CONTACT: Gina Balaya (313) 226-9758

                      Stephen Moore, IRS CI (313) 628-3307
 

FOR IMMEDIATE RELEASE:
 

Jeffrey Collins, United States Attorney, and Mark Kroczynski, Special Agent in Charge of Internal Revenue Service Criminal Investigation, announced that on May 6, 2003, Leonard Hunter, 56, of Warren, Michigan, and Paul Yeskey, 46, of Harper Woods, were indicted with one count of conspiring to defraud the Internal Revenue Service, and 24 counts of aiding and abetting others in the making of false and fictitious claims against the Internal Revenue Service.

Mr. Collins stated, "According to the indictment, Mr. Hunter was an accountant and tax preparer who owned and operated "Len Hunter Tax Service" in Garden City and Detroit, Michigan. Mr. Hunter employed Mr. Yeskey and trained him to prepare tax returns, including how to create false and fictitious ones. During 1995 through mid 1998, Mr. Hunter and Mr. Yeskey profiled taxpayers that were unemployed, self employed, or minimally employed, who had dependents and had not filed a tax return for several years. Working with these taxpayers, Mr. Hunter and Mr. Yeskey would prepare false and fictitious tax returns, which would show that a tax refund was due. They would falsely claim that the taxpayers were self-employed as babysitters, house cleaners or similar work, and thereby falsely inflating their income. They would also falsely claim certain tax credits and deductions, creating a false tax refund for the taxpayers. Mr. Hunter would submit these tax returns, listing his accounting service as the return address. Once the false refunds were received, Mr. Hunter would assist the taxpayers in cashing these checks, in some cases receiving half the value of the false refund check as payment for his services. The indictment indicates that over 79 return were identified as part of this scheme, causing over $130,000 in fraudulent refunds." 

Mr. Collins stated, "Conspiring to defraud the Internal Revenue Service by making a false claim for a tax refund is in violation of Title 18, United States Code, Section 286. A count of conviction carries a maximum penalty of ten years imprisonment and a $250,000 fine. Aiding and abetting others in the making of false and fictitious claims against the Internal Revenue Service is in violation of Title 18, United States Code, Section 287. Each count of conviction carries a maximum penalty of five years imprisonment and a $250,000 fine.

An indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.

Mr. Collins commended the special agents of the Internal Revenue Service Criminal Investigation for their work in this investigation. Assistant United States Attorney Christopher L. Varner is prosecuting the case.