Towhidul Hussain, Tax Fraud Conspiracy, Ohio 2023

A Middleburg Heights man has been charged with operating a tax fraud conspiracy in which he and others knowingly and willingly prepared and filed dozens of inflated tax returns, sometimes in return for cash kickbacks.

Towhidul Hussain, 36, was charged via criminal information with one count of conspiracy to defraud the United States and three counts related to assisting with the preparation of false tax returns.

According to the charges, Hussain operated a tax-preparation business operating as Liberty Tax at 6410 Harvard Ave. in Cleveland. His business operated through a franchise agreement with Liberty Tax Services, and Hussain had no training or experience in tax return preparation before buying the franchise, the information stated.

Hussain hired a woman identified in the charges as Co-Conspirator 1 to help with daily operation of the business. She showed Hussain how to add false information to tax returns to artificially inflate his clients’ tax refunds, including false medical expenses, false education credits and other false deductions. This took place between 2011 and 2014, according to the information.

Hussain and his co-worker directed some clients to take their tax refund checks to a neighborhood check-cashing store. Once the check was cashed, Hussain and the co-worker received a portion of the refund as payment. In 2012, Hussain received more than $20,000 in kickbacks from clients who received artificially inflated tax returns, according to the information.

This case is being prosecuted by Assistant U.S. Attorney Adam Hollingsworth following an investigation by IRS-Criminal Investigations.

If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.

A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Towhidul Hussain, 36, defendant/respondent: 1 defendant/respondent

Exact criminal charges: Conspiracy to defraud the United States, one count, and three counts related to assisting with the preparation of false tax returns.

City and state: Middleburg Heights, Ohio

Exact date: Not specified

Sentence or outcome: Currently pending

Dollar amounts: $20,000 in kickbacks received by Hussain in 2012.

Source: https://www.justice.gov/usao-ndoh/pr/middleburg-heights-man-charged-tax-fraud-conspiracy