Don't bet on it; COVID come-uppance; mine the gap; and other highlights of recent tax cases.
Lakeland, Florida: Tax preparer Jeffrey Dixon of Lakeland pleaded guilty to conspiracy to commit wire fraud and aiding and assisting in the filing of false and fraudulent tax returns.
Dixon falsified his tax returns in addition to clients' returns he prepared between January 2019 through July 2023. During that time he completed 458 false and fraudulent tax returns for 319 taxpayers, including himself. The tax returns reportedly contained fraudulent W-2G forms, among other falsified documents.
The returns had fabricated figures for gambling winnings and losses, and federal tax withholding amounts based on the fake gambling winnings.
The total intended tax loss from the tax returns Dixon prepared was over $42.3 million, with an actual total loss of over $12.9 million, which the IRS paid out to taxpayers, including Dixon, either as tax refunds or credits applied to prior debts.
Dixon personally profited $1.09 million with payments from his taxpayer-clients or refunds he received directly from the IRS.
He has been sentenced to nearly five years in federal prison and was ordered to pay nearly $13 million in restitution to the IRS.
Columbus, Georgia: Christopher Upshaw, a.k.a. "Troub," 26, of Columbus, the last remaining defendant in a pandemic-related tax fraud investigation costing U.S. taxpayers millions, pleaded guilty to one count of mail fraud on February 4.
Co-defendants Johnathon Swift, a.k.a. "JB," a.k.a. "John Boy," 34; Dontavis Williams, a.k.a. "Turk," 41; and Donterious Sparks, 37, all of Columbus, pleaded guilty to one count of mail fraud on January 21. All three face a maximum of 30 years in prison to be followed by three years of supervised release and a $1 million fine.
Upshaw and the other defendants devised a scheme to illegally obtain millions of dollars in COVID tax credits then used it for expensive cars and other luxuries. As a result of falsified returns the IRS issued five refunds to Upshaw's business. Upshaw did not file any W-2s from 2019 through 2023; there was also no record of his filing any tax returns for years 2019, 2020, 2022, or 2023, despite claiming COVID related tax credits for 2022.
Swift, Williams and Sparks similarly filed falsified returns, fraudulently claiming they were entitled to COVID tax credits. The four co-defendants received a combined 16 checks totaling $1,295,812.06. The checks were deposited into bank accounts or cashed. The total attempted loss was $2,250,423.67.
Upshaw faces a maximum of 30 years in prison to be followed by three years of supervised release and a $1 million fine.
London, Kentucky: John Quintrell, 52, of Meggett, South Carolina, pleaded guilty to failure to pay over more than $22 million in taxes owed to the IRS.
From September 2018 through April 2025, Quintrell was the sole owner of Civil LLC, a mining business, located in Harlan County. For the period of October 1, 2019, through March 31, 2025, Quintrell caused Civil to withhold federal income taxes and FICA taxes from employees' paychecks, however, Quintrell then failed to pay over to the IRS approximately $22,146,389.56 in federal income taxes, FICA taxes, as well as the employer's share of such payroll taxes.
Quintrell was ordered to pay $22,146,389.56 in restitution.
Quintrell was sentenced to 48 months in prison. Upon his release, he will be under the supervision of the U.S. Probation Office for three years.
Raleigh, North Carolina: Oliver Austin Thomas, III, 50, has been found guilty for failing to file an income tax return and tax evasion.
Evidence obtained revealed that in 2020 and continuing into 2021 and 2022, Thomas gambled at several casinos in Las Vegas resulting in substantial winnings. Thomas then attempted to evade paying income taxes on his winnings by providing false social security numbers to casinos to hide the gambling income. Thomas denied using another individual's social security number when interviewed by IRS agents.
Thomas failed to file a tax return for tax years 2020, 2021, and 2022, despite having enough income to trigger a filing requirement, resulting in a tax loss of $446,072.
Thomas was sentenced to a total term of 15 months imprisonment, to be followed by a three-year term of court-ordered supervision. He was also ordered to pay $446,072 in restitution.
Evansville, Wyoming: Esequiel "Tony" Terrazas Pacheco, 32, of Evansville, Wyoming, failed to file both personal and business tax returns from 2017 through 2022. Pacheco was the owner of Drywall Perfections, Inc. (DPI), which he operated out of his home since 2015 and never filed required corporate or personal returns.
A tax preparer completed quarterly employer tax forms for parts of 2019 through 2022, however, Pacheco never filed those forms or paid the taxes owed.
Pacheco was ordered to serve 18 months in prison followed by three years of supervised release and was ordered to pay $766,744.28 in restitution to the IRS.
Memphis, Tennessee: Shelby County Commissioner, Edmund Ford Jr., pleaded guilty to federal tax evasion charges.
Ford awarded grant funding to organizations across Shelby County and then received kickbacks worth hundreds of dollars. Ford was accused of depositing more than $250,000 into an account for his computer business from three different nonprofits.
As a part of the plea deal, Ford agreed he would resign from his county commission seat.
Ford could face up to five years on each charge. He is set to be sentenced on June 12.
