Billy Gene Jefferson, Rehabilitation Tax Credit Scheme, Virginia 2014

RICHMOND, Va. – A Richmond man has been accused of stealing millions from federal and state tax credit programs designed to promote the rehabilitation of historic buildings in the area.

Billy Gene Jefferson, 52, of Richmond, Va., pleaded guilty today for his role in stealing over $12,000,000 from the federal and state tax credit programs.

The defendant, who was the managing member of ‘River City Renaissance, LC’ and ‘River City Renaissance III, LC,’ both real estate development companies, used these entities to apply for millions in state and federal historic tax credits in connection with his rehabilitation of a number of historic properties throughout the Richmond area.

According to a statement of facts filed with the plea agreement, Jefferson submitted false applications to the Virginia Department of Historic Resources (VDHR) and the U.S. Department of the Interior National Park Service (DOI-NPS) for the tax credit approval process.

Jefferson admitted to inflating the Qualified Rehabilitation Expenses (QREs), thereby increasing the tax credits claimed for specific projects. He agreed that if actual amounts had been submitted to federal and state authorities, he would have received less in Virginia and federal tax credits.

Jefferson faces a maximum penalty of 20 years in prison, restitution to the victims, a fine of up to $500,000, and three years of supervised release when he is sentenced on April 8, 2014.

The case was investigated by the Internal Revenue Service Criminal Investigation, the FBI, the United States Postal Inspection Service, and the Virginia State Police.

Jefferson’s companies, ‘River City Renaissance, LC’ and ‘River City Renaissance III, LC,’ also face financial penalties for their role in the scheme.

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