PRESS RELEASE
CONTACT: James K. Vines
United States Attorney
Robert C. Watson
Assistant U.S. Attorney
NASHVILLE RETURN PREPARER INDICTED ON TAX CHARGES
Nashville, TN - April 11, 2003 - James K. Vines, United States Attorney for the Middle District of Tennessee, and Sherree W. Preston, Special Agent in Charge for IRS Criminal Investigation Nashville Field Office, announced today that James Leon Wray has been indicted by a federal grand jury. The indictment, dated April 10, 2003, charges Wray with 29 counts of aiding or assisting in the preparation of fraudulent tax returns.
According to the indictment, Wray willfully aided and assisted in the preparation of other individuals tax returns that claimed deductions for certain specific items that he knew and believed to be false and that the individuals ere not entitled to claim such deductions. The indictment lists the 29 separate returns Wray is charged with fraudulently preparing ranging from calendar tax years 1996 through 2000.
In July 2002, U.S. District Judge John T. Nixon ordered Wray to stop preparing federal income tax returns. In a permanent injunction issued by the court, Judge Nixon found that for a flat fee or a percentage of the refund, Wray would prepare tax returns reporting fictitious expenses or claiming tax deductions that were not allowable under the Internal Revenue Code. At that time Wray was ordered by the court to notify his clients that he could not longer prepare tax returns and to provide the IRS with a list of those clients within 20 days. According to court records, Wray did not appear before Judge Nixon with his client list and therefore an arrest warrant was issued for his failure to appear for a civil contempt hearing. That warrant is still outstanding.
Wray faces a maximum penalty of 87 years in prison and fines of up to $7.25 million if convicted on all counts.
This investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney Robert C. Watson will represent the government.
Charges brought against a person through an indictment are accusations only. That person is presumed innocent until and unless proven guilty.
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