FOR IMMEDIATE RELEASE:

October 14, 2004

John Yembrick   
Public Affairs Specialist          
P. O. Box 61129 Houston, TX 77208
Phone: 713/567-9388 Fax: 713/718-3389
E-Mail: usatty.txs@usdoj.gov

TAX ACCOUNTANT TO SERVE 6+ YEARS IN PRISON FOR FILING FALSE TAX REFUND CLAIMS

[HOUSTON, TX] – United States Attorney Michael Shelby announced that Michael Motilal Maharaj, 49, was sentenced to a lengthy prison term and ordered to pay a substantial fine and restitution for his part in a conspiracy to present false claims for income tax refunds. Maharaj, indicted along with three others, was convicted of the offense in June of this year after pleading guilty to the federal offense.

At a sentencing hearing held today before United States District Court Judge David Hittner, Maharaj was sentenced to seventy-eight (78) months imprisonment, without parole, to be followed by three (3) years of supervised release. In addition to the prison term, Judge Hittner ordered Maharaj to pay a $125,000 fine and restitution in the amount of $225,238 to the Internal Revenue Service (IRS). Maharaj is jointly and severally liable with Peter Kolo, Guyitri Ramsook and Martha Tekletsion, his co-defendants, to pay the restitution ordered.

During the re-arraignment hearing held on June 24, 2004, the United States filed the written plea agreement between the parties. As stated in the written plea agreements, between 1999 through 2001, Maharaj, a former certified public accountant, practiced accounting with an emphasis on tax. Maharaj did business in Houston under the company names of Nation’s Accounting and Tax Service, and Nation Tax and Accounting Service. Peter Kolo and Maharaj were business associates, who shared the same office space beginning in 1997 through the end of 2001.

Doing business under the names Nation’s Accounting and Tax Service and Nation Tax and Accounting Service, Maharaj prepared false federal income tax returns in his name and in the names of other people claiming large income tax refunds based on wages and withholding tax amounts reported on false I.R.S. Forms W-2. No withholding tax was paid to the I.R.S. Maharaj prepared fraudulent income tax returns showing that the taxpayer was entitled to a refund of most of his or her withholding tax.

Co-defendants Martha Tekletsion, Peter Kolo and Guyitri Ramsook have also been convicted of conspiracy to present false claims for income tax refunds after admitting their guilt.

Martha Tekletsion also arranged for Maharaj to prepare a false tax return in her name for the tax year 2000. She received a fraudulent tax refund of $75,860. She also used Maharaj to prepare a false tax return in her father’s name for the tax year 2000. The IRS Form W-2 falsely reflected that Tekletsion’s father worked for Tekletsion’s Houston based business, Therapeutic Centers of Texas. She gave her father’s tax refund of approximately $85,019 to Maharaj. Maharaj also prepared a false amended 2000 tax return in the name of Tekletsion’s father fraudulently claiming an additional tax refund in the approximate amount of $39,404. Tekletsion was sentenced by Judge Hittner on October 1, 2004, to fifteen (15) months imprisonment, to be followed by three (3) years of supervised release, and is jointly and severally liable with Maharaj to pay restitution of $165,833.00 to the I.R.S.

Peter Kolo participated in the conspiracy by supplying to Maharaj the names of his Houston business entities, Penndi Group, Inc., Nnalcom, Inc., and Sunrise Mortgage Company LLP, to be used as the purported employers for the false IRS Forms W-2. Kolo filed a false tax return in his own name for the tax year 1998 in which he received a fraudulent tax refund of approximately $26,301. He also filed false tax returns in his own name for the tax years 1999 and 2000 in which he claimed fraudulent tax refunds of approximately $115,195 and $82,332, respectively. Kolo is scheduled to be sentenced on October 21, 2004.

Knowing that the returns prepared would be false, Guyitri Ramsook arranged for Maharaj to prepare a false tax return in her own name for the tax year 2000 claiming a fraudulent tax refund of $16,110. At her request, Maharaj prepared a false tax return for Ramsook in her mother’s name for the tax year 2000 fraudulently claiming a refund of $141,929. This refund was routed to Ramsook’s credit union account. Ramsook withdrew approximately $35,000 to pay off a car loan on a 2000 Mercedes Benz ML 320 purchased in February 2001. Ramsook is scheduled to be sentenced on November 30, 2004.

At their sentencing hearings to be heard by Judge Hittner, Kolo and Ramsook each face a maximum prison term of ten (10) years and a fine of up to $250,000.

This case was investigated by the Internal Revenue Service - Criminal Investigations and prosecuted by Assistant United States Attorney Dave Peck.

041014-Maharaj