U.S. Department of Justice
United States Attorney
Northern District of California
11th Floor, Federal Building
450 Golden Gate Avenue, Box 36055
San Francisco, California 94102
FOR IMMEDIATE RELEASE
Tel: (415) 436-7200
Fax: (415) 436-7234
March 16, 2004
The United States Attorney's Office for the Northern District of California announced today that Troy Holland was sentenced yesterday to five years in prison for preparing false tax returns in violation of 26 U.S.C. § 7206(2). The sentence was handed down by U.S. District Court Judge Claudia Wilken in Oakland following the defendant's conviction by a federal jury on 27 counts of preparing false returns.
Troy Holland, formerly of Danville, California, was indicted by a federal grand jury on May 25, 2000. Mr. Holland created a business called TMG Financial. Mr. Holland used TMG Financial to prepare false Schedule Cs for clients containing substantial bogus losses. These losses were then used to offset his clients' legitimate W-2 wages causing his clients' taxable income and tax due to be significantly less than the true amounts required to be reported to the IRS. With the smaller tax due amounts for his clients, Mr. Holland was able to get back most, if not all, of his clients' income tax withholding in the form of tax refunds. Mr. Holland was paid 50 percent of any tax refund.
Judge Wilken sentenced the defendant to five years in federal prison, restitution in the amount of $292,878, and three years of supervised release and she also ordered Mr. Holland never to prepare tax returns again for others. The defendant had been remanded into custody several weeks ago. The court ruled at sentencing that the defendant attempted to obstruct the investigation and perjured himself at trial when he testified.
The prosecution was the result of an investigation by agents of the IRS-Criminal Investigation Division. Jay R. Weill is the Assistant U.S. Attorney who prosecuted the case.
A copy of this press release may be found on the U.S. Attorney's Office's website at www.usdoj.gov/usao/can. Related court documents and information may be found on the District Court website at www.cand.uscourts.gov or on http://pacer.cand.uscourts/gov.
All press inquiries to the U.S. Attorney's Office should be directed to Assistant U.S. Attorney Matthew J. Jacobs at (415)436-7181.