Piedmont Regional Jail Supervisor Indicted For A False Tax Return Conspiracy With His Wife

RICHMOND, Va. – William A. Coles, Jr., 49, of Pamplin, Va., was indicted by a federal grand jury yesterday on seven counts involving the preparation and filing of false tax returns and bank fraud.  The indictment includes one count of conspiracy, five counts of assisting in the preparation and filing of a false tax return, and one count of bank fraud.  Coles faces a maximum penalty of 48 years of incarceration, if convicted.

               Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; and Mark R. Herring, Attorney General of Virginia, made the announcement. 

               The indictment alleges that William Coles and his wife Sybil Coles, who was charged in a related case and pleaded guilty on January 28, 2014, engaged in a false tax return conspiracy.  It is alleged that William Coles recruited individuals from the Piedmont Regional Jail, where he worked as a supervisor, to pay Sybil Coles to prepare and file tax returns that falsely claimed business losses, childcare expenses, job expenses, and charitable donations, among other things, creating a larger refund in an attempt to attract more customers.  In addition, the indictment alleges that William Coles assisted in the preparation of his own false tax returns.  It also alleges that William Coles devised a scheme to defraud a financial institution by submitting falsified W-2 and wage documents to obtain a mortgage loan.  A trial date has not been set by the Court.

               Criminal indictments are only charges and not evidence of guilt.  A defendant is presumed to be innocent until and unless proven guilty. 

            The case is being prosecuted by Department of Justice, Tax Division Trial Attorney and Special Assistant United States Attorney, Rebecca Perlmutter, and Assistant Attorney General and Special Assistant United States Attorney Michael Jagels.  IRS-Criminal Investigation in Richmond, Virginia investigated the case.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.