United States Attorney James T. Jacks
Northern District of Texas

FRIDAY, MARCH 12, 2010
http://www.usdoj.gov/usao/txn/

FEDERAL JURY CONVICTS LOCAL TAX PREPARER -
FACES UP TO 33 YEARS IN FEDERAL PRISON

Defendant Ran Delano Watson Services From
His Residences in Garland and Mesquite, Texas

DALLAS — Following a three-day trial before U.S. District Judge Barbara M.G. Lynn, a federal jury has convicted tax preparer, Delano Watson, on 11 counts of aiding and assisting in the preparation and presentation of a false and fraudulent return, announced U.S. Attorney James T. Jacks of the Northern District of Texas. Watson, who will remain on personal recognizance bond, faces a maximum statutory sentence of three years in prison and a $250,000 fine, per count. A sentencing date has not been set.

“Return preparer fraud affects not only the preparer, but puts at risk individual taxpayers who unwittingly file false information with Internal Revenue Service," said Bridget Marchetta, Acting Special Agent in Charge, IRS-Criminal Investigation-Dallas Field Office. “The verdict should serve as a warning that we will hold accountable abusive tax return preparers who falsely tell taxpayers they are eligible for tax credits to which they are not entitled.”

The government presented evidence at trial that Delano Watson, a resident of Mesquite, Texas, did business as Delano Watson Services and had prepared and filed federal income tax returns for individual taxpayers since 1999, from his residences in Garland and Mesquite, Texas.

The government presented further evidence that Watson submitted false and fraudulent returns representing taxpayers were entitled to claim certain deductions, when he well knew, they were not entitled to claim the deductions. Watson fraudulently inflated taxpayers’ deductions and credits, often without their knowledge, to inflate their tax refunds. Watson did this so that his customers would be happy with their returns and would refer their friends.

Further evidence at trial revealed that many of Watson’s clients were subsequently audited by the IRS and were required to repay what they owed to the IRS, in addition to substantial penalties and interest. Watson continued this scheme over several years, making at least $40,000 - $60,000 per year through his tax preparation business.

The case is being investigated by IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorneys Amy J. Mitchell and Cara Foos Pierce.

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