Hillsborough County Man Sentenced to Federal Prison for Income Tax Fraud
Many Florida residents fall prey to financial scams that promise them a way to earn easy money. While many of these schemes only end up costing victims their own money, there are cases where the targets are convinced to participate in the scam themselves. Unfortunately, these people often get caught and find themselves prosecuted for committing serious federal crimes.
“Sovereign Citizen” Seminar Convinced Defendant It Was Okay to File for False 1040 Refunds
For example, a federal judge in Tampa recently sentenced a 72-year-old man to 15 months in federal prison for his role in perpetuating an income tax refund scam. In September 2021, the United States Attorney’s Office in Tampa filed a formal charging document alleging the defendant “did willfully aid and assist in, and procure, counsel, and advise in the preparation and presentation” of a “false and fraudulent” federal income tax return.
Essentially, the defendant helped friends and family members file Form 1040s that claimed refunds for federal income taxes purportedly withheld by a mortgage lender. This was completely made up; there was never any such withholding. Altogether, the government said the defendant used this fraudulent advice to help filers obtain about $1.5 million in unauthorized refunds.
Rather than go to trial, the defendant negotiated a plea agreement with the United States Attorney. In exchange for pleading guilty to a single count of “aiding and assisting fraud and false statements,” the government did not oppose the defense’s request for a downward adjustment in his sentence. Under federal sentencing guidelines, the defendant faced up to 36 months (3 years) in federal prison. With the downward departure, the court imposed a final sentence of 15 months, or just over 1 year.
In his own sentencing memorandum, the defendant tried to explain his actions. In 2015, a close friend of the defendant invited him to attend a seminar on the “Sovereign Citizen” movement. This refers to a loose group of anti-government activists and tax protesters who promote the idea they are not subject to the authority of any government without their consent. As relevant here, some Sovereign Citizen groups promote the idea that the government holds “secret accounts” in trust for its citizens. The seminar the defendant attended convinced him that he could legally file the fraudulent tax returns in order to help his family draw on these “accounts.” The defendant maintained that once he learned the truth, he stopped filing the false returns and apologized to the friends and family he misled.
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Federal prosecutors have been increasingly active in pursuing people who fall for Sovereign Citizen scams. In another recent case from the Tampa area, a judge sentenced a woman to 9 years in federal prison after she was convicted of filing false tax returns and skipping bail to avoid trial. It took the federal government nearly 7 years to arrest the defendant and bring her to court.
If you are accused of any kind of criminal fraud, your best chance for a positive outcome is not to flee the jurisdiction. Instead, you should work with an experienced Orlando white collar crime lawyer who can advise you on best possible defense. Call the Joshi Law Firm, PA, today at 844-GO-JOSHI or contact us online to schedule a free initial consultation.
Sources:
justice.gov/usao-mdfl/pr/valrico-man-sentenced-role-aiding-preparation-false-tax-return
justice.gov/usao-mdfl/pr/sovereign-citizen-sentenced-9-years-prison-34-million-tax-fraud-scheme-filing-false
