TYLER, Texas - U.S. Attorney John M. Bales announced today that a 46-year-old Pittsburg, Texas man has pleaded guilty to federal income tax violations in the Eastern District of Texas.

            BENNIE CHARLES BROWN pleaded guilty to conspiracy to defraud the government by preparing false claims for tax refunds today before U.S. Magistrate Judge John D. Love. 

            According to information presented in court, Brown operated a tax preparation service, Brown's Tax Service, in Daingerfield, Texas.  Beginning in January 2002, Brown devised a scheme to defraud the government by preparing and filing false tax returns with false Schedule F losses on behalf of the clients of Brown's Tax Service.  Schedule F forms are used by self-employed farmers and other agricultural interests to document expenses associated with farming.  Brown was indicted by a federal grand jury on Sep. 2, 2009 and charged with federal income tax violations.

            "As tax season approaches, professionals preparing taxes and individuals filing their taxes should know that tax fraud is a serious offense that will be prosecuted," said U.S. Attorney Bales.  "When an individual commits tax fraud, they are committing a crime against the entire community."

            Brown faces up to 10 years in federal prison .  A sentencing date has not been set.

            This case is being investigated by the Internal Revenue Service, Criminal Investigations Division, and prosecuted by Assistant U.S. Attorney Arnold Spencer.

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