Jeffrey Charles, a resident of Grimstead, Va., was sentenced today to serve 46 months in federal prison for conspiring with his daughter and son-in-law to defraud the United States, aiding and assisting in the preparation of false tax returns in his daughter’s name, and filing a false tax return in his own name, the Justice Department and the Internal Revenue Service (IRS) announced.
On Nov. 6, 2012, following a six-day jury trial in Newport News, Va., Charles was convicted of one count of conspiracy, three counts of aiding and assisting in the preparation of false tax returns, and one count of filing a false tax return. According to the evidence presented at trial, Charles, a registered nurse and the administrator of a rehabilitation center, conspired with his daughter and son-in-law to impair and impede the IRS in ascertaining, computing, assessing and collecting federal income taxes. The evidence also proved that Charles aided and assisted in the preparation of three false tax returns in his daughter’s name for tax years 2000, 2001 and 2005, and attached false documents to each tax return.
Finally, the evidence at trial also established that Charles filed a false tax return in his own name for tax year 2006 in which he allegedly falsely reported earning $0.00 income. Charles joined American Rights Litigators (ARL), a Florida-based organization, and paid ARL to send fraudulent documents to the IRS on his behalf and on behalf of his daughter. In August 2004, a federal district judge permanently enjoined ARL and two of its promoters from the sale of a nationwide tax scam. In August of 2010, three promoters of ARL were each sentenced in the District of Columbia to 10 years in prison along with ARL founder Eddie Ray Kahn, who received a 20 year sentence.
Senior Judge Henry Coke Morgan Jr. also ordered Charles to pay over $300,000 in restitution to the IRS as part of his sentence.
In a separate but related case, Charles’s co-conspirators, his daughter and son-in-law Kathryn Miles and John Miles, each pleaded guilty to conspiracy and were sentenced to federal prison.
Assistant Attorney General Kathryn Keneally for the Justice Department’s Tax Division commended the investigative efforts of special agents of IRS Criminal Investigation, and Tax Division Trial Attorney Justin K. Gelfand and Assistant U.S. Attorney Brian Samuels, who prosecuted the case.