Examples of Questionable Refund Program (QRP) Fraud Investigations
The following examples of questionable refund program fraud investigations are excerpts from public record documents on file in the court records in the judicial district in which the cases were prosecuted.
Woman Sentenced for Filing False Tax Returns
On September 12, 2007, in Memphis, TN, Edith Thompson was sentenced to 12 months and one day in prison to be followed by two years of supervised release. Thompson pleaded guilty on May 2, 2007, to four counts of filing false claims against the United States. During her plea hearing she admitted to filing three fraudulent tax returns in her name for tax years 2001 through 2003, and one 2003 fraudulent tax return filed in the name of Valerie Little. During the plea hearing, evidence was presented indicating the fraudulent items claimed on the returns pertained to false dependants, earned income tax credit, and a fictitious Schedule C business. According to the indictment, Thompson’s scheme resulted in returns being filed with the Internal Revenue Service that claimed refunds totaling over $49,000.
Nigerian National Sentenced for Filing False Claims for Income Tax Refunds
On September 11, 2007, in Montgomery, AL, Robert O. Emojevwe, a Nigerian national, was sentenced to 15 months in prison to be followed by three years of supervised release, and ordered to pay a special assessment of $100 and $116,147 in restitution. On March 16, 2005, Emojevwe was charged with filing 46 false claims for income tax refunds for the 1998, 1999, and 2000 tax years. Emojevwe made false statements on the returns relating to the taxpayers’ income and deductions in order to make it appear that the taxpayers were eligible for the earned income tax credit, to which the taxpayers were not entitled. On May 9, 2007, Emojevwe pleaded guilty to one of the indictment’s 46 counts. However, under Emojevwe’s plea agreement with the government, all of the conduct charged in the indictment was taken into account in imposing sentence.
Mother, Daughter, and Son Used False Identities to Get Cars, Real Estate and Tax Refunds; Mother Sentenced to 8 Years in Prison
On September 1, 2007, in Tacoma, WA, Mildreada Ruiz Rapa and her daughter, Melanie Andrews, were sentenced for a wide range of identity theft related charges including fraudulent use of Social Security numbers, real estate fraud, false statements to HUD, and income tax fraud. Rapa was sentenced to eight years in prison to be followed by three years of supervised release. Andrews was sentenced to 15 months in prison to be followed by three years of supervised release. In addition, Rapa was ordered to make restitution of about $550,000 and Andrews was ordered to pay restitution of $60,000. In October 2005, Michael Andrews, Rapa's son, was sentenced to 18 months in prison and ordered to pay $243,224 in restitution after pleading guilty to related identity theft charges. According to court records, automobile purchases and car loans were made in a series of fictitious identities each defendant had crafted over time. The same false identities were then used by the defendants to purchase seven residential properties in the Vancouver and Portland areas. The homes and corresponding bank loans ranged from $180,000 to $450,000, and totaled about $2 million. In each instance, the defendants created entirely fictitious histories, accompanied by false asset and income information, including false IRS Form W-2s. Rapa also ran an income tax preparation service. She prepared and submitted IRS Forms 1040 in her own false identities and in the false identities of her children, for which she received fraudulent refunds. On tax returns for her clients, Rapa altered their IRS Form W-2s to increase their income, without their knowledge, arranged for the inflated refunds to be paid to her own accounts, and then either kept the entire refund or kept the inflated amount and paid the remainder to her client. Rapa received in excess of $60,000 in fraudulent IRS refunds.
Defendant Nets 36 Months in Prison for Preparing False Claims for Income Tax Refunds
On August 23, 2007, in Columbia, SC, Charles Edward Stubbs was sentenced to 36 months in prison for preparing false claims for income tax refunds. Stubbs was also ordered to pay more than $101,000.00 in restitution. Stubbs prepared 85 false tax refund claims between January 2002 and October 2003 totaling more than $271,000.00, using other individuals' identification information. As part of the scheme, he created W-2 forms to falsely represent that the individuals were employed in North and South Carolina and due income tax refunds.
Norwalk Man Sentenced to Prison for Tax Fraud
On August 10, 2007, in New Haven, CT, Stuart O. Dennison, was sentenced to 24 months of in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $96,839.76 to the Internal Revenue Service, for filing fraudulent income tax returns and fictitious W-2 wage and tax statements for the tax years 2002 and 2003. According to the court documents, Dennison filed five false tax returns and claimed tax refunds not due to him in 2002 and 2003. Four of the five false tax returns were filed electronically. Dennison filed three of these false returns in his own name, and the remaining two were filed in the name of his mother and his girlfriend. Dennison fabricated and submitted false W-2 wage and tax statements for all five tax returns. The total amount falsely claimed by Dennison was $207,506.76. As a result of this fraudulent scheme, Dennison received $96,839.76 in illegitimate tax refunds that he spent on, among other things, two automobiles, limousine rides, and high-end home audio/video equipment.
Virginia Man Sentenced to 36 Months for Filing False Tax Returns and Bank Fraud
On July 17, 2007, in Norfolk, VA, Tony Wayne Adams was sentenced to 36 months in prison and ordered to pay more than $101,000 for filing false income tax claims and bank fraud. Adams pleaded guilty in April 2007, admitting that he filed false tax returns seeking refunds from 2001 to 2003. According to the Statement of Facts in the case, Adams created at least five sham businesses and lied about his income on a Form W-2 “Wage and Tax Statement” that he created. Adams was ordered to repay the government and to repay several automobile dealerships he defrauded for using false documents and lying about his income to buy several cars.
Colorado Woman’s False Refund Claims Uncovered by IRS Fraud Detection Center
On July 10, 2007, in Denver, CO, Sydessah Nyessah Lewis was sentenced to five months in prison, five months of home detention, and ordered to pay $16,714 in restitution to the Internal Revenue Service for filing a false tax refund claim. A federal grand jury earlier charged Lewis with seven counts of filing false tax refund claims using various aliases. She pleaded guilty to one count in April 2007 admitting that she requested a $3,430 tax refund using another person’s name. IRS personnel at the agency’s Fraud Detection Center in Utah discovered the scheme.
Former Prison Inmate Pleads in Tax Refund Scheme
On June 27, 2007, former prison inmate Daniel G. Johnson was sentenced to 33 months in prison for filing false claims to the IRS. Johnson admitted that while serving time in the Arizona Department of Corrections, he filed two false income tax returns seeking $209,815 in refunds. Johnson pleaded guilty on November 28, 2005. In the first instance Johnson admitted that in November 2000, he filed a false 1999 U.S. Individual Income Tax Return using false wages and withholdings to claim a $2,129 tax refund. He also claimed large gambling winnings on his April 2001 tax return and requested a $207,686 refund.
California Man Sentenced to 18 Months in Prison for Forging Tax Refund Checks
On June 5, 2007, in Los Angeles, CA, Uriel Flores Ramos was sentenced to 18 months in prison and ordered to pay restitution of $350,446 for passing at least 135 U.S. Treasury checks with forged endorsements as part of an income tax refund scheme. Ramos pleaded guilty to passing forged U.S. Treasury checks on March 20, 2007. Ramos’s wife, Lea Enriquez Flores, pleaded guilty on March 13, 2007 to conspiring with Ramos to defraud the IRS. Flores admitted that she and Ramos prepared false tax returns, including false forms W-2 and falsely claimed dependants for people and claimed tax refunds from the IRS. On the returns that they prepared, Ramos and Flores used addresses of businesses and residences that they controlled or to which they had access in the city of Orange, California, as the addresses of the taxpayers. Flores’ sentencing is pending.
Washington State Man Sentenced for Filing a False Claim with IRS
On May 25, 2007, in Spokane, WA, Gustavo A. Bauer was sentenced to 15 months in federal prison for filing a false claim with the IRS, followed by two years of supervised release and ordered to pay $17,500 in restitution. Bauer pleaded guilty in April 2007 to one count of filing a false claim with the IRS. According to the US Attorney, Bauer filed 16 false income tax refunds in 1999 using the names and social security numbers of other people. The returns used false W-2 forms and all of them claimed the Earned Income Credit (EIC). The returns claimed tax refunds of $98,165. Bauer was a fugitive until June 2005 when he was found and arrested on counterfeiting charges near Fresno, California.
Ohio Tax Preparer Sentenced for Preparing False Tax Returns
On May 15, 2007, in Cleveland, OH, Vanessa Carter was sentenced to 30 months in prison, followed by three years of supervised release for preparing and filing 20 false federal income tax refunds. She was also ordered to pay $19,504 restitution to the IRS. Carter prepared and electronically filed false tax returns in the names of 11 people. The tax returns contained false, fictitious, and fraudulent claims for $75,295 in tax refunds.
Leader of Tax Refund Scheme Sentenced to 46 Months
On March 24, 2007, in West Palm Beach, FL, Cynthia Reynolds was sentenced to 46 months in prison to be followed by 3 years supervised release and ordered to pay $343,900 in restitution. Reynolds is the last of five defendants to be sentenced in a tax refund and counterfeit check scheme. According to the evidence, Reynolds would obtain the Social Security numbers and other identifying information from recruited individuals and would then prepare fraudulent Forms W-2 to support the false income information on returns, which resulted in refunds ranging from $3,000 to $5,000. Reynolds and her co-defendants would encourage taxpayers to apply for refund, which would allow the taxpayer to receive a cash advance on the false refund claim. During the course of the conspiracy, the defendants cause approximately 50 fraudulent income tax returns to be submitted to the IRS with false tax refund claims of approximately $200,000.
Man Who Threatened to Blow up Federal Courthouse Sentenced
On March 22, 2007, in Detroit, MI, Vassalo K. Russell was sentenced to 87 months in prison for threatening to use a weapon of mass destruction against U.S. government property, a false income tax refund scheme and a probation violation from a prior federal bank fraud conviction. Russell’s income tax refund scheme involved forging W-2 forms in 2003.
Prison Inmate Sentenced for Filing False Tax Refund Claims
On March 17, 2007, in Miami, FL, Paul Turturro was sentenced to 48 months of imprisonment, followed by three years of supervised release. Turturro was also ordered to pay $68,215.75 in restitution to the IRS for claiming more than $138,242 in false federal income tax refunds. While in prison, Turturro recruited fellow prisoners to file false tax returns claiming refunds. Turturro’s wife, Grace, prepared false Forms W-2 and other documents and filed the returns at numerous IRS Service Centers around the country. When the refund checks were mailed to Grace Turturro, she kept $1,000 as a fee, and then sent the balance of the money to friends or relatives of the inmates.
Former Detention Officer Sentenced for Defrauding the IRS in Connection with Refund Claims
On March 2, 2007, in Miami, FL, Lawrence Vincent Bailey, a former detention officer with the Department of Juvenile Justice in Miami, Florida, was sentenced 12 months and one day of imprisonment, followed by three years of supervised release. Bailey was also ordered to pay restitution to the IRS in the amount of $852,458. On December 2, 2005, Bailey pleaded guilty to conspiring to defraud the government. On September 29, 2005, Bailey and Derrick Wayne Smith were charged in a twenty-one count indictment with conspiracy and substantive counts of defrauding the government. According to the indictment, Bailey and Smith, along with co-conspirators Ron J. Hill and Sheree R. Saunders, recruited taxpayers and prepared false income tax returns on the taxpayers' behalf. In her capacity as manager of H&R Block, co-defendant Vanessa G. Faulk and her husband James N. Faulk, prepared false income tax returns on the taxpayers' behalf knowing that the returns contained false information. Approximately 246 fraudulent income tax returns claiming approximately $1.2 in refund claims were submitted to the IRS, co-conspirators Vanessa Faulk, James Faulk, Ron Hill, and Sheree R. Saunders were prosecuted previously in a separate case. Derrick Wayne Smith is scheduled to be sentenced at a later date.
Tax Preparer Sentenced to Prison for Filing False Return
On February 15, 2007, in Houston, TX, Filiberto Valencia Hernandez, aka Gilbert Hernandez, a tax return preparer, was sentenced to two years in federal prison, without parole, followed by three years supervised release for knowingly making and presenting a false claim against the United States. Indicted along with John Anthony Mitchell, in January 2004, Hernandez was convicted following his plea of guilty to the federal felony offense on October 31, 2005. According to the terms of the plea agreement filed in the record of the case, Hernandez offered to prepare the 1999 U.S. Individual Income Tax return for a client and accepted a $50 fee for the service. Without the client's knowledge or consent, Hernandez prepared a return that falsely claimed an earned income tax credit for two falsely listed dependents resulting in a refund amount of $5,084. Moreover, the tax return reflected Hernandez's address rather than the client's address. Hernandez arranged for Mitchell, an Electronic Return Originator (ERO), to electronically file the false return with the IRS. Mitchell did so knowing the return claimed false dependents, a false earned income tax credit, and a false income tax refund for $5,084. As a consequence of the false filing, the IRS issued a check payable to Hernandez's client in the amount of $5,084 through its rapid tax refund program to Mitchell, the ERO. Mitchell delivered to Hernandez a check in the amount of $4,704, the amount of the refund less bank fees and return preparation fees. Hernandez cashed the check. Hernandez later gave his client $1,000 as his tax refund for 1999. John Anthony Mitchell was previously sentenced to serve 12 months and a day in federal prison, without parole for his role in the scheme.
Raleigh Woman Sentenced for Filing False Tax Returns
On February 9, 2007, in Raleigh, NC, Margaret Yvonne Crudup was sentenced to 15 month in prison for filing fraudulent tax returns. Crudup pled guilty on June 13, 2005, to twenty two counts of making fraudulent claims on tax returns she prepared in her own name and in the names of others between tax years 2001 and 2003. Crudup’s scheme was designed to obtain illegitimate tax refunds by making a variety of false claims on the returns she prepared, including false claims of dependents who either did not exist or were not actually dependents of the taxpayer on whose behalf the return was filed; fraudulent claims of inapplicable tax filing status; provision of false W 2 and employment information, and providing false information about Schedule C expenses for non existent businesses. The total amount of fraudulently sought tax refunds is estimated at over $120,000.
Nashville CPA Sentenced in False Claims Case
On January 26, 2007, in Nashville, TN, James E. Webb, a Certified Public Accountant, was sentenced to 51 months in prison followed by 3 years of supervised release and ordered to pay restitution of $80,295. Webb, who had an office in Nashville, paid individuals to find taxpayers who had not filed income tax returns for several years. These paid individuals would then obtain personal information from the taxpayers, including dependant information, and provide that information to Webb. Webb would then prepare a tax return styled in the name of the taxpayer reporting fabricated income amounts and adding false dependents on the returns generating an Earned Income Tax Credit. Webb then forged the taxpayers' name on the return, signed the return as the preparer, and mailed the return to the IRS. The refunds were to be mailed to a PO Box or a private mail box in Nashville, which Webb controlled. The scheme resulted in approximately $404,749 in false claims, with $80,295 in refunds issued by the IRS.
Lomita CPA and Tax Preparer Sentenced to Three Years Imprisonment for Submitting False Tax Returns to the IRS
On January 23, 2007, in Los Angeles, CA, James Michael Jerra (aka James Michael Porter), a Lomita CPA and tax preparer, was sentenced to three years in prison following his November 2005 conviction of three counts of subscribing to false federal income tax returns for 2002. Jerra falsely claimed a refund of over $3 million from the IRS. Evidence showed that Jerra filed two false 2002 employment tax returns for Jandel Corporation with the IRS, which falsely claimed that Jandel Corporation paid wages and compensation of $9,986,724, and that from those payments, income taxes of $3,854,875 had been withheld for 2002. Evidence also showed that Jandel Corporation had not paid any wages or compensation in 2002, nor had it withheld any income taxes from payments made for wages or other compensation. Jerra also filed a false 2002 personal federal income tax return with the IRS which falsely reported wages of $9,986,724 and withholding of $3,854,875. The scheme involved offsetting the reported wages with a false gambling loss of over $7 million. Jerra then falsely claimed a refund for 2002 of $3,089,460. Jerra had not received any wages, nor had any taxes been withheld from him in 2002. Evidence presented at trial showed that Jerra did not receive the refund.
Memphis Man Sentenced in Tax Fraud Scheme
On January 18, 2007, in Memphis, TN, Tommie Brown, Jr., was sentenced to 41 months in prison followed by two years supervised release for his part in a conspiracy to file false claims for federal tax refunds. Lee and his brother Stephen Brown agreed to create and helped to create false W-2’s for individuals. The W-2’s contained false wages and federal tax withholdings. On some occasions, Tommie Brown prepared tax returns for the recruited individuals resulting in false claims of approximately $80,946.17 being submitted to the government. Stephen Brown, was previously sentenced on April 1, 2005, to serve 37 months in prison for his role in the conspiracy.
Detroit Man Gets Prison for Helping Others Get Fraudulent Tax Refunds
On January 10, 2007, in Detroit, MI, Jabbolli Davist was sentenced to 40 months in prison, followed by two years of supervised release, fined $2,100 and ordered to pay restitution of over $187,000. This sentence was imposed as the results of Davist's September 6, 2005 guilty plea to a March 17, 2003 indictment charging him with one count of conspiracy to defraud the IRS through false claims, 18 counts of aiding and abetting the filing of false claims with the IRS, and two counts of making false statements to IRS criminal investigators. According to court records, during 1999 through 2002, Davist operated a "refund scheme" where he helped taxpayers obtain fraudulent tax refunds. He found these taxpayers by word of mouth though family or friends and sometimes offered a $200 to $500 referral fee to anyone who brought him a taxpayer. Davist would meet with the taxpayer, get their identification information, instruct them on how to file, provide them with a fraudulent and fictitious W- 2 and drove the taxpayers to a local tax preparation service where they filed for their fraudulent refunds and requested a Refund. Davist required the taxpayers to hand all the tax preparation papers over to him and told them the he would let them know when their refund was ready for pickup. Once the RAL check was ready, Davist would notify the taxpayer, take them to get the RAL check and go with them to cash it keeping a significant portion of the tax refund for himself. The amount of the fraudulent tax refunds totaled over $187,000.
Five Sentenced in False Refund Scheme
On January 5, 2007, in Tulsa, Oklahoma, John Leonard Swimmer was sentenced to 57 months in prison followed by five years supervised release for his role in a conspiracy to defraud the IRS by obtaining the payment of false claims. In addition, Swimmer was ordered to pay $59,562.75 in restitution to the financial institutions that issued Refund based on the false returns. Swimmer, one of six people charged in April 2005, pled guilty in August 2005. Four of the other defendants in the case have been sentenced after pleading guilty to making false claims against the U. S. Government. John Randall Shepardson was sentenced to 18 months in prison followed by three years supervised release and ordered to pay restitution of $6,312.10. Jack Ray Hines was sentenced to 12 months and one day followed by three years supervised release. Shawna Lynn Mendenhall received 5 years probation. Holly Jones was sentenced to 24 months in prison followed by three years supervised release and ordered to pay $5,984.05 in restitution. The other defendant, Tommy Alan Toothman is scheduled to be sentenced on March 21, 2007.
The defendants recruited individuals to file fraudulent federal income tax returns under their own names and social security numbers using W-2 forms that contained names of employers who either did not employ the employees listed on the forms and contained fabricated amounts of tax withhholdings or were legitimate employers of the recruited individuals but contained inflated amounts of tax withholdings. The defendants then caused the false Forms W-2 to be submitted to commercial tax return preparers to be used to prepare false federal income tax returns which were electronically filed with the IRS. The recruited individuals were then instructed to apply for a RAL through the tax return preparer. This allowed the recruited individuals to receive cash advances from financial institutions within one to five days. The recruited individuals paid the defendants a portion of the refunds which ranged from $3,073 to $5,951. Testimony in court during Swimmer's sentencing revealed that 34 false 2001 returns that sought a total of $124,057 in refunds were filed.
Indianapolis Accountant Sentenced to Prison in Tax Refund Scheme
On January 5, 2005, in Indianapolis, IN, Robert Stout was sentenced to 37 months in prison, followed by three years supervised release, ordered to pay $61,177 in restitution and was barred from preparing income tax returns during his period of supervised release. Stout, who was an accountant, prepared false W-2 earnings statements and prepared false tax returns for persons claiming they were entitled to earned income credits based on the false W-2’s. The refunds ranged from $1,500 to $6,000 per return. During the course of the scheme Stout prepared approximately 60 false returns claiming refunds totaling $256,000. Clifton Jett was also sentenced for his role in the scheme. Jett was sentenced to 18 months in prison to be followed by three years supervised release. Jett was one of the persons who submitted a false tax return as well as recruiting 16 other people to file false tax returns that were prepared by Stout. The proceeds of the tax refunds were shared among various members of the conspiracy.
Defendant Used Internet Auction Web Sites to Carry Out Scam
On December 19, 2005, in Seattle, WA, Evangelos Dimitrios Soukas was sentenced to 92 months in prison to be followed by three years supervised release. Soukas was sentenced for submitting fraudulent claims to the IRS, identity fraud and conspiracy to commit wire and mail fraud. According to court documents, Soukas admitted to using a variety of schemes from 1999 to 2004, in his attempts to defraud his victims of more than $1.1 million dollars. Soukas posted false and fraudulent advertisements for merchandise on various internet auction web sites, knowing he did not have the merchandise and having no intention of delivering it. Soukas advertised expensive electronic equipment such as laptop computers, camcorders and cell phones. But, after purchasers mailed Soukas checks or paid into a Paypal account, they never received the merchandise. Soukas also used at least 15 victims' names, Social Security Numbers and dates of birth to open bank accounts, to apply for lines of credit and loans on the internet, and to purchase merchandise. Using the false identities, Soukas also filed false income tax returns in his victims' names in an attempt to obtain tax refunds to which he was not entitled.
Two Defendants Sentenced for Stealing Elderly Patients’ Identities to Commit Tax Fraud
On December 19, 2005, in Atlanta, GA, Joseph Milligan and Rae Beavers were sentenced on charges of conspiring to file false claims against the United States and fraudulently using other persons’ social security numbers. Milligan was sentenced to two years in prison to be followed by three years supervised release. Beavers was sentenced to one year and one day in prison to be followed by three years supervised release. Both defendants were ordered to pay restitution in the amount of $47,344. According to the evidence, Milligan and Beavers both worked at Eye Consultants of Atlanta, P.C. and beginning around January 2002, they stole the names, social security numbers and dates of birth of elderly patients. The information was provided to a convicted co-conspirator, Terrence Edwards, who used the data to file fraudulent federal income tax returns over the Internet. Each fraudulent return claimed a refund was due and Edwards filed for a refund from Santa Barbara Bank and Trust.
In July 2002, Milligan began working for Greenville Radiology, P.A. and continued to compile additional lists of elderly patients’ names, social security numbers, and dates of birth. Edwards paid Milligan between $200 and $500 for each list of patient identity information. When filing the fraudulent tax returns, Edwards used Beavers’ internet accounts and directed the bank to deposit some refund into Beavers’ bank account. Beavers worked with Edwards to forge a signature on and negotiate an income tax refund check in the amount of $26,355.65. Through Milligan’s and Beavers’ participation in the conspiracy, Edwards filed approximately 70 returns that falsely claimed refunds in excess of $200,000.
District of Columbia Man Sentenced to Two Years in Prison for Filing False Claims on Tax Returns
On December 12, 2005, in Greenbelt, MD, Eugene Love was sentenced to two years in prison, followed by three years supervised release, for filing false claims on federal income tax returns. Love was also ordered to pay $190,416 in restitution; $60,035 to IRS and $130,381 to HSBC Taxpayer Services, the entity that provided Refund based on the false application for refunds. According to the guilty plea, from about December 2001 through March 2002, Love was an office manager at Instant Tax Service. As the office manager Love was responsible for preparing and submitting tax returns on behalf on Instant Tax customers. The returns were filed electronically using the Electronic Filer Identification Number, which was assigned to Love. During this period, Love prepared 56 personal income tax returns using false W-2 information. A Refund was requested for each of these claims and issued in the client’s name. Each of the 56 RALs issued as a result of this fraudulent scheme were cashed and funds paid to Love.
Defendant Sentenced for Operating a False W-2 Tax Form Scheme
On November 21, 2005, in Fort Worth, TX, Anthony R. Houston was sentenced to 12 months in prison and ordered to pay restitution of $92,879. Houston pleaded guilty in August 2005 to one count of aiding or assisting in the preparation of a false tax return. Houston admitted that he assisted in preparing a false tax return for an individual (T.H.) using a false W-2 form which listed K-Mart of Texas as her employer. The defendant falsely listed $17,680 in wages, and $2,254.50 in federal income tax withholding on the W-2 Form. K-Mart of Texas stated they did not employ T.H. When T.H. was interviewed by an agent of the Internal Revenue Service, Criminal Investigation, she stated that Houston prepared a false W-2 form for her in February 2003. According to T.H., Houston approached her at an apartment complex and told her of the W-2 scheme. T.H. agreed and gave Houston her full name and social security number which Houston used in preparing the false W-2. Houston told her to have the return prepared at Jackson Hewitt. T.H. agreed to give Houston $1500 -$2,000 when she received the money from the return.
Co-Defendant Wife Pleads Guilty to Tax Scam Conspiracy from Prison Facility
On November 18, 2005, in Miami, FL, Grace Turturro pleaded guilty to conspiring to make or present fraudulent claims for federal income tax refunds against the United States. As stated in court, Paul Turturro is a prisoner at Moorehaven Correctional Facility in the Middle District of Florida. While in prison, Paul Turturro recruited fellow prisoners to file false tax returns claiming refunds. The necessary information such as names, dates of birth, and social security numbers was sent by Paul Turturro to Grace Turturro, who lived in New Jersey. As further stated in court, Grace Turturro would prepare false W-2 forms and other documents and would then file the returns at numerous IRS Service Centers around the country. The returns purported to be for tax years 1999-2002. All of the returns listed the Turturro address in New Jersey. When the refund checks came back to Grace Turturro, she kept $1,000 as a fee, and then sent the balance of the money to designated friends or relatives of the inmates. Grace Turturro sent payments to various locations including Boca Raton, Ft. Pierce and Miami, Florida. During the course of the conspiracy, the defendants caused approximately 43 fraudulent income tax returns to be submitted to the IRS, for a total fraud loss of $138,242.42.
Pair Sentenced for Filing False Claims in Oklahoma
On October 25, 2005, in Oklahoma City, OK, Stacey Leon McNeill was sentenced to 60 months in prison, followed by three years supervised release, ordered to pay restitution of $241,822 to the IRS and to perform 104 hours of community service. On October 7, 2005, another defendant, Shari S. Strawther was sentenced to 46 months in prison, followed by three years supervised release, ordered to pay restitution of $91,008 to the IRS and to perform 208 hours of community service. On July 8, 2005, McNeill and Strawther pleaded guilty to one count each of making a false claim to the Internal Revenue Service that they knew was materially false.
Man Sentenced to 15 Years in Fraud Case
On October 17, 2005, in Norfolk, VA, Craig Lamont Brown was sentenced to serve 180 months in prison, followed by five years supervised release and ordered to pay $221,691 in restitution after his convictions on conspiracy, bank fraud, and making false against the United States. Between 2000 and 2004, Brown and his nine co-defendants were involved in a scheme in which the co-defendants would open accounts at local banks and credit unions, deposit worthless or stolen checks into those accounts, after which they would withdraw funds credited on those checks as quickly as possible before the banks or credit unions could detect the scheme. Brown also prepared tax returns for the co-defendants and others that falsely inflated their income, which allowed them to obtain fraudulent refunds which were also split with Brown. Seven of the nine co-defendants have been sentenced receiving prison terms ranging from 14 months to one day in prison.
Georgia Man Sentenced for Preparing False Tax Returns for Clients
On October 13, 2005, in Macon, GA, Joseph Jerome Perkins was sentenced to 96 months in prison, followed by three years supervised release and ordered to pay restitution of $5,009.86 and a fine of $10,000. Perkins prepared taxes from his residence in Montezuma, Georgia, for numerous clients in a three county area. He charged his clients an up front tax preparation fee, usually $50, and a portion of the refund. The majority of fraudulent tax return prepared by Perkins included the use of false filing status, fraudulent dependents, false wages, and fabricated Schedule C businesses, in order to qualify the taxpayer for an Earned Income Tax Credit. The tax loss for the 32-count indictment was approximately $95,431.