Two Alabama men, James E. Moss and Avada L. Jenkins, were dealt a harsh blow yesterday as they were sentenced to prison time for their roles in a massive tax conspiracy scheme.
The scheme, which netted the duo over $7 million in fake refunds, involved preparing false tax returns for unsuspecting customers through their tax preparation business, Flash Tax, in Montgomery, Ala.
According to court records, a jury found both Moss and Jenkins guilty of conspiracy and aiding and assisting the preparation of false tax returns on Nov. 2, 2011. The evidence presented at trial showed that the pair worked together to inflate the amount of refunds due to customers, leaving the IRS with a hefty tab.
U.S. District Judge Mark E. Fuller of the Middle District of Alabama handed down the sentences, ordering Moss to serve 160 months in prison and Jenkins to serve 41 months. Both men were also ordered to pay over $120,000 in restitution to the IRS, jointly and severally.
This is not the first time the Flash Tax crew has faced justice. Three other employees, Chiquita Broadnax, Lutoyua Thompson, and Melinda Lambert, have already been sentenced for their roles in the scheme. Broadnax and Thompson each received 18 months in prison, while Lambert was sentenced to 6 months in prison and 6 months home confinement.
The investigation into the tax preparation scam was led by special agents of the IRS – Criminal Investigation, with assistance from the Tax Division Trial Attorneys. Assistant Attorney General Kathryn Keneally praised the efforts of the investigators and prosecutors, saying, ‘Their tireless work has brought justice to the victims of this scheme and sent a strong message to those who would seek to defraud the IRS.’
The case serves as a stark reminder of the importance of tax preparation integrity and the consequences of engaging in tax-related fraud. As the Justice Department continues to crack down on tax-related crimes, one thing is clear: those who would seek to cheat the system will be held accountable.
Additional information about the Tax Division and its enforcement efforts can be found at www.usdoj.gov/tax.
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