St. Louis, MO resident Eyob Tilahun, formerly the owner of local tax return preparation business Tax King, has been found guilty of conspiring to submit false claims to the United States Government.
Tilahun, 30, owned and operated several Tax King locations in St. Louis, Missouri, and one in East St. Louis, Illinois.
As part of the scheme, Tax King’s return preparers were trained and instructed to increase their customers’ refunds by falsifying certain information on their tax returns, including false Business Income and Schedules Cs, false wages, false education expenses, and false information regarding fuel taxes.
Tilahun profited from the scheme by charging Tax King’s clients fees ranging from approximately $400 to $650, while the return preparers also profited by requesting cash “tips” from the clients that ranged from approximately $100 to $1,000.
Tilahun admitted to the scheme and faces a maximum sentence of 10 years in federal prison, up to a $250,000 fine, and restitution.
The sentencing hearing for Tilahun is set for August 26, 2016, at 10:00 a.m. Four other defendants in the case have previously pled guilty, including Mason B. Richmond, 31, and Lakesha R. Wilson, 28.
Wilson worked as a return preparer at the East St. Louis, IL, Tax King and is scheduled to be sentenced on August 5, 2016. Richmond worked as a return preparer at the Tax King location in St. Louis and is scheduled to be sentenced on August 12, 2016.
Charges are still pending against two additional return preparers from the East St. Louis location, Edric A. Russell, 35, and Pierre J. Carter, 33.
“Tilahun and his business, Tax King, caused money to be stolen from all Americans,” said James L. Porter, Acting United States Attorney for the Southern District of Illinois. “Theft from our citizens, whether done by a gun or a computer, is simply unacceptable.”
The investigation was conducted by agents from the Fairview Heights, Illinois, and St. Louis, Missouri Offices of the Internal Revenue Service – Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Tilahun faces serious charges, including conspiring to submit false claims, with a potential sentence of 10 years in federal prison, up to a $250,000 fine, and restitution.
Taxpayers should be cautious when selecting a tax professional to prepare their returns, as some unscrupulous preparers may file false and fraudulent returns to defraud the government and their clients.
The prosecution of this case is being coordinated with the United States Attorney’s Office for the Eastern District of Missouri.
Defendant: Eyob Tilahun
Criminal Charges: Conspiring to submit false claims to the United States Government
City and State: St. Louis, MO
Exact Date: April 29, 2016
Sentence: Up to 10 years in federal prison, up to a $250,000 fine, and restitution
Dollar Amounts: $400-$650, $100-$1,000
Related Federal Cases
Key Facts
- State: Illinois
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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