United States Attorney James T. Jacks
Northern District of Texas

MONDAY, MARCH 21, 2011
http://www.usdoj.gov/usao/txn/

FEDERAL GRAND JURY IN FORT WORTH INDICTS
LOCAL BUSINESSMAN ON TAX CHARGES

Defendant Represented Himself as an Attorney Providing Tax Advice and Services

FORT WORTH, Texas — A federal grand jury in Fort Worth has returned a seven-count indictment charging Phillip Ballard with one count of corrupt interference with internal revenue laws and six counts of aiding and assisting in the preparation and presentation of false and fraudulent individual income tax returns. The announcement was made today by U.S. Attorney James T. Jacks of the Northern District of Texas.

The indictment alleges that Ballard presented himself as an attorney providing tax advice and services for hire in the Dallas-Fort Worth (DFW) area. It further alleges that he prepared, signed and filed on behalf of others, false tax documents and correspondence falsely claiming the client taxpayer was not liable for federal income taxes.

According to the indictment, one of Ballard’s clients was D.B., the owner of a DFW-area drywall business, who, between 1999 and 2004, received more than $4 million in gross receipts from his business. Ballard helped him create a fraudulent trust, church and corporation to hide his income. In addition, in March 2005, Ballard signed and submitted D.B.’s IRS Forms 1040A for tax years 1999-2004; each of these documents reported zero taxable income and included statements falsely asserting that D.B. had no income, when he well knew that D.B. earned substantial income and owed substantial income tax in each of those tax years..

An indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, each of the counts carries a maximum statutory sentence of three years in prison and a $250,000 fine.

The case is being investigated by IRS - Criminal Investigation (IRS-CI). Assistant U.S. Attorney Matthew J. Gulde is in charge of the prosecution.

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