A federal grand jury returned an indictment yesterday charging three Las Vegas tax return preparers with conspiracy to defraud the United States and willfully preparing false tax returns for clients.
According to the indictment, Jadee Glover owned and operated CashBack Tax Service, a Las Vegas tax preparation business, where Julia Brainerd and Shamoya Perkins worked as tax return preparers. The three allegedly conspired to prepare and file fraudulent income tax returns for clients that in some instances reported completely fictitious businesses and in other instances reported fictitious receipts and expenses for businesses the clients actually owned. Glover, Brainerd, and Perkins allegedly agreed to include false tax credits on client returns based on false assertions that the clients had missed substantial amounts of work at their purported businesses because they had contracted COVID-19 or were providing care to others that had contracted COVID-19. Based on these false claims, the tax returns allegedly generated large tax refunds that clients were not entitled to receive, a portion of which was directed to CashBack Tax Service as tax preparation fees.
According to the indictment, Glover, Brainerd and Perkins each willfully prepared and filed a number of false tax returns for clients in this manner. In addition to their work for CashBack Tax Service, Brainerd allegedly prepared false returns for clients of Royalty Tax Services, a Las Vegas tax preparation business she separately owned and operated, and Perkins allegedly prepared false returns for clients of Jewels Tax Services, a Las Vegas tax preparation business she separately owned and operated.
If convicted, Glover, Brainerd, and Perkins face a statutory maximum sentence of five years in prison for conspiracy and three years in prison for each count of willfully aiding and assisting in the preparation of false tax returns for clients. They also face a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division and First Assistant U.S. Attorney Sigal Chattah for the District of Nevada made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Regina Jeon and Megan E. Wessel of the Criminal Division’s Tax Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (‘Fraud Division’). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.