Kinston Woman Sentenced to 37 Months for Tax Fraud

RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge James C. Dever III sentenced ROSALIND JACKSON, of Kinston, NC to 37 months imprisonment, followed by  three years of supervised release.  She was also ordered to pay $393,724 in restitution to the Internal Revenue Service.

On July 10, 2019, JACKSON pled guilty to a two-count Criminal Information, charging her with willfully aiding and assisting in the preparation of false tax returns for others and filing a false income tax return in her name.   JACKSON previously recruited individuals to have fraudulent tax returns prepared by Issac Blount, who operated a tax preparation service in Greenville, known as Enriched Tax Services.  For the tax years 2009 through 2014, Blount filed at least 270 fraudulent income tax returns, seeking $1,746,347 in refunds.  Blount generated these false refunds with fictitious wage and tax statements, enabling the taxpayers to qualify for the Earned Income and Additional Child Care tax credits.  Alicia Jenkins and Kiawanna Langley also worked for Blount.  The taxpayers were expected to pay an additional $1,500 in cash out of the fraudulent refund proceeds, which was split three-ways between Blount, Langley and the recruiter.  In 2016, Blount, Jenkins and Langley pled guilty to tax charges and were sentenced to imprisonment and ordered to pay restitution to the Internal Revenue Service. 

According to the Government’s proffer, after JACKSON disassociated herself from Blount, Jenkins and Langley, she continued to assist others in filing false tax returns in the same fraudulent manner.  She took her clients’ files containing manufactured wage and tax statements to other tax preparation businesses or prepared and filed the returns herself, but falsely represented the returns were self-prepared by the taxpayer.  Thirteen individuals confirmed that JACKSON had filed tax returns for them for multiple years.  Those returns claimed approximately $363,368 in refunds to which the individuals were not entitled.   

In addition, JACKSON filed false income tax returns in her own name for the tax years 2011 through and including 2015, seeking approximately $38,419 in refunds  to which she was not entitled.  Those returns similarly reported false wage income to qualify her for various tax credits. 

United States Attorney Higdon commented, “Whenever anyone defrauds the Government by not filing their tax returns, by claiming refunds or monies to which they are not entitled, or, as here, by scheming with others to do those things, they are victimizing every American who works hard and who diligently pays their taxes to support our Government and the programs and services its provides.  There is no such thing as a victimless tax fraud case; we are all victims when anyone pulls off a scheme like this one.  We are gratified by the Court’s sentence and the message it sends to those who would attempt to defraud the tax system.  You’ll be caught; you’ll be prosecuted; and, you’ll be punished.”

“Return Preparer fraud is a priority for IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like these,” said Matthew D. Line, Special Agent in Charge, IRS Criminal Investigation. “Let this be a reminder to others seeking to enrich themselves illegally; IRS-CI Special Agents will find you and uncover your fraudulent schemes that will lead you to prison.”

The Internal Revenue Service Criminal Investigation conducted the investigation in this matter.  Assistant United States Attorney Susan Menzer represented the government.