Hatton Tax Scam: $126K Loss to IRS

HOUSTON – Christopher Hatton, a local resident, admitted guilt today to a calculated scheme to defraud the United States government. The man pleaded guilty to filing a false joint 2015 tax return, falsely claiming a refund exceeding $15,000. The announcement came from U.S. Attorney Ryan K. Patrick, alongside Acting Special Agent in Charge Sarah Kull of IRS-Criminal Investigation (CI).

The details, laid bare in the plea agreement, paint a picture of brazen deception. Hatton didn’t just tweak the numbers; he massively inflated both the amount of federal income tax withholdings and unreimbursed employee expenses on his 2015 return – by over $38,000 each. This wasn’t an oversight; it was a deliberate attempt to line his pockets at the expense of American taxpayers.

The result? A false claim for an income tax refund of more than $15,000. The reality was far grimmer. Hatton actually owed the IRS more than $18,000 in income taxes for the year. When the IRS came calling with an audit, Hatton doubled down on the lies, presenting altered form W-2s and doctored bank statements in a pathetic attempt to validate his fraudulent claims.

This wasn’t a one-time offense. The plea agreement reveals a pattern of deceit, with Hatton filing false returns for 2012, 2013, 2014, and 2016, each riddled with fabricated deductions and expenses. The cumulative damage? The total tax loss caused by Hatton’s actions exceeds a staggering $126,000.

U.S. District Judge Nancy Atlas accepted Hatton’s guilty plea, scheduling sentencing for July 17, 2019. He now faces a potential three-year stretch in federal prison and a hefty fine of up to $250,000. For now, he’s been allowed to remain on bond, a temporary reprieve before facing the consequences of his actions.

The investigation was spearheaded by IRS-Criminal Investigation (CI). Assistant U.S. Attorney Charles J. Escher is handling the prosecution, ensuring Hatton is held accountable for his blatant disregard for the law and his theft from the American people. This case serves as a stark reminder that tax fraud is a serious crime with serious consequences.