Sumrall Man Sentenced for Tax Fraud

Gulfport, Miss. –  Charles Chandler Smith, 43, of Sumrall, Mississippi, was sentenced today by U.S. District Judge Keith Starrett to five years’ probation for filing a false tax return,  announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge James E. Dorsey of the Internal Revenue Service Criminal Investigation, Atlanta Field Office.  Smith was also ordered to pay a $494,444 in restitution. 

Smith pled guilty before Judge Starrett on December 14, 2020.  According to the facts revealed at this plea hearing, Smith took advantage of a tax deduction strategy suggested by a financial adviser to deduct money on his tax return and thereby reduce his taxable income.  Smith admitted to transferring a total of $1,305,090 from an account held by his business, Lil Mad, to another company and falsely claiming it as a business expense deduction on his 2014 tax return.  Smith falsely claimed that his income with Lil Mad was only $143,070.  Smith admitted to knowing this act was unlawful or deliberately blinded himself to suspicious aspects of the deduction, particularly the fact that the money was soon transferred back to an account that was available to Smith for his personal use.

The case was investigated by IRS Criminal Investigation and the FBI.  It was prosecuted by DOJ Health Care Fraud Trial Attorney Sara Porter and Assistant U.S. Attorney Kathlyn R. Van Buskirk.