FOR IMMEDIATE RELEASE:
January 4, 2002
Kesha Handy Patrice Warren
P. O. Box 61129 Phone 713/567-9334
Houston, TX 77208 Fax 713/718-3389
Phone: 713/567-9335
Fax: 713/718-3390
E-Mail: usatty.txs@usdoj.gov
RETURN PREPARER SENTENCED
FOR AIDING THE PREPARATION OF FALSE INCOME TAX RETURNS
Al Balboni, Assistant U.S. Attorney
Phone: 713/567-9726
Michael T. Shelby, United States Attorney for the Southern District of Texas, announced today that Charles Morgan, age 58, was sentenced to 18 months in prison and fined $1,000 for aiding the filing of false and fraudulent income tax returns. Morgan had previously pled guilty to 15 counts of filing false returns. He was also sentenced to one-year supervised release and ordered to pay a special assessment of $1,500. During his earlier plea, Morgan admitted he prepared federal income tax returns for tax years 1995 and 1996, including the fifteen income tax returns identified in the 15-count indictment. Morgan further admitted he used false and/or inflated, non-deductible commuting expenses and other false Schedule A and Form 2106 deductions to generate large refunds for his clients. The fifteen returns charged in the indictment each contained false itemized deductions which resulted in a false statement of total itemized deductions on Schedule A of each return. For example, Mr. Morgan admitted he placed a non-existent vehicle deduction of $27,900 on the 1996 return he prepared for Jeffrey and Jennifer Murray which, along with several other false deductions, reduced the Murray's taxable income to zero and resulted in a fraudulent refund of $4,536.00. Morgan also admitted to putting similar false deductions on an additional 87 tax returns. He further admitted he charged his clients 10 % of the refund generated. Mr. Morgan admitted his actions resulted in a tax harm to the government of over $310,000.00.
This case was investigated by Special Agents of the Internal Revenue Service and was prosecuted by the United States Attorney's Office.
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