Related Federal Cases
- Craig J. Schexnaider, Tax Evasion, Texas 2015 · Iowa
- James Pavlounis, Social Security Administration Fraud and Tax Evasion, California 2023 · Texas
- Frank Hamilton, SBA Scam, California 2023 · Texas
- Juan Carlos Mejia, Conspiracy to Transport Aliens for Profit, Texas 2023 · Kansas
- Enrique Acevedo Barocio, Drunk Driving Fatalities, Texas 2024 · Texas
Tax Preparer Banned for Fuel Credit Fraud
A federal judge in Dallas, Texas has permanently barred Lennon Madzima from preparing federal tax returns for others, after a court found him guilty of repeatedly underreporting his customers’ income tax liabilities.
The court found that Madzima negligently and willfully claimed frivolous and meritless federal fuel tax credits that had no realistic possibility of being sustained on the merits, and inflated or fabricated telephone excise tax refund credits. This resulted in over $1 million in false claims for federal fuel tax credits appearing on over 1,100 returns.
The permanent injunction order requires Madzima to provide the Justice Department with a list of his customers’ names, Social Security numbers, addresses, and telephone numbers.
This is not the first time the government has cracked down on tax preparers who claim bogus fuel credits. In the past year, the Justice Department has obtained injunctions shutting down several tax preparers who allegedly claimed false fuel credits.
Lennon Madzima’s actions are considered one of the Dirty Dozen tax scams for 2009, as identified by the IRS.
The Justice Department has obtained injunctions against more than 420 tax preparers and ax-fraud promoters over the past decade.
Acting Assistant Attorney General John DiCicco thanked Justice Department trial attorney Daniel Applegate, who handled the case, as well as Shauna Henline of the IRS’s Small Business/Self Employed Division who investigated it.
Lennon Madzima, a Texas man, has been permanently barred from preparing federal tax returns after underreporting income and claiming false fuel credits. He is required to provide the Justice Department with a list of his customers’ names, Social Security numbers, addresses, and telephone numbers.
Mandatory facts: Defendant: Lennon Madzima; Criminal Charges: Negligently and willfully claimed frivolous and meritless federal fuel tax credits and inflated or fabricated telephone excise tax refund credits; City and State: Dallas, Texas; Date: Not specified; Sentence or Outcome: Permanently barred from preparing federal tax returns; Dollar Amounts: Over $1 million in false claims for federal fuel tax credits.
Key Facts
- State: Federal
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News