Betty Hawkins and Phyllis Ricks, $5 Million Tax Conspiracy, North Carolina 2022

In a shocking turn of events, two North Carolina tax preparers have pleaded guilty to their involvement in a massive $5 million tax conspiracy. The scheme, which spanned nearly a decade, saw Betty Hawkins, 51, and Phyllis Ricks, 63, both of Rocky Mount, North Carolina, conspiring with others to file false tax returns for clients of the tax preparation businesses where they both worked.

According to court documents and statements made in court, from approximately 2009 through 2018, Hawkins and Ricks conspired with others to file false tax returns for clients that included fictitious federal income tax withholding figures as well as other fraudulent items that generated fraudulent refunds the clients were not entitled to receive. In total, the pair caused more than 1,000 false tax returns to be filed with the IRS, claiming a total of approximately $5 million in fraudulent refunds.

Hawkins and Ricks are scheduled to be sentenced on December 16, 2022. Both women face a maximum penalty of five years in prison for conspiring to defraud the United States. They also face a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg and U.S. Attorney Michael F. Easley for the Eastern District of North Carolina made the announcement. IRS-Criminal Investigation is investigating the case. Trial Attorneys Michael Jones and Mary Frances Richardson of the Tax Division and Assistant U.S. Attorney Susan Menzer are prosecuting the case.

The case against Hawkins and Ricks is a stark reminder of the importance of tax integrity and the severe penalties that can be imposed on those who engage in tax-related crimes. The U.S. government takes tax evasion and tax conspiracy very seriously and will continue to aggressively pursue those who attempt to cheat the system.

As the investigation and prosecution of Hawkins and Ricks continue, it is essential to remember that tax-related crimes can have severe consequences for individuals, businesses, and the economy as a whole. The U.S. government urges taxpayers to report any suspicious activity or tax-related crimes to the authorities.

In a statement, U.S. Attorney Michael F. Easley said, ‘The guilty pleas of Hawkins and Ricks demonstrate the importance of tax integrity and the severe penalties that can be imposed on those who engage in tax-related crimes.’

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