News and Press Releases

Tax Preparer Sentenced to Almost Three Years in Prison

FOR IMMEDIATE RELEASE
May 1, 2012

Las Vegas, Nev. – A Las Vegas tax preparer known as "The Money Man," has been sentenced to almost three years in federal prison for filing false tax returns for clients and obstructing the IRS, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

Vernon K. Newson, 54, of Las Vegas, was sentenced on Monday, April 30, 2012, by Senior U.S. District Judge Howard D. McKibben, to 33 months in prison, three years of supervised release, and ordered to pay a $5,000 fine. Newson was convicted by a jury on November 21, 2011, of 22 counts of preparation of false tax returns, one count of obstruction of the enforcement of the tax laws, and two counts of presenting a false tax return to the government.

According to the court records, Newson operated a business in Las Vegas called Perdiem, Inc., dba "The Money Man," and provided payday loans, bill-paying services, DMV registration, and tax return preparation. Between the 2002 and 2006 tax years, Newson filed 22 false tax returns for 10 clients. Newson padded customers' tax returns with false deductions and credits, invented businesses to create business losses, and inflated W-2 wages and itemized deductions. Newson also attempted to cover up his activities by telling clients to lie to auditors, and presented two other false tax returns in 2006 for "undercover" businesses which were being tracked by the IRS. The tax loss to the government was determined by the court to be approximately $142,949.

The case was prosecuted by Assistant U.S. Attorney Roger Yang and Trial Attorney Brian R. Young of the Department of Justice Tax Division, and investigated by IRS Criminal Investigation.

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