NEWS RELEASE
UNITED STATES ATTORNEY'S OFFICE
WESTERN DISTRICT OF VIRGINIA
John L. Brownlee
United States Attorney
Patricia A. Grisetti
Media Contact
Thomas B. Mason Building
105 Franklin Rd., S.W.
Roanoke, Virginia 24011
(540) 857-2250
FAX (540) 857-2180
July 24, 2002
United States Attorney John L. Brownlee announced today that a federal
grand jury in Abingdon issued an indictment against DONALD R. HILL,
of Abingdon, Virginia. HILL, an accountant, was charged in a 41-count
indictment with one count of conspiracy to aid and assist in the filing
of false income tax returns and to commit bank fraud, 19 counts of aiding
and assisting in the filing of false income tax returns, 19 counts of
bank fraud, and two counts of perjury. According to the indictment,
HILL conspired with others to prepare false W-2 forms showing false
wages and tax withholdings which were used to prepare 19 false income
tax returns for 1996 and 1997 that falsely included the false wages
and tax withholdings, false claims of dependents and head of household
filing status, and false claims of entitlement to the earned income
tax credit. The false tax returns were electronically filed with the
IRS and used to obtain refund anticipation loans from Beneficial National
Bank and Mellon Bank. According to the indictment, the loan checks were
cashed and the proceeds of approximately $44,000 split among HILL and
his co-conspirators.
The indictment also charges HILL with committing perjury while testifying before a grand jury and in the trial of Kim Prater in federal court last year on related charges.
If convicted of all counts HILL faces a statutory maximum penalty of five years in prison and a $250,000 fine for the conspiracy and each perjury charge, three years in prison and a $250,000 fine for each count of aiding and assisting in filing false income tax returns, and 30 years in prison and a $1 million fine for each count of bank fraud.
The investigation of the case was conducted by the Bristol office of the Internal Revenue Service's Criminal Investigation Division. Assistant United States Attorney Rick Mountcastle and Department of Justice - Tax Division attorney Gregory Tortella will prosecute the case. For further information, please contact AUSA Mountcastle at 276-628-4161.
A Grand Jury indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
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