FOR IMMEDIATE RELEASE:

May 10, 2002 

Kesha Handy                           
P. O. Box 61129                      
Houston, TX 77208                  
Phone: 713/567-9335  
Fax: 713/718-3390
E-Mail: usatty.txs@usdoj.gov

HOUSTON WOMAN PLEADS GUILTY TO FILING FALSE TAX RETURNS
AUSA Al Balboni, Assistant U.S. Attorney
Phone: 713/567-9726

(Houston) Michael T. Shelby, United States Attorney for the Southern District of
Texas, announced that Zeona Milburn, pled guilty today before U. S. District Judge Melinda Harmon to a one count information charging her with aiding and assisting the preparation and filing of a false income tax return resulting in a tax harm to the United States in the amount of $50,132.00.

According to the plea agreement, Ms. Milburn worked part-time as an income tax return preparer from 1997 through 1999. During those years, she assisted in the preparation of false tax returns for at least fourteen individuals. Milburn admitted to fabricating Forms W-2 for the individuals to support the false returns. Milburn typed the phony W-2's using a typewriter at her home. All of the information on the W-2's, except the person's name and social security number, was fictitious. Milburn concealed her involvement by not signing the false returns as the paid return preparer. She was paid from $50.00 to $200.00 for every false return she prepared.

Milburn admitted specifically that she prepared a false tax return for a client which falsely reported approximately $10,000 of income allegedly earned by the client at Girling Health Care. The client, however, did not work for Girling during 1996 and did not earn any income from Girling. The additional fictitious income qualified the client for an Earned

Income Credit she otherwise would not be entitled to. The return claimed a fraudulent Earned Income Credit of $3,556.00 and a total refund in the amount of $4,786.00.

At sentencing has been on August 23, 2002, Milburn faces a maximum sentence of three years imprisonment, a fine of $250,000, and a one year term of supervised release.

This case was investigated by Special Agents of the Internal Revenue Service and was prosecuted by Assistant United States Attorney Al Balboni.

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