News and Press Releases

TWO MIAMI RESIDENTS SENTENCED ON TAX PREPARATION CONSPIRACY

FOR IMMEDIATE RELEASE
January 11, 2010

Jeffrey H. Sloman, United States Attorney for the Southern District of Florida, and Daniel W. Auer, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, announced that defendants Allen K. Smith, and co-defendant Mark Thomas, both of Miami, were sentenced today by U.S. District Court Judge Ursula Ungaro for their participation in a tax preparation conspiracy. Each defendant was sentenced to 21 months’ imprisonment, to be followed by 3 years of supervised release.

Both defendants previously pled guilty to conspiring to defraud the United States for the purpose of impeding the Internal Revenue Service, in violation of Title 18, United States Code, Section 371. As part of their plea agreements, each defendant agreed to pay $380,057.00 in restitution to the Internal Revenue Service.

According to court documents, from approximately 2001 to 2005, Smith and Thomas conspired to defraud the U.S. by preparing fraudulent tax returns that contained fictitious or inflated deductions, often for medical expenses. The individuals for whom Smith and/or Thomas prepared false returns had legitimate Forms W-2, 1099, 1098 or other documents evidencing income and legitimate deductions. On virtually every return Smith and/or Thomas prepared, the taxpayer claimed a refund that was exactly equal to the withheld amount. Smith and Thomas often represented to their clients that the clients could receive refunds equal to the amount of taxes withheld.

Mr. Sloman commended the investigative efforts of the Internal Revenue Service, Criminal Investigation Division. This case is being prosecuted by Assistant United States Attorney Rosa Rodriguez-Mera.

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A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

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