United States Attorney Leura G. Canary Middle District of Alabama

MONTGOMERY MAN PLEADS GUILTY TO ILLEGAL POSSESSION OF
FIREARM AND TAX FRAUD CHARGES

MONTGOMERY, Ala.— Leura G. Canary, United States Attorney for the Middle District of Alabama, announced today the guilty plea of a Montgomery man on firearms and tax fraud charges. Michael R. Jones, age 33, pled guilty in U.S. District Court to both counts of a two-count felony information charging him in Count 1 with being a convicted felon in possession of a firearm and in Count 2 with conspiring to defraud the United States, in violation of Title 18, United States Code, Section 371. Jones entered his plea today before United States Magistrate Judge Susan R. Walker.

According to the plea agreement and information, between August and October 2006, Jones conspired with others to defraud the United States by defeating the lawful Government functions of the Internal Revenue Service ("IRS") with respect to federal income tax returns. As part of this conspiracy:
a. Jones paid individuals approximately $100 in exchange for these individuals providing Jones with their social security numbers and dates of birth.
b. Jones provided this information to an individual identified in the Information as "TF"; Jones also provided TF with Jones's bank account information at MAX Federal Credit Union ("MAX").
c. TF caused to be filed federal income tax returns using social security numbers provided to TF by Jones and others. The returns claimed refunds well in excess of the actual refunds, if any, due the taxpayers.
d. Jones received by direct deposit into his account at MAX nine of the refunds issued as a result of these false returns, in the total amount of approximately $76,869, and divided the proceeds with TF.

In January 2007, Jones–who had previous felony convictions for assault and marijuana possession–possessed in his residence in Montgomery a Taurus, Model PT140, .40 Caliber Pistol. It is a violation of federal law for a convicted felon to possess a firearm.

When he is sentenced by Chief Judge Mark E. Fuller, Jones faces a statutory maximum penalty of 15 years imprisonment, an order of restitution, and a fine of up to $500,000. Jones has been detained since his arrest on March 9, 2007.

The case was investigated by the Internal Revenue Service, Criminal Investigation Division, and the Bureau of Alcohol Tobacco and Firearms, with the assistance of Alabama law enforcement officials from the Board of Pardons and Paroles and the Attorney General’s Medicaid Fraud Control Unit. The case is being prosecuted by Assistant U.S. Attorney Andrew O. Schiff.