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March 28, 2002
The United States Attorney's Office for the Northern District of California announced that Arlanda E. Johnson, 58, of Oakland, California, was indicted yesterday by a federal grand jury on 69 counts of willfully aiding and assisting in the preparation of false and fraudulent federal income tax returns in violation of Title 26, United States Code, Section 7206(2).
According to the indictment, Mr. Johnson is alleged to have aided and assisted 16 different clients in the preparation of 69 different false and fraudulent amended and original federal income tax returns spanning the five year period from 1994 through 1998. The indictment alleges that Mr. Johnson prepared amended and original returns which either inflated or fabricated Schedule A, C and E deductions and expenses, and also manipulated the filing status of clients. One prevalent pattern involved creating business losses by reporting nonexistent Schedule C income and then claiming non-deductible expenses which exceeded the income resulting in Schedule C losses.
The maximum statutory penalty for each count in violation of Title 26, United States Code, Section 7206(2) is three years and a fine of $250,000. However, any sentence following conviction would be dictated by the Federal Sentencing Guidelines, which take into account a number of factors, and would be imposed in the discretion of the Court. An indictment simply contains allegations against an individual and, as with all defendants, Mr. Johnson must be presumed innocent unless and until convicted.
The prosecution is the result of a three year investigation by agents of the Internal Revenue Service's Criminal Investigation Division. David L. Denier is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kathy Tat.
A copy of this press release and related court documents may be found on the U.S. Attorney's Office's website at www.usdoj.gov/usao/can.
All press inquiries to the U.S. Attorney's Office should be directed to Assistant U.S. Attorney Matthew J. Jacobs at (415)436-7181.
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