Shiloh Tax Service Operators Plead Guilty to Conspiracy to Submit False Federal Tax Returns
Carey E. Herron, 39, of St. Peters, Mo., and Delaun M. Leflore, 38, of Belleville, Ill., have each plead guilty on January 25, 2012, to Conspiracy to Defraud the IRS by submitting false tax returns in order to make false claims for tax refunds. Each faces a prison term of up to 10 years, a fine of up to $250,000, and 3 years’ supervised release at their sentencing, currently scheduled for May 4, 2012.
Herron and Leflore admitted as part of the plea proceedings that from at least 2009, through April 2011, d/b/a Prime Time Tax Services, they participated in a tax preparation scheme to obtain and help others obtain payment of refunds for false claims to the IRS, claims which they knew they were not entitled to. As part of the conspiracy, they created false Schedule C information to falsely inflate the amount of federal fax refund that taxpayers were entitled to receive. When certain individuals would receive their refund, they would be escorted to a check cashing business by a representative of Prime Time Tax Services to cash the refund check and pay the representative an extra fee of generally $500 cash. Neither Herron nor Leflore were authorized to e-file tax returns and used another tax preparer’s electronic identification number to file the false returns. The total refunds paid out by the Internal Revenue Service for all of the tax returns prepared by Prime Time Tax Services was approximately $2.5 million. Of those total refunds, the Internal Revenue Service paid out approximately $1.6 million in federal tax refunds for Prime Time Tax Service prepared returns that declared Schedule C self-employment income.
The investigation was handled by the Internal Revenue Service, Criminal Investigations. The prosecution is being handled by Assistant United States Attorney Norman Smith.
If you suspect or know of an individual or company that is not complying with the tax laws, you may report this activity by contacting the local Internal Revenue Service/Criminal Investigation Office at (618) 622-2160 or by mailing information to: Internal Revenue Service, Fresno, CA 93888.