Some of our favorite recent tax fraud cases.
Enid, Okla.: Preparer Cesar E. Leon, owner and operator of Cesar’s Tax Service, has been sentenced to five years of probation, to include 21 days of weekend confinement followed by nine months of home detention, and been ordered to pay $168,481.45 in restitution to the IRS after filing a false return.
A year ago, Leon pleaded guilty to falsely reporting that he had no taxable income on his 2009 tax return. As part of his plea, he agreed to pay restitution to the IRS for all unpaid taxes he owed for 2008, 2009, 2010, 2011 and 2012.
El Dorado, Ark.: Preparer Gregory A. Taylor, 51, of Clanton, Ala. (formerly Crossett, Ark.) has pleaded guilty to one count of conspiracy to defraud the U.S., one of eight defendants indicted in June 2014 as part of an investigation into a tax fraud and ID-theft scheme in El Dorado and Crossett.
Taylor’s plea agreement revealed that from January 2009 through December 2011 he conspired with others to file false 2008, 2009 and 2010 returns using the personal ID information of others including names, Social Security numbers and dates of birth.
Taylor admitted that as a result of the conspiracy, he and his co-conspirators fraudulently claimed refunds totaling $1,101,478.
The sentence for each defendant will be determined by the court after review of factors unique to this case, including each defendant’s prior criminal record (if any), each defendant’s role in the offense, and the characteristics of the violations. In addition to prison time, each count carries a mandatory period of supervised release and maximum fine of $250,000.
Mount Laurel, N.J.: Preparer Marlise Y. Nesmith, 45, has been arrested and charged with theft by deception in connection with allegedly stealing a client’s state income tax refund.
Authorities said the victim reported in September that Nesmith had prepared and submitted her 2014 tax forms but that she never received the $813 state income tax refund she was expecting. The victim tried to contact Nesmith repeatedly for several months but was unsuccessful, authorities added.
Nesmith turned herself in to Mount Laurel police and was released pending a court hearing.