Local Tax Return Preparer Sent to Prison for Fraudulent Refund Scheme
HOUSTON – A tax return preparer who operated a local business under the name “Postal Tax Services” has been ordered to federal prison for willfully aiding and assisting in the preparation and presentation of a false U.S. Individual Income Tax Return, announced U.S. Attorney Ryan K. Patrick along with Assistant Special Agent in Charge Ramsey Covington of IRS-Criminal Investigation (CI). Yomi Michael John pleaded guilty May 11, 2017.
Today, U.S. District Gray H. Miller handed John a sentence of 12 months and one day to be immediately followed by one year of supervised release. He was further ordered to pay $212,853 in restitution to the IRS.
“John’s sentencing today will punish him for cheating the government and defrauding his clients and the tax-paying public,” said Covington. “IRS special agents will continue to enforce the nation's tax laws while protecting our tax system from personal greed.”
According to court records, John was in the business of preparing income tax returns and operated that business under “Postal Tax Services” on Veterans Memorial Drive in Houston during calendar years 2010 through 2012. John admitted he willfully added numerous false deductions, credits and business losses to 61 client income tax returns without their knowledge in order to inflate refunds by approximately $214,413. According to the plea agreement, John’s motive was to build and maintain a reputation for getting large refunds to increase his client base, which would generate more fees.
John was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Houston office of IRS – CI conducted the investigation. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.