FOR IMMEDIATE RELEASE
October 27, 2011
CAMDEN, N.J. – Jerry Julian was sentenced today to 36 months in prison for his scheme to defraud the IRS by fraudulently obtaining tax refunds on behalf of himself and fellow inmates of a New Jersey state prison, U.S. Attorney Paul J. Fishman announced.
Julian, 47, of Seaside Heights, N.J., previously pleaded guilty to an Information charging him with one count of aiding and assisting in the preparation of false and fraudulent tax returns. He entered his guilty plea before U.S. District Judge Noel L. Hillman, who also imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Julian admitted that from approximately September 2006 through early 2007, while he was incarcerated at Riverfront State Prison in Camden, he operated a scheme to defraud the IRS by helping other inmates at the prison prepare and file false tax returns designed to trigger tax refunds to which they were not entitled for tax years 2003, 2004, and 2005.
Julian told his fellow inmates the federal government paid the prison minimum wage for the prisoners’ labor, that employment taxes were withheld from those amounts, and that the prisoners were entitled to claim a refund of the amounts withheld. In reality, prisoners were paid no more than $5 per day from which no taxes were withheld.
Julian admitted that the filing of the false returns generally resulted in refunds, and that he assisted in preparing and filing approximately 110 tax returns for more than 60 inmates. The scheme resulted in a total tax loss to the IRS of nearly $215,000.
In addition to the prison term, Judge Hillman sentenced Julian to one year of supervised release and ordered him to pay $214,844.20 in restitution.
U.S. Attorney Fishman credited special agents of IRS–Criminal Investigation, under the direction of Victor W. Lessoff, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Lori Koch Esq., Assistant Federal Public Defender, Camden