MIL-OSI USA: Cotati Resident Sentenced To Prison For Filing False Returns

By   /  March 7, 2019  /  Comments Off on MIL-OSI USA: Cotati Resident Sentenced To Prison For Filing False Returns

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Source: US State of California

SAN FRANCISCO – Stanley Charles was sentenced today to 33 months in prison and ordered to pay $657,888 in restitution for tax fraud, announced United States Attorney David L. Anderson and Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Kareem Carter.  The sentence was handed down by the Honorable Maxine M. Chesney, U.S. District Judge.

Charles, age 33, of Cotati, Calif., pleaded guilty to the charges on July 18, 2018.  According to the plea agreement, Charles admitted that for tax years 2009 through 2015, he prepared and filed 428 false and fraudulent federal income tax returns requesting false deductions and credits on behalf of other taxpayers.  For example, Charles prepared and filed a fraudulent federal income tax return for a husband and wife without their knowledge or permission.  The tax return falsely reported that the couple had $8,000 in qualified higher education expenses.  Along with the false return, Charles filed a document directing the IRS to pay $5,447 of the refund to the couple, and the remaining $1,235 to his own bank account.   In addition, Charles admitted he prepared and filed with the IRS a false 2011 Amended U.S. Individual Income Tax Return regarding his own income.  Charles knew he was entitled to an American Opportunity Credit of no more than $2,500 and nevertheless falsely reported a credit of $9,873.    

On June 18, 2018, Charles was charged by information with one count of tax fraud, in violation of 26 U.S.C. § 7206(2), and one count of filing a false federal income tax return, in violation of 26 U.S.C. § 7206(1).  Charles pleaded guilty to both counts.

In addition to the prison term, Judge Chesney sentenced the defendant to one year of supervised release.  Judge Chesney also ordered the defendant to refrain from aiding or assisting in the preparation of federal income tax returns for anyone other than himself.   Judge Chesney ordered the defendant to begin serving his prison term on May 6, 2019.

Assistant U.S. Attorney Cynthia Stier is prosecuting the case with the assistance of Kathy Tat.  The prosecution is the result of an investigation by the IRS-CI.  
 

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