Augusta “Ghost Preparer” Pleads Guilty to Wire Fraud Conspiracy

AUGUSTA, GA: A man who operated a “ghost” tax preparation business in Augusta, Georgia awaits sentencing after pleading guilty to conspiracy to commit wire fraud.

Allen Brown, 41, of Augusta, Georgia, pled guilty to wire fraud conspiracy, said Tara M. Lyons, Acting U.S. Attorney for the Southern District of Georgia. Brown now faces a possible sentence of up to 20 years’ imprisonment, a period of supervised release, restitution, and monetary penalties. 

As described in the plea agreement, in 2022 and 2023, Brown and several other individuals operated a “ghost” tax preparation business at 1850 Gordon Highway, Suite C, Augusta, Georgia, and at two other Augusta locations including a church and Brown’s residence.  Brown operated as a “ghost” preparer because, contrary to IRS requirements he failed to identify himself as a paid preparer on the federal income tax returns that he prepared and filed for his clients. As a “ghost” preparer, Brown fabricated income to qualify his clients for tax credits, claimed fake deductions to boost the size of the refund, and charged clients a fee based on a percentage of the tax refund. Brown did not provide his clients with a copy of the tax returns he prepared, nor did he review the returns with clients before electronically filing them with the IRS.  Brown and other “ghost” preparers who worked with him falsified 63 federal income tax returns for clients, causing the U.S. Department of Treasury to issue $1,003,631 in false tax refunds.  The tax fraud scheme Brown executed entailed offering clients two filing options, the “Standard” option or the “I’m Not Scared” option.  The “Standard” option generally resulted in a fraudulent tax refund of $2,000 - $9,000.  The “I’m Not Scared” option resulted in a fraudulent tax refund of $14,000 - $30,000.  For the “I’m Not Scared” option, Brown instructed his “ghost” preparers to falsely claim Fuel Tax Credits and falsely report gross income and other expenses on Schedule C and medical and dental expenses on Schedule A with the tax returns.  For the “Standard” option, Brown instructed “ghost” preparers to falsely claim Sick and Family Leave Credits and other false items.  Brown required his clients to pay him a ten-percent fee of each refund obtained.     

This case is being investigated by the Internal Revenue Service, Criminal Investigation, and prosecuted by Assistant U.S. Attorney George J.C. Jacobs, III.