Frazier B. Todd, Jr., 58, of Atlanta, Georgia, has been convicted on multiple counts of fraud after running a brazen tax scam out of his Union City storefront, Diverse Resource Business and Tax Firm. A federal jury handed down a guilty verdict following a three-day trial, marking the fall of a man who exploited the most vulnerable to line his own pockets.
Todd, along with co-conspirators Cozzie Walker, 42, and Roberta Sheffield, 43—both of Atlanta—built a criminal enterprise disguised as a tax preparation service. Prosecutors revealed he targeted disabled, elderly, and low-income clients, peddling false promises of easy refunds through the American Opportunity Tax Credit (AOTC). He marketed the credit as a “stimulus” available to nearly anyone, regardless of eligibility, and filed thousands of fraudulent returns to cash in.
The fraud didn’t stop at student credits. Todd expanded his grift by filing dozens of phony corporate tax returns, falsely claiming businesses had purchased tens of thousands of gallons of fuel for “off-highway business use” to steal the Fuel Tax Credit. He also fabricated solar panel installations across homes to falsely claim the Residential Energy Credit—tax breaks meant for green energy investments, not criminal profit.
The jury convicted Todd on ten counts of presenting false claims for refund to the IRS, conspiracy to commit mail and wire fraud, and obstructing the internal revenue laws. The government dropped two additional false claims counts before trial. Walker pleaded guilty on March 2, 2016, to conspiracy; Sheffield followed on March 21, 2016, admitting to the same conspiracy and 14 counts of filing false refund claims.
“Mr. Todd and his co-conspirators compromised the integrity of our tax system,” said U.S. Attorney John Horn. “As we approach tax season, the public is cautioned to do their homework and choose their return preparers wisely.” IRS Criminal Investigation’s Special Agent in Charge, Veronica F. Hyman-Pillot, added the verdict sends a clear warning: “There are consequences for committing refund fraud.”
Todd’s sentencing is set for March 8, 2017, before U.S. District Court Judge Mark H. Cohen. Walker and Sheffield are scheduled to be sentenced February 23, 2017, in the same court. The case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorneys Lynsey M. Barron and Steven D. Grimberg. For more, contact USAGAN.PressEmails@usdoj.gov or (404) 581-6016.
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Key Facts
- State: Georgia
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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