FOR IMMEDIATE RELEASE:

April 11, 2001

Norma Estimbo Lacy
Public Affairs Specialist
Phone: 713/567-9388 Fax: 713/718-3389
E-Mail: usatty.txs@usdoj.gov

TAX RETURN PREPARER INDICTED FOR
INCOME TAX REFUND SCHEME

Albert Balboni, Assistant U. S. Attorney
Phone 713/567-9726

(Houston) Mervyn M. Mosbacker, United States Attorney for the Southern District of
Texas, announced today that Charles E. Morgan was indicted by a federal grand jury for aiding in the filing of false income tax returns. Morgan was charged with fifteen counts of aiding and assisting the filing of false income tax returns for the years 1995 and 1996.

The indictment alleges that Morgan prepared fifteen tax returns for eleven taxpayers over a two year period which contained fraudulent deductions designed to obtain a larger refund for his clients. In each instance, Morgan added false and fictitious Schedule A deductions to the taxpayer's return.

If convicted, Morgan faces a possible sentence of three years imprisonment, one year supervised release, and a fine of $250,000. This case was investigated by Special Agents of the Internal Revenue Service and is being prosecuted by the United States Attorney's Office.

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