June 5, 2002

LOS ANGELES MAN ADMITS DEFRAUDING I.R.S.

 A Ladera Heights resident has pleaded guilty to defrauding the Internal Revenue Service by filing several dozen fraudulent income tax returns.
 Appearing yesterday afternoon in United States District Court in Los Angeles, Jimmie Lee Lofton, 60, pleaded guilty to two counts of filing false claims with the IRS. As part of his guilty plea, Lofton admitted that he filed 40 false income returns under the names of 12 different people. All of the returns listed Lofton’s home address on Springpark Avenue and claimed refunds of approximately $53,202.
 An investigation by IRS-Criminal Investigation determined that the returns falsely listed self-employment income and the Earned Income Credit. Nine refund checks totaling $10,517 were sent out by the IRS before the scheme was discovered. The rest of the refund checks were stopped at the IRS Service Center before being sent out.
 Lofton pleaded guilty before United States District Judge Audrey B. Collins, who is scheduled to sentence the defendant on September 9. At the time of sentencing, Lofton faces a maximum penalty of 10 years in prison and a $500,000 fine.

 Release No. 02-089

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