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Contact Retta
Goss
Press Officer Beeper 877/443-0028 |
February 9, 2004 |
Leura Garrett Canary, United States
Attorney for the Middle District of Alabama, announced today that Erma Weaver
Lawrence, also known as Erma Woods, age 49, of Tuskegee, Alabama, pled guilty
in United States District Court to three felony charges and one misdemeanor
charge relating to her preparation of false tax returns, forgery of two
rapid refund checks, and misuse of a tax client's social security number
to apply for a credit card. Title 26, United States Code, Section 7206(2)
makes it unlawful for anyone to willfully aid and assist in the preparation
of a tax return that is false in any material respect. Title 18, United
States Code, Section 513, forbids the creation or passing of forged checks.
Title 26, United States Code, Section 7216(a)(2), makes it a crime for a
tax preparer to misuse any of the private information she receives from
her tax clients.
In her plea agreement, Ms. Lawrence admitted that she knowingly and willfully
prepared 16 fraudulent returns for clients of her tax business, Qwik Tax.
Specifically, Ms. Lawrence admitted to preparing returns claiming false
dependents, bogus deductions, nonexistent income, and incorrect taxpayer
statuses. The tax loss caused by her conduct was $42,289.00. Ms. Lawrence
also admitted in her plea agreement that she forged two checks from the
Santa Barbara Bank & Trust, and that she misused a client's social security
number to apply for an American Express credit card.
A sentencing date will be set at a later time. Ms. Lawrence faces a maximum
possible sentence of ten years imprisonment and a fine of not more than
$250,000.
Ms. Canary stated: "This prosecution should make any tax preparer think
twice before filing a false return with the Internal Revenue Service this
tax season. Today's guilty plea should also put tax preparer's on notice,
if they misuse their clients' social security numbers or private information,
they will be federally prosecuted."
The case against Ms. Lawrence was investigated and successfully resolved
thanks to the dedicated work of agents from the Internal Revenue Service,
Criminal Investigations Division, and the Department of Treasury Inspector
General for Tax Administration. The case was prosecuted by Assistant United
States Attorney Matthew S. Miner.