April 18, 2012
Department of Justice
United States Attorney William C. Killian Eastern District of Tennessee
Tennessee Engineering Consultant and Wife Charged With Tax Crimes
KNOXVILLE, Tenn. – On April 17, 2012, a federal grand jury returned a four count indictment charging Beverly S. Beavers, 67, and James E. Beavers, 67, of Knoxville, Tenn. ,with conspiracy to defraud the United States and filing false claims for tax refunds.
According to allegations in the indictment, Beverly and James Beavers filed a false 2008 personal tax return claiming they were entitled to a refund in the amount of $591,123. This return was prepared by Penny Jones, a partner in PMDD Services LLC, an Idaho-based tax return preparation firm. Upon receiving the fraudulent refund, the Beavers paid $59,405, to Jones and the other principals of PMDD Services.
The indictment further alleges that the Beavers filed amended tax returns for 2006 and 2007, seeking fraudulent tax refunds of $193,056 and $202,625, respectively.
Charges in the indictment also allege that both Beavers took steps to hide their assets from possible Internal Revenue Service (IRS) collection efforts, including transferring the real estate title to their personal residence and a store owned by Beverly Beavers to nominee trusts. Beverly Beavers owned a formalwear store in Knoxville. James Beavers was previously employed as the research director of an academic engineering institute at the University of Tennessee, and as a private engineering consultant.
In July 2011, a federal court in Idaho permanently enjoined Penny Jones from filing federal tax returns on behalf of others. In November 2011, Jones, other alleged principals of PMDD Services, and several other persons were charged in the Southern District of Florida with tax crimes, including conspiracy to defraud the United States and filing false claims. That case is scheduled for trial in October 2012.
If convicted, the defendants each face a maximum potential sentence of 20 years in prison and a criminal fine up of to $1 million. Both may also be required to pay restitution to the IRS.
An indictment is merely a formal accusation of a crime. The defendants are presumed innocent unless and until their guilt is proved beyond a reasonable doubt.
The case was investigated by Special Agents of IRS - Criminal Investigation, and is being prosecuted by Trial Attorneys Jonathan Marx and Jed Silversmith of the Justice Department's Tax Division, and Assistant U.S. Attorney Charles E. Atchley, Jr., of the Eastern District of Tennessee.