Some of our favorite recent tax fraud cases.
Jesup, Ga.: Preparers Gregory Allen, 31, and Leisha Allen, 33, brother and sister, have pleaded guilty for their roles in a stolen ID and tax fraud scheme.
Evidence showed that the Allens operated a fraudulent tax prep business, B & C Superior Tax Services, where they conspired to file hundreds of fraudulent returns to illegally obtain refunds. The returns were e-filed using the stolen names and Social Security numbers of others, including people who were incarcerated or dead. Members of the conspiracy filed returns seeking more than $2 million in fraudulent refunds.
Montgomery, Ala.: A federal court has permanently barred Jenika Williams from preparing federal returns for others.
The complaint alleged that Williams prepared returns that falsely claimed or inflated refunds by using SSNs and other ID information of third parties to falsely claim dependents and secure the EITC.
Williams, the suit alleges, previously pleaded guilty to conspiracy to defraud the U.S., wire fraud and aggravated ID theft. Losses to the Treasury from her activities may exceed $1 million.
Philadelphia: Preparer Dauda Koroma, 42, has pleaded guilty to charges stemming from a scheme in which he falsely listed foster and disabled kids as dependents on clients’ returns, according to published reports.
Koroma, who worked at Medmans Financial Services, was one of nine people charged in the case. He pleaded guilty to charges of conspiracy, filing false tax returns, fraud and aggravated ID theft, reports said.
Catholic Social Services reportedly managed the cases of many foster kids whose names were falsely listed as dependents. Authorities reportedly contend that the scheme lasted from about 2008 to April 2013 and that Koroma defrauded the government of between $2.5 million and $7 million in false refunds.
Reports added that Koroma faces a minimum of two years when he’s sentenced on January 15, and that three others charged in the case, including the owner of Medmans, previously pleaded guilty.
Dallas: Preparer Ousmane Sow, who pleaded guilty in April to one count of aiding and assisting in the preparation of a fraudulent return, has received 30 months in federal prison.
Sow was indicted in 2007 on federal felony charges and remained a fugitive until November. According to case documents, from 2003 to 2005 he and co-defendant Tichafara Mpariwa provided tax prep through a business they jointly owned and operated under the name of DSL Tax Services. In 2004, Sow opened a second location of DSL in Irving, Texas.
From 2003 to 2005, according to authorities, Sow prepared and filed federal individual returns, schedules and forms that contained phony credits and deductions to inflate clients’ refunds. This included using false business and education expenses to create a false education credit.
Sow voluntarily returned to the U.S. to face charges. Mpariwa remains at large.
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