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Lynchburg-Based Tax Preparer Sentenced for Tax Scheme
A tax preparer from Lynchburg, Virginia, was sentenced to 18 months in federal prison for his role in a tax scheme that involved filing false tax returns to claim fictitious Earned Income Tax Credits.
Jackie G. Woodson Jr., the owner of a Colbert/Ball Tax Service franchise in Lynchburg, was found guilty of conspiracy to commit false claims. His employees, Terry R. Rose and Stella Hester-Jenkins, were also involved in the scheme.
According to evidence presented in court, Woodson, Rose, and Hester-Jenkins prepared and filed tax returns that reported fictitious Schedule C income, resulting in increased Earned Income Tax Credits and refunds. The conspirators often claimed Schedule C income through babysitting or childcare income where none actually existed or exaggerated the amount of income being earned through these activities.
The Internal Revenue Service conducted an investigation into the case, which found that the conspirators had been filing false tax returns for an extended period. The investigation was led by the IRS, with assistance from Assistant United States Attorneys C. Patrick Hogeboom III and Charlene R. Day.
Woodson was sentenced to 18 months in federal prison, while his employees, Rose and Hester-Jenkins, received sentences of 18 months and 3 years’ probation, respectively. The sentences were handed down in the United States District Court for the Western District of Virginia in Lynchburg.
The tax scheme was a brazen attempt to defraud the government and individuals out of millions of dollars. The sentences handed down in this case serve as a reminder that those who engage in such activities will be held accountable.
The case is a stark reminder of the importance of reporting suspicious activity to the authorities. Citizens are urged to remain vigilant and report any suspicious activity to the IRS or other law enforcement agencies.
Key Facts
- State: Virginia
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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