July 13, 2004

MEMPHIS MAN PLEADS GUILTY TO TAX FRAUD SCHEMES

Memphis, TN - Terrell L. Harris, U.S. Attorney for the Western District of Tennessee, and Sherree W. Preston, Special Agent in Charge of Internal Revenue Service Criminal Investigation, announced today that Stephen Brown, 43, of Memphis, Tennessee, pled guilty on July 8, 2004 to counts one, three and five of a fourteen count indictment charging him with conspiracy to defraud the United States and filing false claims against the government. According to the indictment, Brown conspired with Tommie Brown, Jr. to defraud the government by filing and causing others to file false 1999 federal income tax returns to obtain fraudulent refunds from the Internal Revenue Service. The 14 false returns claimed approximately $80,946.17 from the government.

During the plea hearing, AUSA Linda Nettles Harris stated the investigation revealed that between March 12, 2000 and May 8, 2000 Steven Brown agreed to participate with Tommie Brown in a scheme designed to help themselves and others obtain payment of false claims from the IRS by filing and causing others to file false income tax returns for the 1999 tax year. Steven and Tommie Brown, Jr. agreed to create and helped to create false W-2s for individuals. The W-2's contained false wages and federal tax withholdings. On some occasions, Steven Brown assisted in submitting the tax returns to H&R Block.

Steven Brown faces maximum penalties of 20 years imprisonment and a fine of up to $750,000 when he is sentenced on October 7, 2004.

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