Two Women Plead Guilty To Filing False Federal Income Tax Returns
Gemarian Douglas, 38, of Alorton, Illinois, and Anayd Bluiett, 26, of St. Louis, Missouri, each pled guilty in federal court to the offenses of Filing False Federal Income Tax Returns, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The offenses each carry a maximum possible penalty of up to three years in prison. Sentencing is scheduled for July 18, 2013.
Anayd Bluiett admitted as part of the plea that she had false and fraudulent 2008, 2009 and 2010 federal income tax returns prepared by Prime Time Tax Services. Gemarian Douglas admitted that she had filed a false and fraudulent 2009 federal income tax return. Delaun Leflore and Carey Herron owned and operated Prime Time Tax Services (PTTS) located in Shiloh, Illinois. During the 2008-2011 filing seasons, Leflore and Herron used electronic software to prepare and file tax returns and they typically applied for refund anticipation loans. Leflore and Herron conspired together and with their clients to prepare false tax returns and claim fraudulent tax refunds. To accomplish this scheme, Leflore and Herron created false and fraudulent Schedule C income and expenses. The purpose of creating the false income was to maximize the earned income credit and other credits which generated large tax refunds. While meeting with their clients, Leflore and Herron discussed how to receive more money back by creating self-employment income. The clients agreed to participate in the scheme in order to receive a larger tax refund. Typically, the clients were referred to Leflore and Herron and visited the tax preparation business knowing they would file fraudulent tax returns. As part of the scheme, the clients were required to pay an extra cash fee to Leflore or Herron from the tax refund received. This amount was generally $500 in cash. This amount was in addition to the tax preparation fee which was automatically deducted from the tax refund by the bank processing the refund anticipation loan (RAL). Following the receipt of the RAL check, Leflore, Herron, or another representative of PTTS escorted the clients to a local check-cashing business, Belleville Quick Stop, located in Belleville, Illinois. After the client cashed the RAL check, the client immediately gave the $500 in cash to Leflore, Herron, or another representative of Prime Time. Leflore and Herron have already been prosecuted and are serving their prison sentences.
The Indictment is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations. The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith.
To report criminal tax fraud, call IRS Criminal Investigations at (618) 622-2160, or send the information to the Internal Revenue Service, Fresno, CA 93888.