The last of the defendants in the Anderson's Ark & Associates case have been sentenced, according to the Department of Justice and the Internal Revenue Service.
One of them, Gary Kuzel, a CPA from Downers Grove, Ill., was sentenced by Chief U.S. District Court Judge John C. Coughenour to 24 months in prison, to be followed by one year of supervised release.
In Kuzel's plea agreement, he admitted that he assisted AAA clients by preparing and filing the partnership agreements, promissory notes and income tax returns required to implement the "Look Back" program -- one of two fraudulent schemes promoted by the AAA organization.
From 1996 through 2001, AAA had approximately 1,500 clients, nearly 300 of whom reported over $120 million in fraudulent income tax deductions.
"People who help peddle tax scams, especially those who hold professional licenses, undermine the integrity of our tax system and put themselves and their clients at serious risk of financial loss, civil penalties and criminal prosecution," said Eileen J. O'Connor, Assistant Attorney General for the Department of Justice's Tax Division.
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