Retired Henderson Fireman Convicted of Felony Tax Crimes
Las Vegas, Nev. – A retired Henderson fireman was convicted by a federal jury today of multiple counts of willful tax evasion and filing a false claim with the IRS, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Dwight C. Jackson, 53, of Henderson, was convicted of five counts of willful tax evasion and one count of filing a false and fictitious claim, and is scheduled to be sentenced on Jan. 28, 2013, at 10:00 a.m. and faces up to 30 years in prison and fines of up to $1.5 million.
"Knowingly cheating and not paying your taxes is a crime, and will likely result in federal criminal charges," said U.S. Attorney Bogden. "Unless you like the prospect of spending time in federal prison, it is best to avoid cheating on your taxes."
According to the charges filed against Jackson, during the years 2004 through 2008, Jackson was employed as a fireman with the City of Henderson and earned over $113,000 each year. The approximate federal income tax he owed for those years was between $22,000 and $29,000. Jackson willfully attempted to evade the federal taxes he owed by substantially understating his wages on his individual tax return, falsely claiming the earned income tax credit, untimely filing his returns for 2004 to 2006, submitting false W-4 forms with his employer claiming he was exempt from federal tax withholdings, and concealing his actual income from the IRS. For the year 2009, Jackson knowingly presented a false income tax return which contained a "corrected" W-2 form stating that he earned no wages in 2009 when he truth, he had earned $247,492 that year from the City of Henderson.
According to the evidence presented by the government at trial, Jackson carried out his scheme with the help of a southern California man, James Mattatall, whom he met at a sovereign citizen's meeting in Las Vegas and whom prepared Jackson's tax returns. Sovereign citizens take the position that they are answerable only to common law and are not subject to any statutes or proceedings at the federal, state or municipal levels. Sovereign citizens do not recognize U.S. currency and believe most forms of taxation are illegitimate.
"As government employees we are profoundly aware that our wages come through taxes and we all have a duty to pay our fair share," said Paul Camacho, Special Agent in Charge of IRS Criminal Investigation in Nevada. "Temerity is the word that comes to mind when I think about Mr. Jackson's actions."
The case was investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney J. Gregory Damm.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.