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North Carolina Tax Preparers Plead Guilty to $5 Million Tax Conspiracy
Two North Carolina women, Betty Hawkins, 51, and Phyllis Ricks, 63, both of Rocky Mount, North Carolina, have pleaded guilty to conspiring to defraud the United States by preparing false tax returns for clients and causing them to be filed with the IRS.
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 of the tax preparation businesses where they both worked. These returns included fictitious federal income tax withholding figures as well as other fraudulent items that generated fraudulent refunds the clients were not entitled to receive.
The women caused more than 1,000 false tax returns to be filed with the IRS that claimed a total of approximately $5 million in fraudulent refunds. They are scheduled to be sentenced on December 16.
Hawkins and Ricks 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.
The case is being investigated by the IRS-Criminal Investigation. The Tax Division’s Trial Attorneys Michael Jones and Mary Frances Richardson, and Assistant U.S. Attorney Susan Menzer are prosecuting the case.
Hawkins and Ricks’ guilty pleas mark a significant blow to those who would seek to cheat the system and deprive the government of revenue. Their actions not only harmed the IRS and the U.S. Treasury, but also undermined the trust that taxpayers have in our tax system.
Defendant: Betty Hawkins and Phyllis Ricks
Criminal Charges: Conspiring to defraud the United States by preparing false tax returns
City and State: Rocky Mount, North Carolina
Date: Approximately 2009 through 2018
Sentence or Outcome: Scheduled to be sentenced on December 16, 2023
Dollar Amounts: Approximately $5 million in fraudulent refunds
Key Facts
- State: North Carolina
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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