanded into custody immediately after the second trial.

According to the indictment and evidence introduced at both trials, Fitzpatrick operated a business selling products which purported to help individuals eliminate credit card debt. During 2003 and 2004, gross sales from the business, operating under the names Dynamic Solutions Inc. (DSI) and North American Educational Services Inc. (NAES), exceeded $9 million. At trial the government proved the corporations failed to report $3.7 million and Fitzpatrick himself failed to report over $500,000 in income, resulting in a total tax loss of $1,397,762.

The evidence further established that Fitzpatrick last filed an individual income tax return in 1996. At trial, Fitzpatrick argued at length that the income tax laws did not apply to him. However, the evidence showed he expended significant time and expense to put all of his property in the names of nominees.

The evidence at trial also established Fitzpatrick sent over $5 million offshore to a bank located in the Dominican Republic. Fitzpatrick accessed this money through the use of a debit card and through wire transfers. During this two-year period Fitzpatrick used over $1 million of his money hidden offshore to buy real estate and to gamble in Las Vegas on nine separate trips to the Bellagio Casino. He also paid a contractor to build a schoolhouse for his kids in his backyard in Hope, Idaho.

“This case sends a strong message that those who defy our nation's tax laws will be investigated and prosecuted to the fullest extent of the law,” said Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally. “The sentence imposed today demonstrates that anyone who attempts to evade taxes by hiding assets in offshore bank accounts faces significant time in prison for these crimes.”

“Paying taxes is a solemn obligation of citizenship,” said U.S. Attorney Wendy J. Olson. “Mr. Fitzpatrick’s conviction and sentence make clear that those who try to hide income or knowingly and falsely claim that the income tax laws do not apply to them will be prosecuted and ordered to pay. I commend the fine work of the Tax Division lawyers and the IRS criminal investigators in this case.”

“The license to run a business is not a license to avoid paying taxes,” said IRS Criminal Investigation Chief Richard Weber. “Today, Mr. Fitzpatrick has been held accountable for his actions of dodging his legal tax responsibilities to report all his income and pay his fair share of taxes. No one should doubt that IRS is committed to pursuing people hiding income offshore.”


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Friday, May 10, 2013

Midtown Tax Return Preparers Allegedly Prepare Fraudulent Tax Returns


Source- http://www.justice.gov/tax/2013/txdv13529.htm

WASHINGTON – The United States has asked a federal court in St. Louis, Mo., to permanently bar Joseph Burns, d/b/a Electronic Tax Service, Joseph Thomas and International Tax Service Inc. (Thomas's business), from preparing federal tax returns for others, the Justice Department announced today. The civil injunction suit alleges that Burns and Thomas, who previously worked together, prepare fraudulent tax returns for customers from the same office building in the midtown neighborhood of St. Louis.

According to the complaint, the defendants repeatedly fabricate deductions on customers' returns and report false filing statutses in order to illegally lower their customers' federal tax liabilities and to generate larger tax refunds. The government alleges that the defendants also prepare returns containing bogus Schedule C income which illegally allows some customers to claim the maximum earned income tax credit. Based on past audit results, the government alleges that the loss to the U.S. Treasury caused by these defendants' ongoing return preparation activities could be as much as $6 million annually.


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Tuesday, May 7, 2013

Corey Thompson Sentenced for Tax Fraud


Source- http://www.justice.gov/tax/2013/txdv13518.htm

WASHINGTON – Corey Thompson was sentenced today to serve 30 months in prison for his involvement in a sophisticated stolen identity refund fraud conspiracy, the Justice Department and the Internal Revenue Service (IRS) announced. In July 2012, Thompson pleaded guilty to one count of conspiracy to file false claims and to one count of aggravated identity theft.

According to court documents, in January 2012, Thompson and his co-conspirators filed at least 27 fraudulent 2011 tax returns that requested a total of $91,304 in refunds. Thompson and his co-conspirators obtained the means of identification from a prison guard and from an employee at a debt collection agency.

Court documents also state that in 2011 and 2012, Thompson worked as an independent contractor for a cable company. As an independent contractor, Thompson installed cable and internet access. To perpetrate the conspiracy, Thompson hijacked the internet service of customers for whom he had performed work. From his home, Thompson used his laptop and his specialized knowledge and equipment to essentially shut down the customer’s internet and then take over that customer's internet. Thompson would then file false tax returns using the hijacked internet which made it appear as if the false tax returns were being filed by the customer. Thompson directed the tax refunds to be placed on pre-paid debit cards. The pre-paid debit cards were intercepted by the U.S. Postal Service.

The case was investigated by Special Agents of the IRS - Criminal Investigation and Postal Inspectors of the U.S. Postal Service. Trial attorneys Jason H. Poole, Justin Gelfand and Michael Boteler of the Justice Department's Tax Division and Assistant U.S. Attorney Jared Morris prosecuted the case.


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Monday, May 6, 2013

Federal Court in California Shuts Down Tax Preparer


Source- http://www.justice.gov/tax/2013/txdv13501.htm

WASHINGTON – A federal court in Los Angeles has entered an order permanently barring Simon Jenkins from preparing federal income tax returns and other tax-related documents for others, the Justice Department announced today. Jenkins, who operated under the business name "Jenkins Tax Service" in Gardena, Calif., consented to the civil injunction order, which was signed by U.S. District Judge Dean D. Pregerson.

The government complaint, filed on Feb. 1, 2013, alleged that Jenkins engaged in a pattern of claiming false deductions, false credits, false expenses, and false claims for refunds on behalf of his customers for the tax years 2004 through 2008, causing the government to incur a tax loss of $238,024 for those years.

In addition to barring Jenkins from preparing tax returns, Judge Pregerson also required Jenkins to contact his customers and inform them of the entry of the permanent injunction within 30 days.

As noted in the complaint, in a prior related criminal proceeding, Jenkins pleaded guilty to one count of aiding and assisting in the preparation and presentation of false income tax returns. According to the plea agreement, filed in the criminal case on June 15, 2011, Jenkins agreed to enter into a binding civil injunction, barring him for life from aiding or assisting in the preparation of federal income tax returns for anyone other than himself and his legal spouse, and barring him from representing persons before the Internal Revenue Service.


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Saturday, May 4, 2013

Simon Jenkins Pleads Guilty in Tax Returns Fraud.


Source- http://www.justice.gov/tax/2013/txdv13501.htm

WASHINGTON – A federal court in Los Angeles has entered an order permanently barring Simon Jenkins from preparing federal income tax returns and other tax-related documents for others, the Justice Department announced today. Jenkins, who operated under the business name "Jenkins Tax Service" in Gardena, Calif., consented to the civil injunction order, which was signed by U.S. District Judge Dean D. Pregerson.

The government complaint, filed on Feb. 1, 2013, alleged that Jenkins engaged in a pattern of claiming false deductions, false credits, false expenses, and false claims for refunds on behalf of his customers for the tax years 2004 through 2008, causing the government to incur a tax loss of $238,024 for those years.

In addition to barring Jenkins from preparing tax returns, Judge Pregerson also required Jenkins to contact his customers and inform them of the entry of the permanent injunction within 30 days.

As noted in the complaint, in a prior related criminal proceeding, Jenkins pleaded guilty to one count of aiding and assisting in the preparation and presentation of false income tax returns. According to the plea agreement, filed in the criminal case on June 15, 2011, Jenkins agreed to enter into a binding civil injunction, barring him for life from aiding or assisting in the preparation of federal income tax returns for anyone other than himself and his legal spouse, and barring him from representing persons before the Internal Revenue Service.



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Friday, May 3, 2013

Federal Court in California Shuts Down Tax Preparer


Source- http://www.justice.gov/tax/2013/txdv13494.htm

WASHINGTON – A federal court in Los Angeles has entered an order permanently barring John Trunzo from preparing federal income tax returns and other tax-related documents for others, the Justice Department announced today. Trunzo, who operated under the business names "Your Taxman John Trunzo," "Your Taxman" and "YTJT" in Los Angeles County, consented to the civil injunction order, which was signed by U.S. District Judge Michael W. Fitzgerald.

The government complaint, filed on Feb. 14, 2013, alleged that Trunzo under reported gross receipts on his own income tax returns filed for the tax years 2005 – 2007, causing the government to incur a tax loss of $67,231 for those years. The complaint further alleged that Trunzo provided the Internal Revenue Service (IRS) with false documents in order to convince auditors that his clients had incurred expenses that Trunzo knew they had not incurred, and were entitled to deductions that Trunzo knew were fabricated, which obstructed and impeded the IRS from determining his clients' true tax liability.

In addition to barring Trunzo from preparing tax returns, Judge Fitzgerald also required Trunzo to create a website to inform his customers of the entry of the permanent injunction within thirty days.

As noted in the complaint, Trunzo was previously charged with one count of subscribing to a false income tax return. He entered a guilty plea to this charge. According to the plea agreement, filed in the criminal case on July 9, 2012, Trunzo agreed to enter into a binding civil injunction, barring him for life from aiding or assisting in the preparation of federal income tax returns for anyone other than himself and his legal spouse, and barring him from representing persons before the IRS.



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Thursday, May 2, 2013

Bridgette Rivers, Alabama Resident Indicted in Stolen Identity Refund Fraud Scheme


Source- http://www.justice.gov/tax/2013/txdv13491.htm

WASHINGTON – Bridgette Rivers, a resident of Montgomery, Ala., was indicted by a federal grand jury on charges of conspiracy and theft of government funds related to her participation in a scheme to use stolen identities to file fraudulent tax returns, the Justice Department and the Internal Revenue Service (IRS) announced today.

According to the indictment, Rivers provided identity information to co-conspirators, who then used the stolen identities, among other identities, to file false tax returns that fraudulently requested tax refunds from the IRS. Rivers is also alleged to have recruited another individual to provide her bank account information for use in the conspiracy. Fraudulently obtained tax refunds allegedly went into that individual’s bank account and the individual would then withdraw the money to give to Rivers.

An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Rivers faces a maximum potential sentence of 10 years in prison for the conspiracy charge and each theft of public funds charge. She would also be subject to fines, mandatory forfeiture and restitution if convicted.



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Wednesday, May 1, 2013

Shatoubrioune Hare George Indicted for Cashing Fraudulently Obtained Tax Refund Checks


Source- http://www.justice.gov/tax/2013/txdv13490.htm

WASHINGTON ΓΆ€“ A federal grand jury returned an indictment charging Shatoubrioune Hare George, a.k.a. “Tobie,” with conspiring to cash fraudulently obtained federal tax refund checks, the Justice Department and the Internal Revenue Service (IRS) announced today. The six-count indictment charges George, of Montgomery, Ala., with conspiracy to commit theft of public funds and with theft of public funds.

According to the indictment, George and others obtained federal tax refund checks issued by the IRS as a result of the filing of fraudulent tax returns. She and others cashed 77 fraudulently obtained U.S. Treasury tax refund checks totaling approximately $137,000 through a bank teller who worked for a bank in Wetumpka, Ala.

An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, George faces a potential maximum of five years in prison for the conspiracy count and 10 years in prison for each theft of public funds count. She is also subject to fines, mandatory restitution and forfeiture if convicted.



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