Wifredo A. Ferrer, United States Attorney for the Southern District of Florida; José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and Daniel C. Alexander, Chief, Boca Raton Police Department, announce today that Brandon James, of Miami, was sentenced by U.S. District Judge Daniel T.K. Hurley to 81 months in prison, followed by two years of supervised release. James was also ordered to pay restitution in the amount of $382,444 and a special assessment of $300.
According to court documents and statements made in court, James was involved in cashing out fraudulent federal income tax refunds that had been placed electronically onto debit cards. James and his co-conspirators, Laron Larkin and Eric Fussell, attempted to defraud the IRS of more than $862,000 in fraudulent income tax refunds based on at least 121 stolen identities. The IRS paid approximately $382,484 on these refund requests.
James pled guilty earlier to conspiracy to steal government monies, in violation of Title 18, United States Code, Section 371 (count one), theft of government funds, in violation of Title 18, United States Code, Section 641 (count four), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A (count nine).
Co-defendant Larkin was sentenced on October 7, 2013, to 36 months and one day in prison, to be followed by three years of supervised release. Larkin pled guilty to one count of conspiracy to steal monies of the United States, in violation of Title 18, United States Code, Section 641, the conspiracy being a violation of Title 18, United States Code, Section 371; and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
Mr. Ferrer commended the investigative efforts of IRS-CI, FBI, and the Boca Raton Police Department. The case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.
Showing posts with label IRS. Show all posts
Showing posts with label IRS. Show all posts
Tuesday, April 22, 2014
Monday, March 3, 2014
Former Chairman of Woodland Park Democratic Committee Sentenced to Two Years in Prison for Bribing IRS Official
CAMDEN, NJ—The former chairman of the Woodland Park, New Jersey Democratic Committee was sentenced today to 24 months in prison for bribing two individuals he thought were IRS officials to eliminate his tax debt, U.S. Attorney Paul J. Fishman announced.
Michael Kazmark, 61, of Woodland Park, previously pleaded guilty before Chief U.S. District Judge Jerome B. Simandle to an information charging him with one count of bribing a federal public official in exchange for official action. Judge Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Kazmark failed to pay federal income taxes from 1997 through 2005. In 2010, Kazmark owed the IRS $98,046 in unpaid federal income taxes, interest, and penalties. On April 18, 2010, Kazmark made an application to the IRS for an offer in compromise, requesting that he pay $48,800 to the IRS in order to settle his entire federal tax debt.
On October 5, 2010, Kazmark paid a $1,000 bribe to an undercover FBI agent and IRS employee, posing as IRS officials, in exchange for their official assistance in transferring his offer in compromise file to one of the officials for acceptance. On November 23, 2010, Kazmark made a $17,500 bribe payment to the individuals, believing it was in exchange for their official assistance in placing his federal tax liability in noncollectible status for two years and agreeing to accept Kazmark’s offer in compromise for the amount of the check that he had already paid to the IRS—$9,760—if he did not incur any additional federal tax liability for two years.
In addition to the prison term, Judge Simandle sentenced Kazmark to two years of supervised release. As a condition of that release, Kazmark is required to pay his full tax liability to the IRS.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and special agents of the U.S. Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Robert Geary, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Michael Kazmark, 61, of Woodland Park, previously pleaded guilty before Chief U.S. District Judge Jerome B. Simandle to an information charging him with one count of bribing a federal public official in exchange for official action. Judge Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Kazmark failed to pay federal income taxes from 1997 through 2005. In 2010, Kazmark owed the IRS $98,046 in unpaid federal income taxes, interest, and penalties. On April 18, 2010, Kazmark made an application to the IRS for an offer in compromise, requesting that he pay $48,800 to the IRS in order to settle his entire federal tax debt.
On October 5, 2010, Kazmark paid a $1,000 bribe to an undercover FBI agent and IRS employee, posing as IRS officials, in exchange for their official assistance in transferring his offer in compromise file to one of the officials for acceptance. On November 23, 2010, Kazmark made a $17,500 bribe payment to the individuals, believing it was in exchange for their official assistance in placing his federal tax liability in noncollectible status for two years and agreeing to accept Kazmark’s offer in compromise for the amount of the check that he had already paid to the IRS—$9,760—if he did not incur any additional federal tax liability for two years.
In addition to the prison term, Judge Simandle sentenced Kazmark to two years of supervised release. As a condition of that release, Kazmark is required to pay his full tax liability to the IRS.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and special agents of the U.S. Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Robert Geary, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Tuesday, January 7, 2014
Tea Party Groups Awaken From Holiday Slumber to Fight IRS Rules
After getting off to a slow start, conservative tea party groups are pushing back on the Internal Revenue Service’s new proposal to regulate tax-exempt groups.
It’s the latest chapter of a saga over the targeting of conservative groups throughout the 2012 election that exploded over the summer of 2013. And it comes nearly a month and a half after the IRS first revealed its proposed rules in late November.
The IRS’s Thanksgiving-week announcement of new rules to rein in tax-exempt groups that participate in political activities caught many by surprise — especially conservative groups.
Most of Washington left town for the holiday season as the clock ticked on the roughly 90-day window for public comment on the proposed rules.
“They seem hell bent to do whatever they’re setting out to do because of the way they issued the rules and the fact that the comment period happens during the holiday season,” said Matt Kibbe, president of FreedomWorks.
“I think changing the rules in an election year is extraordinarily unfair and unprecedented,” he added.
Kibbe’s organization over the weekend urged its members and affiliates, which include tea party groups across the country, to submit comments opposing the proposed rules.
The comments would be considered by the IRS in crafting, or abandoning the final regulations.
The response was impressive, more than 10,000 people responded to the plea within 24 hours, Kibbe said. And as of Monday, more than 3,000 comments had been submitted.
On Monday, another tea party group, ForAmerica, launched its own push to oppose the IRS rules. Initially, it seemed that the two groups had launched an orchestrated rollout, but Kibbe said they didn’t coordinate with ForAmerica on the effort.
“The holiday season prevented what would typically have been a more coordinated response,” he noted.
ForAmerica has put six-figures behind its social media and digital ad effort, the group said.
Months after the IRS scandal first erupted, several other issues, and a largely fruitless congressional investigation by Republican lawmakers, has caused the issue to fade from prominence.
Tea party activists are still plenty angry at the IRS. But they are now forced to build public outrage in a very brief window of opportunity and at a time when the midterm elections are quickly heating up. And when the missteps by the Obama administration in implementing the health care law seems — at the moment — to be a more promising line of attack in the 2014 elections.
Yet Kibbe believes that if the IRS rules are allowed to go into effect, it could hamper the efforts of tea party groups seeking to operate in this cycle.
“I think it has to be about public opinion,” Kibbe said. “On any promulgation of regulations, it’s a very insider, complex, closed process by any definition.”
“We need to get people to pay attention to this in a very short period of time,” he said.
IRS officials say that they are proposing new rules to reduce or eliminate the guesswork that led some agency employees to unnecessarily stymie groups applying for tax-exempt status based on concerns that their political activity might exceed the legal limits for 501c(4) groups.
Among the rules are that a group’s primary activities cannot include voter registration drives, events with candidates that occur within 30 days of a primary or 60 days of a general election.
Tea party groups believe the rules would do more to hurt small, “mom and pop” 501(c)4 groups, rather than the big players like Republican operative Karl Rove’s group, Crossroads GPS, which spent tens of millions of dollars in the 2010 election.
But others say the rules are finally establishing some basic guidance in a wild wild west of campaign finance uncertainty.
“The truth of the matter is that the current rules are a morass and many nonprofits are using that to their advantage,” said Ken Gross, an election lawyer and former associate general counsel of the Federal Election Commission.
“Anything that would add clarity that would make the laws more enforceable I think end up being something that the groups oppose because they have used the current morass of laws to their benefit,” he said.
It’s the latest chapter of a saga over the targeting of conservative groups throughout the 2012 election that exploded over the summer of 2013. And it comes nearly a month and a half after the IRS first revealed its proposed rules in late November.
The IRS’s Thanksgiving-week announcement of new rules to rein in tax-exempt groups that participate in political activities caught many by surprise — especially conservative groups.
Most of Washington left town for the holiday season as the clock ticked on the roughly 90-day window for public comment on the proposed rules.
“They seem hell bent to do whatever they’re setting out to do because of the way they issued the rules and the fact that the comment period happens during the holiday season,” said Matt Kibbe, president of FreedomWorks.
“I think changing the rules in an election year is extraordinarily unfair and unprecedented,” he added.
Kibbe’s organization over the weekend urged its members and affiliates, which include tea party groups across the country, to submit comments opposing the proposed rules.
The comments would be considered by the IRS in crafting, or abandoning the final regulations.
The response was impressive, more than 10,000 people responded to the plea within 24 hours, Kibbe said. And as of Monday, more than 3,000 comments had been submitted.
On Monday, another tea party group, ForAmerica, launched its own push to oppose the IRS rules. Initially, it seemed that the two groups had launched an orchestrated rollout, but Kibbe said they didn’t coordinate with ForAmerica on the effort.
“The holiday season prevented what would typically have been a more coordinated response,” he noted.
ForAmerica has put six-figures behind its social media and digital ad effort, the group said.
Months after the IRS scandal first erupted, several other issues, and a largely fruitless congressional investigation by Republican lawmakers, has caused the issue to fade from prominence.
Tea party activists are still plenty angry at the IRS. But they are now forced to build public outrage in a very brief window of opportunity and at a time when the midterm elections are quickly heating up. And when the missteps by the Obama administration in implementing the health care law seems — at the moment — to be a more promising line of attack in the 2014 elections.
Yet Kibbe believes that if the IRS rules are allowed to go into effect, it could hamper the efforts of tea party groups seeking to operate in this cycle.
“I think it has to be about public opinion,” Kibbe said. “On any promulgation of regulations, it’s a very insider, complex, closed process by any definition.”
“We need to get people to pay attention to this in a very short period of time,” he said.
IRS officials say that they are proposing new rules to reduce or eliminate the guesswork that led some agency employees to unnecessarily stymie groups applying for tax-exempt status based on concerns that their political activity might exceed the legal limits for 501c(4) groups.
Among the rules are that a group’s primary activities cannot include voter registration drives, events with candidates that occur within 30 days of a primary or 60 days of a general election.
Tea party groups believe the rules would do more to hurt small, “mom and pop” 501(c)4 groups, rather than the big players like Republican operative Karl Rove’s group, Crossroads GPS, which spent tens of millions of dollars in the 2010 election.
But others say the rules are finally establishing some basic guidance in a wild wild west of campaign finance uncertainty.
“The truth of the matter is that the current rules are a morass and many nonprofits are using that to their advantage,” said Ken Gross, an election lawyer and former associate general counsel of the Federal Election Commission.
“Anything that would add clarity that would make the laws more enforceable I think end up being something that the groups oppose because they have used the current morass of laws to their benefit,” he said.
Tuesday, October 22, 2013
Former Orthodontist Convicted of Attempting to Scam the IRS of $36 Million
ALBANY, NY—Richard S. Hartunian, United States Attorney, Northern District of New York, announces that on October 21, 2013, before Senior U.S. District Court Judge Tomas J. McAvoy, a jury convicted Glenn Richard Unger (62, of Ogdensburg, New York) of the following offenses: obstructing and impeding the Internal Revenue Service (IRS); filing false claims against the United States; tax evasion; and passing fictitious obligations.
The evidence at trial showed that Glenn Richard Unger engaged in a multi-year scheme to obstruct and impede the IRS by filing numerous false and fraudulent claims with the IRS for payment of a refund of taxes totaling approximately $36 million. Between 2007 and 2011, Glenn Richard Unger filed 14 false tax returns claiming that he earned substantial income reported on IRS Forms 1099-OID, had substantial withholdings on that income, and was entitled to $36 million in tax refunds. Despite numerous warning letters from the IRS that his returns were frivolous, he continued filing false tax returns.
In addition to obstructing the IRS by filing false and fraudulent claims for refund, the evidence at trial also showed that Glenn Richard Unger attempted to evade payment of taxes he owed to the IRS. During 2004 and 2005, Glenn Richard Unger earned income and failed to file tax returns reporting that income. The IRS assessed taxes for those two years and also assessed penalties for filing frivolous tax returns. After the IRS filed a tax lien against Glenn Richard Unger, the defendant attempted to file a false document with the Saratoga County Clerk’s office attempting to release the lien. Evidence at trial also showed that Glenn Richard Unger tried to pay off a debt to another orthodontist with a fictitious document purported to be worth $200,000.
As a result of the conviction, the defendant is facing a statutory maximum term of imprisonment of 25 years and a maximum fine of $250,000. Sentencing is scheduled for March 10, 2014 in Albany, New York.
This prosecution resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigation, New York Field Office; the Federal Bureau of Investigation, Albany Field Office; the New York State Police, and the Treasury Inspector General for Tax Administration. The case was prosecuted by Assistant United States Attorney Ransom P. Reynolds (Northern District of New York) and Jeffrey Bender (Department of Justice Tax Division).
The evidence at trial showed that Glenn Richard Unger engaged in a multi-year scheme to obstruct and impede the IRS by filing numerous false and fraudulent claims with the IRS for payment of a refund of taxes totaling approximately $36 million. Between 2007 and 2011, Glenn Richard Unger filed 14 false tax returns claiming that he earned substantial income reported on IRS Forms 1099-OID, had substantial withholdings on that income, and was entitled to $36 million in tax refunds. Despite numerous warning letters from the IRS that his returns were frivolous, he continued filing false tax returns.
In addition to obstructing the IRS by filing false and fraudulent claims for refund, the evidence at trial also showed that Glenn Richard Unger attempted to evade payment of taxes he owed to the IRS. During 2004 and 2005, Glenn Richard Unger earned income and failed to file tax returns reporting that income. The IRS assessed taxes for those two years and also assessed penalties for filing frivolous tax returns. After the IRS filed a tax lien against Glenn Richard Unger, the defendant attempted to file a false document with the Saratoga County Clerk’s office attempting to release the lien. Evidence at trial also showed that Glenn Richard Unger tried to pay off a debt to another orthodontist with a fictitious document purported to be worth $200,000.
As a result of the conviction, the defendant is facing a statutory maximum term of imprisonment of 25 years and a maximum fine of $250,000. Sentencing is scheduled for March 10, 2014 in Albany, New York.
This prosecution resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigation, New York Field Office; the Federal Bureau of Investigation, Albany Field Office; the New York State Police, and the Treasury Inspector General for Tax Administration. The case was prosecuted by Assistant United States Attorney Ransom P. Reynolds (Northern District of New York) and Jeffrey Bender (Department of Justice Tax Division).
Friday, September 13, 2013
Former IRS Manager Sentenced to Prison
BATON ROUGE, LA—Acting United States Attorney Walt Green announced today that Chief U.S. District Judge Brian A. Jackson sentenced Jeanne L. Gavin, age 62, of Baton Rouge, Louisiana, to 12 months’ imprisonment, 12 months of supervised release following imprisonment, and a fine of $20,000. The sentence results from the defendant’s convictions for exceeding authorized access to a government computer, in violation of Title 18, United States Code, Section 1030, and engaging in a criminal conflict of interest, in violation of Title 18, United States Code, Section 205.
The defendant’s convictions stem from actions she took while serving as a supervisory Internal Revenue agent and group manager in the Baton Rouge Office of the Internal Revenue Service. In that role, the defendant supervised approximately 10 revenue agents responsible for determining federal tax liability and collecting taxes for individual, partnership, and corporate taxpayers.
The defendant admitted that, while working for the IRS, she engaged in a criminal conflict of interest with her IRS employment by owning and operating a private tax and accounting business which generated over $70,000. The defendant further admitted to using her position as an IRS manager to improperly cause subordinates to access IRS databases on over 2000 occasions for the benefit of her private tax and accounting business.
Acting U.S. Attorney Green stated, “My office, together with our federal, state, and local partners, will continue to aggressively pursue instances of public corruption wherever found. Public confidence in our governmental institutions, particularly those agencies entrusted to tax collection, is vitally important. The criminal acts of a few undermine such confidence, while overshadowing the honest efforts of the vast majority of public servants. My great appreciation to the Office of Treasury Inspector General for Tax Administration (TIGTA) who worked tirelessly with our office and the Federal Bureau of Investigation (FBI) in this important matter.”
Inspector General J. Russell George of TIGTA stated, “As our voluntary system of tax administration relies heavily upon the public’s confidence in a fair tax system, IRS employees must conduct themselves with the highest level of integrity and their conduct must be above reproach. Our message is loud and clear: TIGTA will vigorously investigate and recommend criminal prosecution for any IRS employee who violates the law.”
This matter was investigated by this office, TIGTA, and the FBI. The case is being prosecuted by Assistant United States Attorney Corey R. Amundson who serves as the Senior Deputy Chief of the Criminal Division.
The defendant’s convictions stem from actions she took while serving as a supervisory Internal Revenue agent and group manager in the Baton Rouge Office of the Internal Revenue Service. In that role, the defendant supervised approximately 10 revenue agents responsible for determining federal tax liability and collecting taxes for individual, partnership, and corporate taxpayers.
The defendant admitted that, while working for the IRS, she engaged in a criminal conflict of interest with her IRS employment by owning and operating a private tax and accounting business which generated over $70,000. The defendant further admitted to using her position as an IRS manager to improperly cause subordinates to access IRS databases on over 2000 occasions for the benefit of her private tax and accounting business.
Acting U.S. Attorney Green stated, “My office, together with our federal, state, and local partners, will continue to aggressively pursue instances of public corruption wherever found. Public confidence in our governmental institutions, particularly those agencies entrusted to tax collection, is vitally important. The criminal acts of a few undermine such confidence, while overshadowing the honest efforts of the vast majority of public servants. My great appreciation to the Office of Treasury Inspector General for Tax Administration (TIGTA) who worked tirelessly with our office and the Federal Bureau of Investigation (FBI) in this important matter.”
Inspector General J. Russell George of TIGTA stated, “As our voluntary system of tax administration relies heavily upon the public’s confidence in a fair tax system, IRS employees must conduct themselves with the highest level of integrity and their conduct must be above reproach. Our message is loud and clear: TIGTA will vigorously investigate and recommend criminal prosecution for any IRS employee who violates the law.”
This matter was investigated by this office, TIGTA, and the FBI. The case is being prosecuted by Assistant United States Attorney Corey R. Amundson who serves as the Senior Deputy Chief of the Criminal Division.
Monday, September 9, 2013
Marietta Man Sentenced to Federal Prison for Filing False Claims with the IRS
ATLANTA—Arnold Tobias Gervais, has been sentenced for defrauding the IRS of more than $3.4 million in federal income tax refunds while he was in state custody.
“Those who cheat the IRS take money away from everyone who pays his or her fair share of taxes,” said United States Attorney Sally Quillian Yates. “The United States Attorney’s Office and the IRS are on the lookout for tax cheats and will aggressively pursue those individuals who try to beat the system.”
“Today’s sentence hopefully reassures the public that individuals who attempt to enrich themselves at the expense of the United States Treasury will be held accountable,” stated Special Agent in Charge, Veronica Hyman-Pillot. “IRSCriminal Investigation will continue to aggressively pursue those individuals who utilize fraudulent methods to steal from the American taxpayer.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “It is hoped that today’s sentencing of Mr. Gervais, the second conviction for him on false tax filing related charges, will have a sufficient deterrent impact on him. The FBI will continue to work with its various law enforcement partners in investigating such matters involving income tax refund fraud.”
According to United States Attorney Yates, the charges, and other information presented in court: Gervais was convicted in May 2008 and sentenced to five years in prison by the Superior Court of Cobb County, Georgia, for theft by taking after he submitted a fraudulent tax return in an attempt to obtain a tax refund of more than $600,000 from the state of Georgia. Gervais was incarcerated on that charge from July 13, 2007 through February 26, 2010.
On March 16, 2009, while in state custody, Gervais caused his then wife to file a phony 2008 Form 1040 with the IRS. The tax return contained a claim for payment of an income tax refund in the amount of $811,073, which Gervais knew to be false, fictitious, and fraudulent.
In addition, Gervais filed or caused to be filed six more false claims for federal income tax refunds—five in his own name for tax years 2004, 2005, 2006, 2007, and 2009 and one in the name of an acquaintance for tax year 2009. All seven of the returns claimed false wages and federal tax withholding, and all seven of the returns falsely claimed that the taxpayer had earned a significant amount of wages from a fictitious company called “Safety Shoes & More Inc.,” which was allegedly located in Rome, Georgia. The returns also falsely claimed that the corporation had withheld from those wages a significant amount of federal income tax. The total amount of fraudulent tax refunds that Gervais sought from the IRS was $3,488,135. Of that amount, the IRS paid $2,832,26.
The United States Attorney’s Office filed two civil forfeiture actions, which resulted in the seizure of $2,232,012 from accounts controlled by Gervais, thereby reducing the out-of-pocket loss to the IRS.
Gervais, 34, of Marietta, Georgia, was sentenced by United States District Judge Timothy C. Batten, Sr. to serve the statutory maximum of five years in prison. He was also ordered to serve three years on supervised release following his prison term and ordered to pay $2,832,268 in restitution to the IRS. On January 16, 2013, Gervais pleaded guilty to a criminal information charging him with filing false claims for income tax refunds.
This case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation.
Assistant United States Attorneys Russell Phillips and Michael J. Brown prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.Presse-mails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
“Those who cheat the IRS take money away from everyone who pays his or her fair share of taxes,” said United States Attorney Sally Quillian Yates. “The United States Attorney’s Office and the IRS are on the lookout for tax cheats and will aggressively pursue those individuals who try to beat the system.”
“Today’s sentence hopefully reassures the public that individuals who attempt to enrich themselves at the expense of the United States Treasury will be held accountable,” stated Special Agent in Charge, Veronica Hyman-Pillot. “IRSCriminal Investigation will continue to aggressively pursue those individuals who utilize fraudulent methods to steal from the American taxpayer.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “It is hoped that today’s sentencing of Mr. Gervais, the second conviction for him on false tax filing related charges, will have a sufficient deterrent impact on him. The FBI will continue to work with its various law enforcement partners in investigating such matters involving income tax refund fraud.”
According to United States Attorney Yates, the charges, and other information presented in court: Gervais was convicted in May 2008 and sentenced to five years in prison by the Superior Court of Cobb County, Georgia, for theft by taking after he submitted a fraudulent tax return in an attempt to obtain a tax refund of more than $600,000 from the state of Georgia. Gervais was incarcerated on that charge from July 13, 2007 through February 26, 2010.
On March 16, 2009, while in state custody, Gervais caused his then wife to file a phony 2008 Form 1040 with the IRS. The tax return contained a claim for payment of an income tax refund in the amount of $811,073, which Gervais knew to be false, fictitious, and fraudulent.
In addition, Gervais filed or caused to be filed six more false claims for federal income tax refunds—five in his own name for tax years 2004, 2005, 2006, 2007, and 2009 and one in the name of an acquaintance for tax year 2009. All seven of the returns claimed false wages and federal tax withholding, and all seven of the returns falsely claimed that the taxpayer had earned a significant amount of wages from a fictitious company called “Safety Shoes & More Inc.,” which was allegedly located in Rome, Georgia. The returns also falsely claimed that the corporation had withheld from those wages a significant amount of federal income tax. The total amount of fraudulent tax refunds that Gervais sought from the IRS was $3,488,135. Of that amount, the IRS paid $2,832,26.
The United States Attorney’s Office filed two civil forfeiture actions, which resulted in the seizure of $2,232,012 from accounts controlled by Gervais, thereby reducing the out-of-pocket loss to the IRS.
Gervais, 34, of Marietta, Georgia, was sentenced by United States District Judge Timothy C. Batten, Sr. to serve the statutory maximum of five years in prison. He was also ordered to serve three years on supervised release following his prison term and ordered to pay $2,832,268 in restitution to the IRS. On January 16, 2013, Gervais pleaded guilty to a criminal information charging him with filing false claims for income tax refunds.
This case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation.
Assistant United States Attorneys Russell Phillips and Michael J. Brown prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.Presse-mails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
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