Tax Refund Fraudster Sent to Prison and Ordered to Pay $3.4 Million in Restitution

10

Lots of taxpayers would love to drive a luxury car and own a fancy house in a nice neighborhood. Apart from winning the lottery, most people expect to work hard to acquire the ”good life.’? According to an article posted on ABC24.com, a Memphis, Tennessee businessman didn’t see it that way. He preferred to scam it out of his clients by committing tax refund fraud.

The man ran a business called ”Money in Your Hand Tax Service,” which prepared tax refunds for clients. According to the lawsuit, he prepared the returns, but took it a step further by committing fraud. In fact, in 2008, he submitted almost 500 fraudulent tax returns. His approach was simple? he used his business to add phony deductions to tax returns – including first-time home buyer credits – and then ensured that some of the funds were directly deposited into bank accounts he controlled. His grand total for tax refund fraud? More than $3.4 million in fake deductions. The article does not indicate, however, that any of his clients whose tax refunds he’d submitted were party to the fraud he was perpetrating.

A federal judge sentenced him to five years and four months in prison and ordered him to pay the $3.4 million back to the IRS. Oh yeah…they also seized his luxury car and his home.

Source: Today’s ”Fraud of the Day” is based on an article entitled, ”Scamming Tax Man Ordered to Pay Back $3.4M, Serve 5 Years,” by May-Lin Biggs, published by ABC24.com, December 2, 2011.

MEMPHIS, TN (abc24.com) – A Memphis businessman running a tax refund scam was sentenced to 5 years and 4 months in prison, and ordered to pay back the IRS over $3.4 million.

According to the U.S. Attorney’s Office of West Tennessee, 37-year old James Conrad Burks defrauded the IRS over $3,455,249.00 through falsified deductions on tax refunds filed through his business, “Money In Your Hand Tax Service.” An investigation revealed that Burks included first time home buyer credits and other false credits on his clients’ tax returns, and had a portion of the refunds deposited directly into bank accounts he controlled. Burks also offered $500 for client referrals to file their taxes through his business.

Read More