Hassan-Gouda Convicted of Preparing False Tax Return

Source- http://www.justice.gov/tax/2013/txdv13419.htm

WASHINGTON – Ashraf Hassan-Gouda, a former resident of Mays Landing, N.J., pleaded guilty to one count of assisting in the preparation of a false federal individual income tax return, the Justice Department and Internal Revenue Service (IRS) announced today. Hassan-Gouda was charged by a federal indictment returned on March 27, 2007.

According to court documents, during 2003, Hassan-Gouda was the owner of Tax World, a tax preparation business located in Atlantic City, N.J. Hassan-Gouda prepared the false tax return for a client at his business.

The matter had been scheduled for trial beginning May 6, 2013 before U.S. District Court Chief Judge Jerome B. Simandle in Camden, N.J. Sentencing is scheduled for June 17, 2013. Hassan-Gouda faces a maximum potential sentence of three years imprisonment and a fine of up to $250,000.

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Justice Department Seeks to Shut Down Mo'Money Taxes Return-Preparation Fir and Its Owners

Source- http://www.justice.gov/tax/2013/txdv13412.htm

WASHINGTON – The United States has filed a civil injunction lawsuit seeking to shut down Mo' Money Taxes, a Memphis, Tenn., based tax-preparation chain that at one time operated as many as 300 offices in 18 states, the Justice Department announced today. The United States accuses Mo' Money Taxes and its owners, Markey Granberry and Derrick Robinson, and store manager Eumora Reese of creating and maintaining a business environment that encourages the preparation of fraudulent federal income tax returns.

The government suit alleges that the defendants promote a culture that favors volume and profits over accuracy and integrity, and creates an environment where fraudulent return preparation and tax-law violations flourish. According to the complaint, Mo' Money Taxes' managers, licensees and employees prepare fraudulent returns that cause their customers to incorrectly report their federal tax liabilities and underpay their taxes and charge customers bogus and unconscionably high fees.

The complaint alleges that the defendants style themselves as savvy marketers and promoters of the Mo' Money Taxes brand and image – as evidenced by their commercials – and that Granberry and Robinson decided to change the business's name following bad publicity in 2012 surrounding customer allegations that Mo' Money Taxes failed to provide tax refunds to customers in a reasonable amount of time, if at all. According to the complaint, Granberry and Robinson now do business under the name Marquis Taxes and, along with Reese, under the name Southern King Taxes.

According to the complaint, the defendants encourage Mo' Money preparers to:
Falsely claim the earned-income credit;
Claim improper filing status;
Claim bogus education credits;
Improperly prepare returns using paystubs rather than employer-issued
W-2 forms;
Fabricate bogus W-2 forms;
File tax returns without customers’ consent;
Sell false and deceptive loan products; and
Charge deceptive and unconscionable fees.

The complaint cites alleged examples of Mo' Money Taxes customers in Memphis; Atlanta; Richmond, Va.; Jackson, Miss.; and Nashville, Tenn., whose returns had such fraudulent claims. The complaint also refers to several state-government actions related to Mo' Money Taxes' sale of refund-anticipation loans and charging of undisclosed or improper fees.

The complaint alleges that the estimated tax loss from fraudulent tax return preparation at Mo' Money Taxes offices in Memphis, Atlanta, Richmond and Jackson in 2011 exceeds $9 million.

Return preparer fraud, claiming false income or expenses to secure larger refundable credits such as the earned-income credit, and identity theft are among the IRS's "Dirty Dozen" Tax Scams for 2013.

"The nation's tax system relies on the integrity of tax preparers," said Kathryn Keneally, Assistant Attorney General for the Justice Department's Tax Division. "Most tax preparers are honest. We owe it to them and to all American taxpayers to use appropriate law enforcement tools to stop those who prepare fraudulent tax returns or who lure customers with deceptive loan products."

"Americans understand that the timely and equitable collection of tax revenues is essential to ensuring the financial security of our citizens and nation as a whole," said Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee. "Those who abuse the tax filing process by fraudulently diverting public revenues into their own pockets are essentially stealing from every American and should expect to be held accountable to the fullest extent of the law."

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Eric Majette Pleads Guilty to Corruptly Endeavoring to Obstruct The IRS and Preparing False Tax Return

Source- http://www.justice.gov/tax/2013/txdv13401.htm

WASHINGTON – Eric Majette, 52, a tax return preparer and owner and operator of the Berrisford Group, located in Somerville, N.J., pleaded guilty today to corruptly endeavoring to obstruct and impede the Internal Revenue laws and to preparing a false tax return, the Justice Department and Internal Revenue Service (IRS) announced.

On Jan. 17, 2013, a federal grand jury sitting in Trenton, N.J., returned a superseding indictment, charging Eric Majette with twenty-nine counts of aiding and assisting in the preparation of false tax returns for clients and one count of corruptly endeavoring to obstruct and impede the Internal Revenue laws. According to the superseding indictment, Majette prepared false tax returns for clients by inflating itemized deductions and credits such as charitable contributions, unreimbursed employee expenses, and energy credits. In addition, when his clients were audited, Majette submitted false charitable contribution receipts to the IRS to support the fraudulent returns that he prepared.

Sentencing has been scheduled for Sept. 24, 2013. The case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Tino M. Lisella and Robert C. Kennedy of the Justice Department's Tax Division are prosecuting the case.

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John Melvin Walker Owner Of Nine Marijuana Stores In Orange And Los Angeles Counties Pleads Guilty To Drug Trafficking And Tax Evasion Charges

Source- http://www.justice.gov/usao/cac/Pressroom/2013/047.html

SANTA ANA, California – A San Clemente man pleaded guilty this morning to federal drug trafficking and tax offenses in relation to a string of nine illegal marijuana storefronts that generated millions of dollars in income.

John Melvin Walker, also known as “Pops,” 56, of San Clemente, pleaded guilty to one count of conspiring to distribute well over a ton of marijuana and to maintain drug-involved premises. He also pleaded guilty to a tax evasion count in a second case that was filed in February.

The investigation into Walker’s chain of marijuana stores was conducted by the Orange County Sheriff’s Department; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; IRS - Criminal Investigation; the California Board of Equalization; and the Orange County District Attorney’s Office.

Walker was one of 14 people named in an indictment returned by a federal grand jury in October (see:http://www.justice.gov/usao/cac/Pressroom/2012/150.html). The indictment outlines a drug-trafficking conspiracy led by Walker, who owned and operated at least nine marijuana stores in cities across Los Angeles and Orange counties. The nine marijuana stores were Alternative Herbal Health in Long Beach, Safe Harbor Collective in Dana Point, Garden Grove Alternative Care in Garden Grove, Santa Ana Superior Care in Santa Ana, Belmont Shore Natural Care in Long Beach, Santa Fe Compassionate Health Care in Santa Fe Springs, Costa Mesa Patients Association in Costa Mesa, the Whittier Collective in Whittier, and APCC in San Juan Capistrano.

Walker, who has two prior felony drug-trafficking convictions from state court, admitted that he directed the managers of his marijuana stores to shred records as part of his effort to conceal from tax authorities income earned from the sale of marijuana. Accordingly, it was routine for Walker’s managers to destroy sales records.

Walker admitted in the federal tax case that he earned approximately $25 million from marijuana sales over the course of six years. Walker specifically admitted that he earned $11.4 million in 2009, but reported to the Internal Revenue Service income of only $200,180 and that he owed $2,656 in taxes. In fact, as Walker admitted in the plea agreement, he owes the IRS $944,133 in relation to the 2009 tax year alone.

In relation to the tax years 2006 through 2011, Walker agreed to pay the IRS more than $2.4 million, as well as $1.8 million in restitution to the California Board of Equalization. In addition to the $4.2 million he has agreed to pay to federal and state tax authorities, Walker has agreed to forfeit to the government $25 million in illegally obtained income, which includes, among other assets, cash, his $1.7 million home in San Clemente, a string of mobile homes in Mammoth Lakes, rental properties in Long Beach, and his interest in two strip clubs.

The plea agreement provides for an enhancement to Walker’s sentence because he possessed firearms in relation to the drug-trafficking offense. Authorities discovered in one of Walker’s “stash houses” an AK-47-style assault rifle, three other firearms and ammunition. During a search of Walker’s residence, authorities also found nearly $400,000 in cash hidden in a safe, as well as another approximately $145,000 in cash throughout the house.

After Walker pleaded guilty to the drug conspiracy and tax evasion charges, he surrendered and is now in federal custody.

United States District Judge James V. Selna is scheduled to sentence Walker on July 22. At sentencing, Walker faces a maximum possible sentence of life in federal prison and a mandatory minimum sentence of 10 years. In the plea agreement, which contemplates a sentence of more than 20 years, Walker agreed not to argue for a sentence of less than 15 years. The actual prison sentence will be determined by Judge Selna.

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Jeffery Deshon Applewhite Charged With Aiding and Assisting The Preparation of False Tax Returns.

Source- http://www.justice.gov/tax/2013/txdv13369.htm

WASHINGTON – A federal grand jury has returned an indictment Thursday charging Jeffery Deshon Applewhite, aka Jeffery Donald Mason, of Los Angeles, with aiding and assisting the preparation and presentation of false and fraudulent federal income tax returns, the Justice Department and Internal Revenue Service (IRS) announced.

According to the indictment, from 2006 through 2011, Applewhite, a certified public accountant who owned and operated tax preparation businesses, including Applewhite and Company, CPA and Mason Financial Services Inc., aided and assisted in the preparation and presentation of false and fraudulent federal income tax returns containing claims for deductions and credits to which his clients were not entitled. Some counts allege that Applewhite used another individual's preparer tax identification number without permission in preparing false federal income tax returns.

The maximum penalty for aiding and assisting the preparation of false claims is three years in prison and a fine of $250,000 for each count of conviction. The maximum penalty for each count of identity fraud is fifteen years and a fine of $250,000.

This case is being investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles O'Reilly and Erin Mellen of the Justice Department's Tax Division are prosecuting the case.

An indictment contains only allegations against an individual and, as with all defendants, must be presumed innocent unless and until proven guilty beyond a reasonable doubt.

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Jeffrey Charles Virginia Nurse Sentenced to Federal Prison for Tax Fraud

Source- http://www.justice.gov/tax/2013/txdv13367.htm

WASHINGTON – Jeffrey Charles, a resident of Grimstead, Va., was sentenced today to serve 46 months in federal prison for conspiring with his daughter and son-in-law to defraud the United States, aiding and assisting in the preparation of false tax returns in his daughter's name, and filing a false tax return in his own name, the Justice Department and the Internal Revenue Service (IRS) announced.

On Nov. 6, 2012, following a six-day jury trial in Newport News, Va., Charles was convicted of one count of conspiracy, three counts of aiding and assisting in the preparation of false tax returns, and one count of filing a false tax return. According to the evidence presented at trial, Charles, a registered nurse and the administrator of a rehabilitation center, conspired with his daughter and son-in-law to impair and impede the IRS in ascertaining, computing, assessing and collecting federal income taxes. The evidence also proved that Charles aided and assisted in the preparation of three false tax returns in his daughter's name for tax years 2000, 2001 and 2005, and attached false documents to each tax return.

Finally, the evidence at trial also established that Charles filed a false tax return in his own name for tax year 2006 in which he allegedly falsely reported earning $0.00 income. Charles joined American Rights Litigators (ARL), a Florida-based organization, and paid ARL to send fraudulent documents to the IRS on his behalf and on behalf of his daughter. In August 2004, a federal district judge permanently enjoined ARL and two of its promoters from the sale of a nationwide tax scam. In August of 2010, three promoters of ARL were each sentenced in the District of Columbia to 10 years in prison along with ARL founder Eddie Ray Kahn, who received a 20 year sentence.

Senior Judge Henry Coke Morgan Jr. also ordered Charles to pay over $300,000 in restitution to the IRS as part of his sentence.

In a separate but related case, Charles's co-conspirators, his daughter and son-in-law Kathryn Miles and John Miles, each pleaded guilty to conspiracy and were sentenced to federal prison.

Assistant Attorney General Kathryn Keneally for the Justice Department's Tax Division commended the investigative efforts of special agents of IRS Criminal Investigation, and Tax Division Trial Attorney Justin K. Gelfand and Assistant U.S. Attorney Brian Samuels, who prosecuted the case.

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Natashia and Detrick Tucker Tax Return Preparers Indicted for Tax Crimes

Source- http://www.justice.gov/tax/2013/txdv13363.htm

WASHINGTON – On March 14, 2013, a federal grand jury in Macon, Ga., returned an 18 count indictment alleging that Natashia and Detrick Tucker, a husband and wife couple who owned and operated a tax preparation business named T&T Express located in Pine Mountain, Ga., conspired to defraud the United States by preparing and filing fraudulent tax returns that illegally claimed inflated tax refunds for their clients. The indictment also charges both of the Tuckers with specific counts of aiding the filing of false tax returns, including Natashia Tucker's personal returns. The Tuckers were arrested and made their initial appearances in court today.

An indictment is merely a formal charge by the grand jury. The defendants are presumed innocent unless and until proven guilty. If convicted of the conspiracy charge, Natashia and Detrick Tucker each face a maximum potential sentence of ten years' imprisonment. Further, they face maximum of three years in prison for each count of conviction for aiding the filing of false tax returns.

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Federal Court Permanently Bars Indiana Firm From Preparing Tax Returns

Source- http://www.justice.gov/tax/2013/txdv13358.htm

Quick Sam Tax Refund of Gary, Ind., and Its Owner, John Newlin, Allegedly Falsified Tax Returns, Costing U.S. Treasury Tens of Millions of Dollars

WASHINGTON – A federal court permanently barred a Gary, Ind., tax-preparation firm and its owner, John Newlin, from preparing tax returns for others, the Justice Department announced today. The civil injunction order, to which Newlin and Quick Sam agreed without admitting the allegations against them, was signed by Judge Jon E. DeGuilio of the U.S. District Court of the Northern District of Indiana.

The government in the civil injunction suit alleged that Newlin's business, Quick Sam Tax Refund, had repeatedly prepared federal income tax returns that unlawfully understated customers' income tax liabilities. According to the complaint, Quick Sam guaranteed its customers that they would receive the largest refund by getting their taxes prepared at Quick Sam. In order to deliver on this promise, the complaint alleges, Quick Sam employees fabricated bogus business expenses, claimed improper tax credits, and reported fictitious dependents to illegally increase customers' tax refunds. Newlin and Quick Sam allegedly gave bonuses to employees for engaging in these fraudulent practices.

Several Quick Sam employees have been accused of fraud in the past, according to the complaint. Charles Standifer, Rhonda Murphy, Chanel Bandy and Brittaney Walker-Lipsey, all former Quick Sam tax return preparers, have pled guilty to tax-related crimes. The complaint alleges that the total harm to the government caused by Newlin and Quick Sam's illegal conduct possibly exceeded $35 million in lost tax revenue.

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Mary Bennett, Narendrakumar Patel and Eugenia Burks Sentenced in Alabama Stolen Identity Refund Fraud Conspiracy

Source- http://www.justice.gov/tax/2013/txdv13357.htm

Conspirators Defrauded Federal Government and Several States

WASHINGTON – Mary Bennett, Narendrakumar Patel and Eugenia Burks, all residents of Elmore County, Ala., were sentenced for their roles in an identity theft and tax fraud scheme. Bennett was sentenced today to 75 months in prison; Patel was sentenced yesterday to 24 months in prison; and Burks was sentenced yesterday to 18 months in prison. Bennett had previously pleaded guilty to conspiracy to commit mail and wire fraud, as well as aggravated identity theft, while Burks also had pleaded guilty to conspiracy. Patel pleaded guilty to forging state securities. Assistant Attorney General for the Justice Department's Tax Division Kathryn Keneally, Acting U.S. Attorney for the Middle District of Alabama Sandra J. Stewart, the U.S. Secret Service and the Internal Revenue Service (IRS) made the announcement.

According to court documents, the defendants were part of a conspiracy to fraudulently obtain both federal income tax refunds as well as state income tax refunds from several different states by using stolen identities to file false tax returns. Fraudulently obtained refund checks were mailed to various addresses used by the conspiracy, while other refunds were obtained through direct deposits into numerous bank accounts controlled by the conspiracy. Bennett admitted to being the one responsible for actually filing the false tax returns and also to storing stolen identity information at her home. Some of the checks obtained by the scheme were cashed by Patel, the former owner of a check-cashing business, who admitted that he knowingly cashed the forged checks and shared in the proceeds.

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Justin D. Schoenauer Idaho Home Builder Sentencend for Tax Evasion

Source- http://www.justice.gov/tax/2013/txdv13355.htm

WASHINGTON – Justin D. Schoenauer, 41, also known as Corey J. Schoenauer, a resident of Twin Falls County, Idaho, was sentenced late yesterday in U.S. District Court for the District of Idaho to 27 months in prison for income tax evasion. Schoenauer was also sentenced to three years of supervised release and ordered to pay $429,436 in restitution. Schoenauer was indicted in February 2012 and pleaded guilty to the offense on Oct. 30, 2012.

According to court documents, Schoenauer was a general contractor who, for the past 10 years, operated a sole proprietorship called Patagonia Construction, a business engaged primarily in building homes. Schoenauer admitted that during tax years 2005 through 2008, he concealed Patagonia's business receipts. Schoenauer further admitted that he directed some customers to make checks payable to him personally, rather than to Patagonia, then ensured that those checks were not deposited into Patagonia's main bank account. When having tax returns prepared, Schoenauer falsely told his return preparer that all of his business receipts were deposited into the main Patagonia bank account, thereby concealing Patagonia's gross receipts and causing the preparation and filing of false tax returns. Schoenauer paid the Internal Revenue Service (IRS) $35,000 at sentencing, which will be applied to his outstanding tax liability.

"When a business owner cheats on his taxes, he gains an unfair advantage over honest businesses and cheats all honest taxpayers," said Assistant Attorney General for the Justice Department's Tax Division Kathryn Keneally. "This sentence shows that we will hold such criminals accountable."

"Paying income tax is a solemn obligation of citizenship," said U.S. Attorney for the District of Idaho Wendy J. Olson. "Integrity in business transactions required to be reported to the federal government is essential to the proper functioning of our economy. Those who hide income, evade taxes and launder profits undermine our democracy. This sentence sends a strong message that those who seek to avoid their tax responsibilities will be properly punished."

"The license to run a business is not a license to evade paying taxes," said Richard Weber, Chief, IRS Criminal Investigation. "Mr. Schoenauer's misconduct, concealing business receipts and having checks made payable to himself, is offensive to all honest business owners. IRS Criminal Investigation continues to protect the U.S. tax system by investigating and bringing to justice individuals who violate tax laws."

Assistant Attorney General Keneally and U.S. Attorney Olson commended the efforts of special agents from IRS-Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Michael J. Romano and Mark L. Williams, who prosecuted the case.

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Inmate Sentenced for Filing False Tax Returns While in Alabama Federal Prision

Source- http://www.justice.gov/tax/2013/txdv13352.htm

WASHINGTON – David Marrero, a federal inmate in the custody of the Bureau of Prisons, was sentenced today to 46 months in prison for tax fraud committed while in prison, the Justice Department and the Internal Revenue Service (IRS) announced. Twenty-four months of the sentence imposed will run concurrent with Marrero's current 10 year federal sentence, and 22 months will run consecutive to his 10 year sentence. Marrero had pleaded guilty in December 2012 to filing false claims.

According to court documents, while serving his federal sentence in Montgomery County, Ala., Marrero began sending various false documents to the IRS and to the federal judge who had presided over his case in Florida. Among the documents Marrero sent were fictitious money orders and false tax returns making claims for refunds, including one tax return claiming a $2,719,438 refund-the amount of restitution Marrero had been ordered to pay following his conviction in Florida. The fraudulent tax returns were based upon false IRS Forms 1099-OID on which Marrero had fraudulently claimed that various companies withheld a substantial amount of federal taxes from him when, in fact, the companies had withheld nothing. Marrero also used financial documents he had obtained from other people, without their knowledge or consent, as supporting documentation for his fraudulent claims.

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Justice Department's Civil Injunction Program Shuts Down Fraudulent Tax Return Preparers and Tax Fraud Promoters

Source- http://www.justice.gov/tax/2013/txdv13350.htm

Federal Courts Enjoined More than 30 Tax Return Preparers and Tax Scheme Promoters in Past Six Months

WASHINGTON – The Justice Department today announced recent results of its civil injunction efforts to combat unscrupulous tax return preparers and tax fraud promoters. According to Internal Revenue Service (IRS) estimates, 60 percent of taxpayers use tax professionals to prepare and file their tax returns. Paid tax return preparers now prepare more than 80 million individual tax returns annually. For more than a decade, the department's Tax Division, working with the Internal Revenue Service, has pursued a civil injunction program to stop fraudulent return preparers and promoters from violating federal tax laws and consumer protection laws. With the current tax-filing season underway, the Tax Division in the last six months has obtained permanent injunctions against more than 30 preparers and promoters doing business all over the United States.

Since Oct. 1, 2012, the Tax Division has obtained civil injunctions against both large-scale return preparation franchises and smaller, independent return preparers and promoters across the country. For example, on Oct. 22, 2012, a U.S. District Court in Dayton, Ohio, entered preliminary injunctions against ITS Financial LLC and its CEO, Fesum Ogbazion. ITS Financial is the parent company that owns the Dayton-based Intstant Tax Service tax-preparation franchise operation. Instant Tax Service claims to be the fourth-largest tax-preparation firm in the nation. The preliminary injunction remains in force pending trial on the government's request for a permanent injunction, currently scheduled for May 2013. During December, January and February, federal district courts also permanently enjoined current and former Instant Tax Service franchisees in Las Vegas, Kansas City and Los Angeles, and entered a preliminary injunction against an Instant Tax Service franchisee in Indianapolis. Similarly, on March 1, 2013, a U.S. District Court in Tennessee permanently shut down a licensee of Memphis-based Mo' Money Taxes LLC and MoneyCo USA LLC. Federal courts have also shut down return preparers in Mississippi, Florida, Louisianaand South Carolina, and promoters of alleged tax-fraud schemes in Michigan, New York and Kansas.

As alleged in the Tax Division's civil injunction complaints, fraudulent return preparers commonly falsify information to take advantage of refundable credits available under federal tax law, often improperly manipulating customers' income, expenses and dependents to hit the so-called "sweet spot" to maximize the refundable credit claimed. They also take advantage of customers by selling deceptive loan products with exhorbitant fees. As identified in the government's complaints, some of the fraudulent schemes and practices that have been stopped through injunction orders recently include:
Preparing phony tax-return forms with fabricated businesses and income;
Claiming false education and homebuyer credits;
Claiming false and inflated deductions;
Claiming false filing status;
Claiming false dependents;
Selling deceptive loan products;
Filing tax returns without customer consent or authorization;
Preparing bogus W-2 forms, based on information from employee paystubs;
Falsifying information on returns to claim inflated earned income tax credits; and
Filing fraudulent tax returns using stolen taxpayer identities to obtain improper tax refunds.

Some preparers try to conceal their fraud by not signing the returns they prepare and by using stolen or fake social security numbers to misidentify the paid preparer.

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James Timothy Turner Self-Proclaimed "President" of Sovereign Citizen Nation Convicted in Alabama of Federal Tax Crimes

Source- http://www.justice.gov/tax/2013/txdv13344.htm

WASHINGTON – A federal jury in Montgomery, Ala., found James Timothy Turner, also known as Tim Turner, guilty late Friday of conspiracy to defraud the United States, attempting to pay taxes with fictitious financial instruments, attempting to obstruct and impede the Internal Revenue Service (IRS), failing to file a 2009 federal income tax return and falsely testifying under oath in a bankruptcy proceeding, the Justice Department, the IRS and the FBI announced today.

Based on the evidence introduced at trial and court filings, Turner, the self-proclaimed "president" of the so-called sovereign citizen group "Republic for the United States of America" (RuSA), traveled the country in 2008 and 2009 conducting seminars teaching attendees how to defraud the IRS by preparing and submitting fictitious "bonds" to the United States government in payment of federal taxes. Although the evidence at trial revealed the bonds are fictitious and worthless, witnesses testified that Turner used special paper, financial terminology and elaborate borders in an effort to make them look "real" and more likely to succeed in defrauding the recipient. Turner was convicted of sending a $300 million "bond" in his own name and of aiding and abetting others in sending fifteen other “bonds” to the Treasury Department to pay taxes and other debts.

The evidence at trial also established that Turner taught people how to file retaliatory liens against government officials who interfered with the processing of fictitious "bonds." Turner filed a purported $17.6 billion maritime lien in Montgomery County, Ala., Probate Court against another individual. Finally, evidence presented at trial demonstrated that the FBI began an investigation after Turner and three other individuals sent demands to all 50 governors in the United States in March 2010 ordering each governor to resign within three days or be "removed."

"The jury's verdict in this case sends a message that defrauding the government and others through the use of bogus financial documents will not be tolerated," said Assistant Attorney General for the Justice Department's Tax Division Kathryn Keneally. "Disagreement with the law is no excuse for the real harm caused by these self-interested tax defiers."

"These sovereign citizen groups use these retaliatory tax liens and fraudulent tax schemes as weapons against the United States and its citizens," stated Acting U.S. Attorney Sandra J. Stewart. "It is only the hard work of law enforcement that can stop these criminals from using these financial weapons. I would like to thank the law enforcement officers who worked vigilantly on this case to bring this criminal to justice."

"Those who create elaborate schemes and fraudulent tax elimination tactics run a high risk of prosecution," stated Richard Weber, Chief, IRS Criminal Investigation. "Mr. Turner's attempts to thwart the IRS, as well as the assistance and training he provided to others, was not tax planning, it was criminal activity. IRS-Criminal Investigation is committed to vigorously pursuing those who promote illegal financial transactions designed to evade the payment of taxes. For those who would consider similar behavior, let this case be a strong warning that there is no secret formula for evading the payment of taxes and no one is above the law."

Turner remains in federal custody pending sentencing. Turner faces a potential maximum prison term of 164 years, a maximum potential fine of $2,350,000 and mandatory restitution.

"The prosecution of individuals who intentionally impede the IRS by submitting fictitious and frivolous documents, in an attempt to avoid paying federal taxes, is a vital element in maintaining public confidence in our tax system," stated Veronica Hyman-Pillot, Special Agent in Charge of IRS Criminal Investigation. "Hopefully the verdict will send a message to other individuals like Turner, that this conduct will not be tolerated."

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Preparer Allegedly Falsifies Tax Returns at Cost of Millions to U.S. Treasury

Source- http://www.justice.gov/tax/2013/txdv13331.htm

WASHINGTON – The United States has asked a federal court in Montgomery, Ala., to bar Kenya Hendrix Adams from preparing tax returns for others, the Justice Department announced today. According to the government complaint, Adams has repeatedly prepared federal tax returns that understate her clients' federal tax liabilities. The suit alleges that Adams did so by falsely claiming or inflating tax credits or fabricating deductions.

The suit alleges that the IRS has completed examinations of 315 returns prepared by Adams and that 88 percent of those returns understated the filing taxpayer's liability. Because Adams prepared almost 2,000 returns over a five year period between 2007 and 2012, the suit alleges that the harm to the U.S. Treasury as a result of her conduct could be in the millions of dollars.

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Sentenced to More Than 11 Years in Prison for Preparing False Tax Returns Claiming Hundreds of Thousands of Dollars in Refunds

Source- http://www.justice.gov/tax/2013/txdv13322.htm

WASHINGTON – Tyrone Thompson was sentenced today to 137 months in prison by U.S. District Judge Hugh Lawson in the Middle District of Georgia for conspiracy and filing fraudulent tax returns in order to receive tax refunds, to which the defendant was not entitled, the Justice Department and Internal Revenue Service (IRS) announced. In addition to Thompson, the scheme involved four others who had already been sentenced. Judge Lawson also ordered Thompson to pay $516,363 in restitution to the IRS. In October 2012, all five defendants pleaded guilty to filing a false claim for tax refunds. In addition, Thompson pleaded guilty to conspiracy to file false claims for tax refunds.

According to court documents, Thompson organized a scheme in which he prepared and filed fraudulent federal income tax returns using the names of other individuals. He included with the returns fictitious Schedules C reporting business income and losses and also claimed false First-Time Homebuyer Credits, in order to obtain tax refunds to which he and his co-defendants were not entitled. He directed fraudulently-obtained refunds to be deposited to his co-defendants' bank accounts. The attempted tax refund fraud exceeded $400,000.

"Today's lengthy jail sentence sends a strong message that those who would consider committing tax fraud should think carefully about the serious risks involved," said Assistant Attorney General for the Justice Department's Tax Division Kathryn Keneally. "As millions of honest, hard-working taxpayers prepare and file their tax returns, they should be assured that those who would shirk their civic duty or try to 'game the system' will be investigated by the IRS and, where appropriate, criminally prosecuted by the Department of Justice."

"These folks are stealing from every good tax paying citizen, and we won't tolerate it," said U.S. Attorney for the Middle District of Georgia Michael J. Moore.

"Tyrone Thompson organized a scheme to file fraudulent tax returns using the identities of third parties in order to receive false refunds," said Richard Weber, Chief, IRS Criminal Investigations. "Mr. Thompson cheated the government by filing false Schedule C and false First-Time Homebuyer Credit forms to increase the fraudulent tax refunds. IRS Criminal Investigation has made investigating refund fraud a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system."

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Federal Court Permanently Bars Crystal Ireland From Preparing Tax Returns Claiming The Earned Income Tax Credit

Source- http://www.justice.gov/tax/2013/txdv13308.htm

Tax Preparer Allegedly Prepared Returns Claiming Bogus Dependents and with Fabricated Business Income to Falsely Maximize Earned Income Credits

WASHINGTON – A federal court has permanently barred Crystal Ireland, of Detroit, who does business as Master Mind Preparation, from preparing federal tax returns that claim the earned income tax credit, the Justice Department announced today. The civil injunction order, to which Ireland consented, was signed by Judge Bernard Friedman of the U.S. District Court for the Eastern District of Michigan.

The complaint in the case alleged that Ireland failed to comply with due diligence requirements imposed by federal law on tax preparers who claim the earned income credit on customers' returns. According to the complaint, Ireland fabricated businesses and reported fake business income on her customers' tax returns in order to claim the maximum credit for them.

The complaint alleged that the Internal Revenue Service penalized Ireland in 2010 for failing to comply with federal law due diligence requirements, yet a 2011 follow-up investigation revealed ongoing failures and fraudulent claims. According to the complaint, Ireland prepared at least 2,300 returns from 2008 through 2011, with unusually high refund rates ranging from 97 to 99 percent for those years.

The permanent injunction order also bars Ireland from preparing forms Schedule C on which she knowingly fabricates income or expenses, preparing tax returns on which she knowingly claims a dependent that does not actually qualify as a dependent of the taxpayer, and preparing tax returns on which she fails to identify herself as the paid preparer or falsely identifies someone else as the paid preparer.

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Owner of Tax Preparation Business Sentenced in Alabama to Federal Prison

Source- http://www.justice.gov/tax/2013/txdv13304.htm

“Premier Tax” Operated in Multiple Locations in Alabama and Georgia

WASHINGTON – Bruce King, the founder and operator of Premier Tax, was sentenced today in Montgomery, Ala., to 70 months in prison and ordered to pay $781,305 in restitution to the Internal Revenue Service (IRS) for orchestrating a tax fraud scheme at his business, the Justice Department and the IRS announced. King had previously pleaded guilty to charges of conspiring to defraud the United States and filing false tax returns.

According to court documents, Premier Tax was a tax preparation business operated by King that had several locations in Alabama and Georgia. King held training sessions in which he taught preparers how to falsify tax returns in order to fraudulently increase clients' tax refunds. Those he taught went on to work at Premier Tax and filed numerous false tax returns. According to court documents, the tax loss caused by these fraudulent returns exceeded $1 million. To date, seven return preparers trained by King have also pleaded guilty and been sentenced.

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Marlen Monzon and Yanko Rodriguez Court Bars South Florida Tax Return Preparers From Preparing Returns for Others

Source- http://www.justice.gov/tax/2013/txdv13299.htm

WASHINGTON – A federal district judge in Miami permanently barred Marlen Monzon, her son Yanko Rodriguez, and their Miami business, Tri Stars Multiservices Corporation, from preparing federal income tax returns for others, the Justice Department announced today.

According to the government's complaint, Monzon and Rodriguez prepared federal income tax returns in Miami through Tri Stars Multiservices, Corporation. As alleged, the returns prepared by Monzon and Rodriguez included fabricated claims for business expenses on customers' returns even when the customers did not own or operate a business. The complaint further alleged that these fabricated expenses offset the customer's wage income and improperly lowered the customer's reported taxable income. These fabricated expenses generated (or increased) customers' refunds, and often qualified customers for credits to which they were not entitled. The complaint alleged that nearly every one of the 498 returns that the Internal Revenue Service (IRS) examined for tax years 2008 through 2011 claimed that the customer operated a business and reported a business loss. According to the complaint, the IRS has determined that the U.S. Treasury lost more than $3.4 million in revenue as a result of Monzon and Rodriguez’s misconduct.

Monzon, Rodriguez and Tri Stars consented to the entry of the injunction.

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Justice Department Bars James M. Unterreiner II from Preparing Tax Returns

Source- http://www.justice.gov/tax/2013/txdv13296.htm

WASHINGTON – A federal court has granted the United States' request to permanently bar James M. Unterreiner II from preparing tax returns, the Justice Department announced today. According to the government complaint, from 2002 until 2003, Unterreiner worked for Tax Resolutions Inc., where he assisted owner Irvin H. Catlett Jr. and others in marketing a tax evasion scheme in which Tax Resolutions' clients made investments in various sham companies and reported bogus tax losses. Unterreiner consented to the injunction.

As the Justice Department previously announced, testimony heard at Catlett's nine-day criminal trial in 2010 showed that Tax Resolutions prepared fraudulent tax returns for its clients that included fictitious business losses which Tax Resolutions falsely claimed resulted from automobile leasing and sales. The fake losses reduced the amount of taxable income and total tax reported by Tax Resolutions' clients. As a result, the clients falsely claimed refunds from the Internal Revenue Service (IRS).

Testimony at that trial also showed that Unterreiner assisted Catlett and helped perpetuate the scheme by preparing client tax returns by first determining each client's tax and then adding to the return a fictitious loss from a tax shelter entity large enough to reduce the client's tax due to zero. Unterreiner continued the scheme even after Catlett was imprisoned on other charges. As a result of the scheme, approximately 275 tax returns were filed with the IRS which reported bogus losses, resulting in a tax loss to the United States in excess of $3 million.

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Bryant Thompson and Quincy Walton Indicted for Stolen Identity Tax Refund Fraud

Source- http://www.justice.gov/tax/2013/txdv13292.htm

WASHINGTON – A 29-count indictment was unsealed today in Montgomery, Ala., charging Bryant Thompson, an Alabama corrections officer, and Quincy Walton, a former Alabama corrections officer, with federal tax crimes, the Justice Department and the Internal Revenue Service (IRS) announced. Thompson and Walton are both charged with one count of conspiracy to defraud the United States; Thompson is additionally charged with 10 counts of wire fraud and 10 counts of aggravated identity theft, and Walton is additionally charged with four counts of theft of government money and four counts of aggravated identity theft.

According to the indictment, Thompson, a corrections officer at the Alabama Department of Corrections, unlawfully obtained the names and Social Security numbers of inmates in the custody of the state of Alabama and caused to be filed false tax returns in the names of those inmates. The IRS issued tax refund checks in the names of inmates whose identities Thompson unlawfully obtained and Walton cashed those checks.

An indictment is merely a formal charge by the grand jury. The defendants are presumed innocent unless and until proven guilty.

If convicted, Thompson and Walton face a maximum sentence of five years in federal prison for the conspiracy count, a maximum of 20 years for each wire fraud count, a maximum of 10 years for each theft of government money count and a minimum of two years for aggravated identity theft. In addition to prison time, Thompson and Walton also face the possibility of fines and restitution to the IRS and other victims.

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