Former Cleveland resident charged with tax fraud

A 13-count indictment charging a former Cleveland woman with tax fraud, obstruction and related charges was unsealed, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Troy Stemen, Acting Special Agent in Charge, Criminal Investigation, Cincinnati Field Office.

Lerona Renay Shelton, 46, of Birmingham, Alabama, pleaded not guilty at his arraignment. Shelton is charged wtih conspiracy to defraud the United States, six counts of aiding and abetting tax returns, obstruction of an official proceeding, four counts of making false statements and one count of perjury.

Shelton in 2010 obtained taxpayer names, addresses and W-2 forms that claimed false employments, wages and taxes withheld. Shelton sent this information to Sean Houston, of Cleveland, who prepared and submitted false tax returns to the IRS, according to the indictment.

Shelton was questioned in the Grand Jury about his activities with Houston and gave answers that he knew to be false, according to the indictment.

Houston pleaded guilty on April 13, 2015 to one count of conspiracy to file false claims for income tax refunds with the IRS and 10 counts of filing false claims for income tax refunds with the IRS.  He is scheduled to be sentenced on November 24, 2015.

Another related defendant, Nikita Griffin, pleaded guilty on April 14, 2015 to one count of conspiracy to file false claims for income tax refunds with the IRS.  She is scheduled to be sentenced on November 19, 2015.

The case is being prosecuted by Assistant U.S. Attorney James V. Moroney following an investigation by IRS-CI.

If convicted, the defendant's sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.

An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.