Scheme over, good buddy; what a load of bullion; and other highlights of recent tax cases.
Union City, Georgia: Truck driver Dantavious Jackson, 39, who operated a ghost tax preparation business on the side, was sentenced to federal prison for making claims for refunds of false COVID-related employment tax credits.
He was sentenced to 84 months in prison for executing a scheme to defraud the United States by making claims for refunds of false COVID-19 related employment tax credits. Jackson was also ordered to pay over $1.5 million in restitution to the IRS.
Jackson owned and operated a trucking business, and had a side business preparing returns for a fee. Jackson prepared and filed returns omitting his identity by PTIN or by any other means on the returns he filed for clients.
In addition, Jackson applied for CARES Act benefits, preparing and filing 35 Forms 941 for himself and two clients that falsely claimed they were entitled to $4,112,297 in refunds based on fraudulently claimed Employee Retention Credits. Jackson fabricated wages and employees to claim ERCs; the U.S. Treasury mailed $1,567,855 in fraudulent refunds to Jackson and his clients.
Roanoke County, Virginia: Herman Estes has pleaded guilty to real estate and tax fraud related to his scheme to obtain title to a $1.3 million home; he pleaded guilty to conspiring to commit wire fraud, wire fraud, mail fraud, bank fraud and filing false claims against the United States.
Estes filed a false amended income tax return for 2021 claiming he was entitled to a tax refund of $18.3 million. In March 2023, Estes made a $1.3 million cash offer for a local property. To legitimize this offer, Estes provided the parties to the transaction with a proof-of-funds letter that he created using an online form. Estes also provided the real estate agent with a number for his co-conspirator who he claimed was his trust manager with authority to approve the offer. The co-conspirator purported to approve Estes' use of his trust funds for the real estate transaction.
As payment for the property, Estes tendered a fraudulent cashier's check that he had signed in the amount of $1,307,199.43 purportedly drawn on the Federal Reserve Bank of Richmond. Funds in that amount were debited to the settlement company's trust account before the check was identified as fraudulent.
In March 2023, Estes filed another false return claiming he was entitled to a $2.9 million refund.
Estes faces up to 20 years in prison for the wire fraud conspiracy, wire fraud and mail fraud counts, 30 years for bank fraud and up to five years for the false claims counts, plus additional potential penalties related to the commission of these offenses out on bond. Estes also faces a period of supervised release, restitution and monetary penalties.
Franklin, Tennessee: Tax preparer Jason Alexander Jerkins has been sentenced to nine years in prison for stealing from his clients' bank accounts, preparing returns that fraudulently increased their refunds and stealing some or all those refunds.
Jerkins, who pleaded guilty earlier this year, owned Jerkins Business Solutions, providing bookkeeping, payroll, tax prep and similar accounting and tax services. To pay his clients' expenses, Jerkins had online access to their bank accounts.
Between March 2020 and April 2025, Jerkins stole more than $4.6 million from 45 clients by wiring money from their bank accounts to accounts he controlled or could access. He hid these fraudulent wires by recording them with innocuous descriptions like "Jerkins Business Sol" or "Jerkins Business Sale" and timing them close to legitimate transfers. When clients became suspicious, Jerkins created false documents to deceive them into believing the stolen funds were used to pay valid expenses, or he repaid those clients by stealing from other clients.
Jerkins also prepared at least 80 false returns to fraudulently inflate clients' refunds, directing the IRS to deposit some or all of each refund into an account he controlled. Jerkins hid this fraud from his clients by printing them a different return than the one he filed.
Jerkins attempted to steal about $380,010, and successfully stole about $280,970, from his clients and the U.S. Treasury. He used the money to pay off personal credit cards, take vacations, lease vehicles, purchase real estate, and buy luxuries for himself and his family.
He was also ordered to pay some $4.5 million in restitution to his victims and the U.S.
Los Angeles: One of the companies of a couple who own precious metals businesses has pleaded guilty to federal criminal charges for concealing millions of dollars' worth of cash transactions from the United States, failing to maintain an anti-money-laundering program and using the unreported cash at other family businesses, at a casino, and for other personal expenses.
Pleading guilty to one count of conspiracy were Alex Nguyen, 50, of Irvine, California, who also pleaded guilty to one count of filing a false return; Sam Nguyen, 52, also of Irvine, Alex Nguyen's wife; and Newport Gold Post Inc., one of the companies they own.
According to their plea agreements, from May 2013 to March 2022, Alex and Sam Nguyen owned several family businesses that bought and sold precious metals, including Newport Gold Post. These family businesses received millions of dollars in cash from their customers, requiring the Nguyens to file paperwork with the IRS. Alex and Sam Nguyen knowingly and repeatedly failed to file a Form 8300 with the IRS.
While operating the family businesses, Alex Nguyen received $200,000 to $1 million in cash daily from customers. He used this cash to purchase other precious metals from other Jewelry District businesses, agreeing with other business operators to not file completed 8300s.
In total, Alex Nguyen and his co-conspirators intentionally failed to file inaccurate or incomplete Form 8300s on more than 350 occasions for at least $127,446,066 in cash that was delivered to the Nguyen family businesses.
In her plea agreement, Sam Nguyen admitted to intentionally failing to file a Form 8300 for multiple precious metals transactions. The total tax due and owing for all five years in question is some $1.8 million.
Sentencing is June 5. Alex Nguyen will face up to eight years in prison, Sam Nguyen up to five years and Newport Gold Post a maximum of five years of probation and a $500,000 fine.
