Seven individuals have been charged for their alleged role in a scheme that resulted in the request for more than $120 million in fraudulent returns. The Justice Department took the action against individuals who operated nationally in getting returns filed for at least 180 clients from 30 states. More than 380 returns were filed, primarily for tax year 2008, the department alleges.

The indictment alleges the defendants held seminars for recruiting potential clients in Florida and Tennessee. They are accused in preparing returns under the Original Issue Discount scheme. They allegedly charged clients $750 for each return claiming OID income with clients agreeing to pay 10 percent of refunds to the preparers. Jones was previously enjoined by a federal court from preparing tax returns. If convicted, Jones, Beiter, Clum and Peters each face 215 years in prison; Barelc 25 years; Marrero, 30 years; and Smith, 75 years. All are subject to fines and mandatory restitution if convicted.