AUGUSTA, GA: Allen Brown, a 41-year-old man from Richmond County, has been sentenced to 46 months in prison for operating a ‘ghost’ tax preparation business in Augusta, Georgia.
Brown, who pleaded guilty to wire fraud conspiracy, was ordered by U.S. District Court Judge J. Randal Hall to pay $1,003,631 in restitution and to serve three years of supervised release upon completion of his prison term.
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 described in court documents and at sentencing, in 2022 and 2023, Brown and several 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 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 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.
U.S. Attorney Margaret E. Heap said, ‘Tax preparers have a responsibility to accurately prepare tax returns on behalf of their clients. Brown undermined the American tax system and the trust of taxpayers relying on his expertise.’
‘The sentence imposed by the Court reflects the serious nature of Brown’s conduct,’ Heap added. ‘The criminal tax laws are designed to protect the integrity of the nation’s tax system and to obtain and preserve funds needed for public services.’
Related Federal Cases
- Angela Miller and Lee Lynwood, Tax Return Fraud, Georgia, 2008 · Alabama
- June Gibbs-Brown, Healthcare Fraud Enforcement, Washington DC, 1993 · Washington
- June Gibbs Brown, Health Care Fraud Fighter, Washington DC, 2023 · Washington
- Denver Fenton Allen Faces Habeas Corpus Challenge, M.D. Georgia, 2024 · Alabama
- Kimberly Michelle Banks, Identity Theft Tax Fraud Scheme, GA, 2023 · Alabama
Key Facts
- State: Georgia
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News