Three Florida Men Plead Guilty to Multi-Million Dollar Tax Fraud Scheme
According to due, Three men from Florida have admitted to their involvement in an elaborate tax-refund scheme designed to defraud the IRS.
Christopher Johnson and Jasen Harvey pleaded guilty to conspiracy to defraud the United States, following the earlier guilty plea of Arthur Grimes on April 2 for obstructing the IRS in connection with the same scheme.
The guilty pleas were announced by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida.
According to the Justice Department, the scheme spanned three years, from 2015 to 2018. During this time, Harvey and Johnson prepared tax returns for clients that falsely claimed large income tax withholdings had been paid to the IRS, seeking substantial refunds based on these fictitious withholdings. The conspirators charged clients fees and demanded a portion of the fraudulently obtained refunds.
Grimes, who pleaded guilty to his role in the scheme, was involved in filing four false tax returns prepared by Harvey. When the IRS attempted to recover a refund that had been falsely allocated to Grimes, he provided false statements and information to the IRS. Additionally, Grimes funneled the refunded money into a designated bank account.
Johnson also submitted false information to the IRS for the tax years 2016 and 2017, failing to report income for both years. According to the report, he received $200,000 in 2016 and over $100,000 in 2017 as his share of the scheme’s proceeds. Johnson filed false tax returns for those years, resulting in a tax loss of $78,259.
Johnson and Harvey each face a maximum penalty of five years in prison, although their sentencing dates have not yet been determined. Grimes is scheduled to be sentenced on November 12, 2024, and could face up to three years in prison for the tax obstruction charge.
