ATLANTA — After pleading guilty to conspiring to defraud the United States, a man from Milledgeville, Georgia is now under criminal investigation by the Internal Revenue Service. After promoting nationwide tax fraud, the man caused millions of dollars in false tax refunds to be claimed.
The Georgia man pleaded guilty on Wednesday, the Department of Justice reported in a press release. The man was involved in recruiting clients and preparing false tax returns on their behalf. For two years, the Milledgeville native and other co-conspirators held seminars across the country, publicizing a scheme that would allow participants to receive tax refunds by falsely reporting mortgages and other debts.
After including over 200 participants across at least 19 states within the nationwide scheme, the man collectively sought over $25 million in refunds from the IRS. The false tax returns claimed that banks and other financial institutions had withheld income taxes from their participants, entitling clients to falsely acquired refunds, the Department of Justice said.
As part of his plea deal, the Georgia man admitted that he and his co-conspirators charged participants $10,000 to $15,000 in fees for their services. He received approximately $1 million in total for his participation in the scheme. Now he could also be facing a lengthy prison sentence.
He faces a maximum penalty of five years in prison for conspiring to defraud the United States, as well as another three years in prison for each of seven total counts of aiding and assisting in the preparation and filing of a false tax return. He also faces restitution and monetary penalties, the Department of Justice said.
The Internal Revenue Service is currently undergoing a criminal investigation into the case.