United States Attorney Leura G. Canary Middle District of Alabama

DOTHAN MAN SENTENCED TO TWO YEARS IN PRISON ON TAX FRAUD CHARGES

MONTGOMERY, ALABAMA— Leura Garrett Canary, United States Attorney for the Middle District of Alabama, announced that on January 18, 2007, Matthew Okonkwo, age 59, a Nigerian national who had been residing in Dothan, Alabama, was sentenced to 24 months in prison on one count of conspiracy to defraud the United States and eleven counts of aiding in the preparation of fraudulent income tax returns. Upon completion of his sentence, Okonkwo will face deportation proceedings.

Okonkwo was convicted by a jury on November 1, 2006. According to the evidence at trial, Okonkwo owned Eagle Financial Services, a tax preparation business in Dothan. Eagle electronically filed 11 tax returns for the tax year 1999 that falsely claimed that the taxpayers had been employed by CJB Ice Cream in Fort Walton Beach, Florida, an entity controlled by Adewunmi. Many of the returns also listed children and foster children that were not the true children of the taxpayers.The false statement qualified the taxpayers for the Earned Income Credit, and as a result refunds were issued that the taxpayers were not entitled to. Okonkwo and Adewunmi did not tell the taxpayers the true amount of the refunds, giving them a small amount in cash. The balance of the refunds was deposited in accounts controlled by Okonkwo and Adewunmi. The IRS issued a total of $45,508 in refunds as a result of this scheme.

The case was investigated by the Internal Revenue Service’s Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Andrew O. Schiff.