FOR FURTHER INFORMATION CONTACT
AUSA VICKIE E. LEDUC at 410-209-4885
MAY 10, 2006
FOR IMMEDIATE RELEASE
HYATTSVILLE CPA CONVICTED IN SCHEME
TO FILE FALSE TAX RETURNS
Repeatedly Falsified Business Expenses
GREENBELT, Maryland - Uche Kamalu, age 47, a certified public accountant of Hyattsville, Maryland was convicted by a federal jury yesterday on 10 counts of causing the filing of false income tax returns and one count of obstructing the due administration of the tax laws, announced United States Attorney Rod J. Rosenstein.
According to the testimony presented to the jury, Kamalu operated a tax return preparation service in Takoma Park, preparing federal and state income tax returns for individual clients. The evidence showed that Kamalu fraudulently led his clients to believe that certain mileage and other unreimbursed business expenses were expenses for which the client could claim an itemized deduction. In order to claim the expenses as deductions, Kamulu would prepare a tax return for the client, either falsely inflating the number of miles that were properly deductible or falsely claiming mileage when the client was not eligible for the deduction.
As a result, Kamalu filed dozens of false federal income tax returns with the IRS on behalf of numerous clients he represented for the tax years 1999 through 2002, seeking an unlawful benefit for his client taxpayers in the form of reduced income tax liabilities and increased income tax refunds. Because many of the taxpayers were not eligible to claim any business expense, by preparing the forms, Kamalu was able to charge an additional fee to the client and profit from the false form.
Kamulu faces a maximum penalty of three years in prison on each count. U.S. District Judge Alexander Williams, Jr. has scheduled sentencing for July 24, 2006 at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the investigative work performed by the Internal Revenue Service - Criminal Investigation. Mr. Rosenstein also thanked Assistant U.S. Attorneys Michael Pauzé and Stuart Berman, who are prosecuting the case.
This page last modifiedMay 11, 2006