Memphis Man Sentenced To 33 Months In Prison For Tax Fraud

Memphis, TN – Terry Green, 60, of Memphis, TN, was sentenced yesterday by U.S. District Judge John T. Fowlkes to 33 months in prison for tax fraud, announced U.S. Attorney Edward L. Stanton III.

According to facts revealed in the indictment and during the sentencing hearing, from 2005 to 2009, Green and his associate, Herman Shaw, ran several tax preparation businesses in Memphis (Computax and Shaw's Tax Express). Through these businesses, Green and Shaw routinely filed false federal income tax returns for their clients and generated fees for their tax businesses as a result. The returns falsely reflected losses and expenses arising from fictitious home-based businesses, such as cutting hair and landscaping. This would inflate the refund amount for the defendants' clients.

As a result of the scheme, numerous false returns were approved by the IRS, resulting in over $400,000 of loss to the United States Government. In June, Shaw, 33, of Cordova, TN, was sentenced to 26 months in prison. Both defendants were ordered to pay restitution in the amount of $404,078.

This case was investigated by IRS-CID and was prosecuted by Assistant United States Attorney Stephen Hall on behalf of the government.