Two tax preparers who filed phony returns for prison inmates have drawn multi-year sentences. The sentences were handed down in a federal court in New Jersey following a one-week trial in which two, who operated Release Refunds, were convicted of with one count of conspiracy, 16 counts of making false claims and three counts of mail fraud. The two also were ordered to pay restitution of $570,897 and serve three years of supervised release.
The two operated their former business between October 2011 and October 2013 in Brick, N. J., and Seaford. According to testimony, they solicited current and former New Jersey prison inmates as clients and then filed fraudulent tax returns on their behalf.
James and Hawkins sent Release Refunds flyers to inmates at New Jersey prisons and halfway houses offering services. They asked the inmates to provide basic identification information and sign returns, but not provide any information about income or withholdings. They filled in the information in order to claim inflated refunds.