Retired Henderson Fireman Sentenced To Prison For Tax Evasion

LAS VEGAS, Nev. – A retired Henderson fireman convicted by a jury in October of five counts of willful tax evasion and one count of filing a false and fictitious tax return, has been sentenced to 21 months in prison, three years of supervised release, and ordered to pay the IRS $177,310 in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

            Dwight C. Jackson, 53, of Henderson, was sentenced on March 18, 2013, by Senior U.S. District Judge Philip M. Pro.  Jackson is released on a personal recognizance bond and must report to federal prison by July 24, 2013. 

            “If you knowingly cheat on your taxes, you will likely be convicted of a felony offense and will go to prison,” said U.S. Attorney Bogden.  “Cheating on your taxes is never a smart option - no matter who you are, your income level, your employer, your profession or your place of business.”

            From 2004 through 2008, Jackson was employed as a fireman with the City of Henderson and earned over $113,000 each year.  The approximate federal income tax he owed for those years was between $22,000 and $29,000.  Jackson willfully attempted to evade the federal taxes he owed by substantially understating his wages on his individual tax return, falsely claiming the earned income tax credit, untimely filing his returns for 2004 to 2006, submitting false W-4 forms with his employer claiming he was exempt from federal tax withholdings, and concealing his actual income from the IRS. For the year 2009, Jackson knowingly presented a false income tax return which contained a “corrected” W-2 form stating that he earned no wages in 2009 when he truth, he had earned $247,492 that year from the City of Henderson. 

According to the evidence presented by the government at trial, Jackson carried out his scheme with the help of a southern California man, James Mattatall, whom he met at a sovereign citizen’s meeting in Las Vegas and whom prepared Jackson’s tax returns.  Sovereign citizens take the position that they are answerable only to common law and are not subject to any statutes or proceedings at the federal, state or municipal levels.  Sovereign citizens do not recognize U.S. currency and believe most forms of taxation are illegitimate.

“For all of us in public service, we are profoundly aware that our salaries come from taxes,” said Paul Camacho, Special Agent in Charge of IRS Criminal Investigation in Nevada.   “It would be insulting to all the hard working Americans who paid these taxes for any of us to willfully evade paying our fair share.  This sentence is a strong message to anyone who chooses satisfying greed over duty.”  

The case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney J. Gregory Damm.

Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.