United States Attorney Leura G. Canary Middle District of Alabama

TWO MONTGOMERY WOMEN PLEAD GUILTY TO TAX FRAUD CHARGES
Women Prepared Fraudulent Income Tax Returns for Taxpayers

MONTGOMERY, ALABAMA—Leura G. Canary, United States Attorney for the Middle District of Alabama, announced today the guilty pleas of two Montgomery women on tax fraud charges. Tumekia L. Sanders and Felicia Shanta Jackson, both age 29, pled guilty in U.S. District Court to one-count felony informations charging them with conspiring to defraud the United States, in violation of Title 18, United States Code, Section 371. Jackson entered her plea on Monday, August 28, 2007, before United States Magistrate Judge Wallace Capel; Sanders entered her plea on Friday, August 24, 2007, before United States Magistrate Judge Terry F. Moorer.

According to the plea agreement and information, in early 2005, the defendants were employed by a tax preparation business in Montgomery, Alabama. Following the instructions of owner of the business, the defendants caused approximately 22 federal income tax returns to be filed with the Internal Revenue Service that falsely claimed refunds that substantially exceeded the actual refund, if any, to which the taxpayer was entitled. In particular, the returns inflated the taxpayers’ income in order to render the taxpayers eligible for earned income tax credit (or to entitle the taxpayer to a larger earned income tax credit). The business owner paid the defendants approximately $400-450 for each return they prepared and filed.

When they are sentenced later this year, Jackson and Sanders each face a statutory maximum penalty of 5 years imprisonment, an order of restitution, and a fine of up to $250,000 or, if greater, twice the loss to the IRS. Both defendants were released pending sentencing on a $25,000 unsecured bond.

The case was investigated by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Andrew O. Schiff.