Clerge Frazil, of East Cleveland, Ohio, was sentenced to 18 months in prison after he previously pleaded guilty to tax charges related to filing 21 false income tax returns for clients, claiming $124,038 in returns to which they were not entitled, said Steve M. Dettelbach, United States Attorney for the Northern District of Ohio.

Frazil, age 33, was indicted last year on 21 counts of preparing false income tax returns for the years 2007 through 2008 for 19 clients of a tax preparation firm which he owned in Cleveland. Frazil was also charged with two counts of filing a false tax return for the years 2007 and 2008.

He pleaded guilty to all counts.

The indictment alleged that Frazil prepared clients’ returns that included fraudulent credits for federal excise on fuels, fraudulent student loan interest deductions or education credits, incorrect filing status, false or falsely inflated Form A Schedule A deductions, false residential energy efficient property credit, and false Schedule C businesses to maximize the earned income credit. The information alleged that the 21 false returns claimed total refunds, computed using the false tax credits, that were approximately $124,038 more than the total refunds to which the clients were entitled.

The indictment also alleged that Frazil filed false individual income tax returns for his 2007 and 2008 taxes. Frazil filed a false return for the tax year 2007 fraudulently claiming payment credit for withheld income taxes, falsely claiming a tuition and fees deduction for his wife, fraudulently claiming a mortgage interest credit, and failing to report a $9,800 taxable distribution, as documented by Form 1099-R from Hartford Life Insurance. Frazil filed a false return for the tax year 2008 fraudulently claiming payment credit for withheld income taxes, falsely claiming a gas tax credit and a mortgage interest credit, fraudulently claiming a carryover-gifts to charity deduction, and fraudulently omitting a $2,583 taxable distribution, as documented by Form 1099-R from Hartford Life Insurance, as well as income derived from his tax preparation business.

Frazil was arrested by Internal Revenue Service Special Agents on April 13, 2012.

Judge Boyko sentenced Frazil to serve 18 months imprisonment and, upon release, one year of supervised release.

This case was prosecuted by Assistant United States Attorney Ann C. Rowland and Special Assistant United States Attorney Perry D. Mastrocola, following an investigation by the Internal Revenue Service Criminal Investigation Division.

 

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