JOHN LABEE PLEADS GUILTY TO AIDING AND ASSISTING IN THE PREPARATION OF FALSE TAX DOCUMENTS, MAKING FALSE STATEMENTS ON INCOME TAX RETURNS AND LYING TO A FEDERAL GRAND JURY
JOHN LABEE, age 35, a resident of Slidell, Louisiana plead guilty yesterday before United States District Judge Carl J. Barbier to aiding and assisting in the preparation of false tax documents, lying on personal income tax returns, and making false declarations before the Grand Jury, announced United States Attorney Kenneth Allen Polite, Jr.
According to court documents, LABEE owned and operated several tax preparation companies, including Millenium Bookkeeping Services (“Millenium” [sic]) and IP Financial Services (“IP”), which prepared the taxes of numerous clients. As a regular part of his business LABEE prepared tax returns that contained false or fraudulent information for his clients, including false W-2s that fabricated the amount of federal income tax that had been withheld and inflated business expenses and deductions. LABEE prepared and filed approximately 460 federal tax returns that falsely claimed, and he charged substantial preparation fees, which he failed to report on his personal income tax returns. LABEE’S conduct resulted in an intended loss to the United States, of approximately $2,242,121 of federal income tax withholdings, and he failed to pay approximately $163,000 in federal taxes personally.
LABEE faces a maximum term of imprisonment of 11 years in prison, followed by up to 3 years of supervised release, and restitution as ordered by the Court. Sentencing has been scheduled for March 20, 2014, at 9:30 am.
The case was investigated by agents with the Internal Revenue Service. The case is being prosecuted by Assistant United States Attorney Jordan Ginsberg.
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims or have knowledge of waste, abuse, or allegations of mismanagement involving disaster relief operations, contact the National Center for Disaster Fraud toll free at: (866) 720-5721. You can also fax information to: (225) 334-4707 or e-mail it to: firstname.lastname@example.org