U.S. Department of Justice Alice H. Martin United States Attorney Northern District of Alabama

MADISON COUNTY MAN PLEADS GUILTY TO TAX FRAUD

BIRMINGHAM, AL - United States Attorney Alice H. Martin of the Northern District of Alabama and Special Agent in Charge C. Andre Martin of the Internal Revenue Service - Criminal Investigation Division announce that ALPHONSO FALNEL KEITH pled guilty today to charges of conspiracy and making false claims.

Keith, 30, of Huntsville, Alabama, pled guilty to a seven-count federal indictment on charges of conspiracy to defraud the Federal Government by filing false claims for tax refunds (Title 18, United States Code, Section 286) and individually with making false, fictitious or fraudulent claims for tax refunds (Title 18, United States Code, Section 287).

Keith participated in a scheme to cause false claims for refunds to be filed by providing false wage and withholding information to taxpayers to generate refunds. Taxpayers were recruited and fictitious W-2 Forms were created. The taxpayers were then sent by Keith to have federal income tax returns prepared and instructed to have the returns filed electronically. The taxpayers were also instructed to submit an application for a refund anticipation loan. Once the refund anticipation loan was received, Keith took the taxpayer to a check-cashing business and Keith received a portion of the proceeds. "Using false wage-withholding information to receive tax refunds, no matter how simple or complex the scheme, will not be tolerated by the United States Government," U.S. Attorney Martin stated.

Keith faces a statutory maximum sentence of up to ten (10) years in prison for Count One and a statutory maximum sentence of up to five (5) years for Counts Twenty-three through Twenty-eight. All charges carry a fine of up to $250,000.00. Sentencing is scheduled for August 12, 2003, at 10:30 a.m. before United States District Judge C. Lynwood Smith, Jr.

This case was investigated by Special Agents of the Internal Revenue Service, Criminal Investigation Division. Assistant United States Attorney Angela Redmond Debro is prosecuting the case.
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