FOR IMMEDIATE RELEASE |
THURSDAY, MAY 27, 2004
TDD (202) 514-1888
JUSTICE DEPARTMENT SUES TO STOP ALLEGED FRAUDULENT
Norfolk Man Alleged To Have Prepared False Tax Returns
WASHINGTON, D.C. - The Justice Department today filed a lawsuit asking a federal court to stop Ronald M. Green of Norfolk, Virginia, from preparing fraudulent federal tax returns and from unlawfully interfering with the Internal Revenue Service. This civil injunction case is part of the Justice Department’s nationwide crackdown on tax scams, including the preparation of fraudulent federal tax returns.
According to the complaint, filed in the U.S. District Court for the Eastern District of Virginia in Norfolk, Green’s fraudulent returns have cost the United States more than $1.4 million in lost revenue. The complaint also alleges that Green prevents some of his customers from cooperating with the IRS by threatening to sue them for $1 million if they discuss his return preparation service with anyone.
“People who prepare fraudulent tax returns for themselves or others will be held accountable," said Eileen J. O'Connor, Assistant Attorney General for the Department of Justice’s Tax Division. “The Justice Department will take appropriate action to stop activities that defraud the federal treasury.”
The complaint alleges that Green reduces or eliminates his customers’ income tax liability by deducting nondeductible personal expenses, such as cable television and cellular telephone bills, as well as fictitious expenses for sham trusts. The complaint also alleges that Green files trust returns for sham trusts and falsely reports that his customers’ income is not taxable.
Today’s court papers allege that Green and several of his customers purchased sham trusts from Trust Educational Services, also known as National Trust Services. On June 2, 2003, a Federal court in California permanently enjoined that organization from organizing, promoting, marketing, or selling its abusive trust schemes. For further information, see United States v. Roderick A. Prescott and Trust Educational Services (TES), Civil No. 02-CV-0692 (S.D. Cal.), available at http://www.usdoj.gov/tax/txdv03332.htm.
For copies of documents filed in this case and for information on other recent tax scam enforcement actions, go online to ;http://www.usdoj.gov/tax/taxpress2004.htm.