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Delray Beach Tax Scam Exposed
Three Delray Beach tax return preparers have been caught in a massive tax scam, pleading guilty to filing false federal income tax returns with the Internal Revenue Service (IRS). The scam, uncovered by the U.S. Attorney’s Office for the Southern District of Florida, was masterminded by Devonne A. Herrington, 64, her son Lorenzo Wright, 49, and co-defendant Joyce Walker, 61.
Herrington, Wright, and Walker operated a tax preparation business in Delray Beach, Florida, known as Devonne’s LLC and later as Wright’s & Family LLC. The trio would meet with clients in person, conduct a cursory interview, and collect required tax forms. However, despite clients not qualifying for certain tax credits or income deductions, the defendants would falsely claim them on the clients’ tax returns.
The false tax credits and deductions included credits for first-time home purchasers and education expenses, as well as deductions for business expenses and being the head of household. The defendants would charge their clients extra fees for these fraudulent schedules and often failed to review the returns with clients before filing them with the IRS.
Many of the clients who received these false tax refunds have since been audited by the IRS and are now required to pay back the refunds they received. Herrington also failed to file her personal income tax returns for calendar years 2010 and 2011, while Walker filed her personal tax returns containing false claims for the Education Expense Credit for those same years.
U.S. Attorney Wifredo A. Ferrer commended the investigative efforts of the IRS-CI, which was responsible for uncovering the scam. Assistant U.S. Attorney Ellen L. Cohen is prosecuting the case. Walker is scheduled to be sentenced on January 27, 2017, while Herrington and Wright are set to be sentenced on February 17, 2017, both before United States District Judge Robin L. Rosenberg.
The defendants face significant prison time, with up to five years for the conspiracy charge and up to three years for filing false tax returns. Herrington also faces up to one year in prison for failing to file her personal tax returns. The case serves as a reminder of the importance of being vigilant when dealing with tax preparation services and the severe consequences of filing false tax returns.
Related court documents and information can be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Key Facts
- State: Florida
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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