Suite 2001
                                                              211 West Fort Street
                                                              Detroit, Michigan 48226-3277
 

For Immediate Release:

Contact: Gina Balaya (313) 226-9758
              Stephen Moore, IRS CI (313) 234-2410

March 1, 2004 
 

    United States Attorney Jeffrey Collins and Mark Kroczynski, Special Agent in
Charge of Internal Revenue Service Criminal Investigation, announced that on March 1, 2004, Leonard Hunter, 57 , of Warren, Michigan, was sentenced to 21 months imprisonment, followed by two years supervised release. On December 1, 2003, Mr. Hunter pleaded guilty to conspiring to defraud the Internal Revenue Service by filing false tax returns. Mr. Hunter's employee, Paul Yeskey, 47, of Harper Woods, was sentenced to two years probation, of which 180 days will be served as home confinement along with a tether. Restitution for both men will be set in the next 30 days by United States Judge George Caram Steeh, based on the actual loss to the government, since the Internal Revenue Service was able to detect Mr. Hunter's scheme and stop some of the fraudulent tax refunds from being issued. Mr. Hunter was also ordered not to prepare and file any taxpayer's tax returns, except his own, while under the court ' s supervision. Both sentences were handed down by United States Judge George Caram Steeh.

According to the indictment, Mr. Hunter was an accountant and tax preparer who owned and operated "Len Hunter Tax Service" in Garden City and Detroit, Michigan. Mr. Hunter employed Mr. Yeskey and trained him to prepare tax returns, including how to create false and fictitious ones. During 1995 through mid - 1998, Mr. Hunter and Mr. Yeskey profiled taxpayers that were unemployed, self employed, or minimally employed, who had dependents and had not filed a tax return for several years. Working with these taxpayers, Mr. Hunter and Mr. Yeskey prepared false and fictitious tax returns, which showed that a tax refund was due. They falsely claimed that the taxpayers were self-employed as babysitters, house cleaners or similar work, and

thereby falsely inflated their income. They also falsely claimed certain tax credits and deductions, creating a false tax refund for the taxpayers. Mr. Hunter submitted these tax returns, listing his accounting service as the return address. Once the false refunds were received, Mr. Hunter assisted the taxpayers in cashing these checks, in some cases receiving half the value of the false refund check as payment for his services. The indictment indicates that over 79 returns were identified as part of this scheme, causing over $130,000 in fraudulent refunds. 

Mr. Kroczynski stated, "Mr. Hunter and Mr. Yeskey profited from the very people who could least afford IRS problems and were financially vulnerable to such a scheme. It's important to remember, what may look good today, as represented by these abusive returns preparers, may cost you dearly down the road. Taxpayers should choose their return preparer wisely, because no matter who prepares your tax return, the taxpayer is ultimately responsible for the content of the return."

Mr. Collins commended the special agents of the Internal Revenue Service Criminal Investigation for their work in this investigation. Assistant United States Attorney Christopher L. Varner is prosecuting the case.