Karen Marie Jones, Tax Evasion Scheme, North Carolina 2017

GREENSBORO, NC – A federal grand jury has indicted two North Carolina tax preparers, accusing them of a five-year scheme to defraud the United States government and bilk the IRS out of untold thousands. Karen Marie Jones, owner of Jones and Stone Taxes in Durham, and Audrey Renatta Odom are facing serious charges after allegedly fabricating education expenses on client returns to artificially inflate refunds.

According to the indictment unsealed today, the pair allegedly conspired from 2012 through 2017 to pad returns with bogus educational credits. Clients, many unaware they were part of an illegal operation, were reportedly charged up to $3,000 for the preparation of these fraudulent tax filings. The scheme targeted the IRS, funneling illegally obtained refunds directly into the pockets of Jones, Odom, and potentially others involved.

Richard E. Zuckerman, Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division, and Matthew G.T. Martin, U.S. Attorney for the Middle District of North Carolina, jointly announced the indictment. The feds are painting a picture of calculated deceit, suggesting the operation wasn’t a few isolated errors, but a systematic effort to cheat the system.

If convicted, both Jones and Odom face a maximum sentence of five years in federal prison on the conspiracy charge. They also each face up to three years behind bars for each count of aiding and assisting in the preparation of a false tax return. Beyond prison time, the indictment indicates the possibility of supervised release, restitution to the government, and hefty monetary penalties.

IRS-Criminal Investigation agents spearheaded the investigation, meticulously untangling the web of false returns. Todd Ellinwood, Assistant Chief, and Kavitha Bondada, Trial Attorney, from the Tax Division are prosecuting the case, meaning the government is prepared to aggressively pursue a conviction. This isn’t a slap on the wrist case; the feds are sending a message that tax fraud won’t be tolerated.

It’s crucial to remember that an indictment is not a finding of guilt. Jones and Odom are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. However, the evidence presented to the grand jury clearly convinced them there’s enough reason to move forward with a full-blown criminal trial. More details on the Tax Division’s efforts can be found on their website. This is a developing story, and Grimy Times will continue to follow it closely.

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