Nakita Brooks, Tax Fraud, Tennessee 2014

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Memphis Women Sentenced for Tax Fraud Scheme

Nakita Brooks, 31, and Cheryl Wright, 30, both of Memphis, pleaded guilty to conspiracy to defraud the government through the filing of false income tax returns, announced U.S. Attorney Edward L. Stanton III.

According to the facts presented in the indictment and revealed during sentencing hearings, Brooks and Wright filed hundreds of false returns using the personal identifying information of deceased individuals, including social security numbers, beginning as early as February 2010 through at least November 2011.

Not only did they file false returns, but Brooks and Wright also set up tax return services using stolen identities as the preparers of the returns. In 2010, the name of the company used to prepare the returns was Rattler’s Tax Pals. In 2011, the name of the company used to prepare the returns was Taxes Express. Three individuals, including a nine-year-old girl from Indiana, had their tax information fraudulently listed as the preparers for these companies.

At least $462,619.31 was deposited into accounts under the control of Brooks and Wright. The total loss is estimated to be $1 million to $2.5 million. The conspiracy count carries a penalty of up to 10 years in prison and a fine of up to $250,000.

Brooks will be sentenced on July 11, 2014, and Wright will be sentenced on July 24, 2014. Both will appear before U.S. District Judge John T. Fowlkes, Jr.

This case was investigated by IRS-Criminal Investigations. Assistant U.S. Attorney David Pritchard represented the government.

The guilty pleas bring an end to a scheme that preyed on the vulnerable and exploited the trust placed in tax preparation services. The Grimy Times will continue to follow this story and provide updates as more information becomes available.