Tax Crimes Could Send Virginia Man to Prison

 

On July 10, 2012, a Newport News, Virginia, federal grand jury indicted Jeffrey Charles for conspiring with his daughter and son-in-law to defraud the United States, the Justice Department and the IRS announced.
 
Charles is charged with one count of conspiracy, three counts of aiding and assisting in the preparation of false tax returns, and one count of filing a false tax return. The court has not yet set a trial date.
 

Title 18 USC § 371

Conspiracy activities that courts have held defraud the United States under Title 18 USC § 371 - Conspiracy to Defraud the United States - affect the government in at least one of three ways:

  1. They cheat the government out of money or property;
  2. They interfere or obstruct legitimate Government activity; or
  3. They make wrongful use of a governmental instrumentality.

If two or more persons conspire either to commit any offense against the United States, or to defraud the United States, or any agency thereof in any manner or for any purpose, and one or more of such persons do any act to effect the object of the conspiracy, each:

  • Shall be imprisoned not more than 5 years;
  • Or fined not more than $250,000 for individuals ($500,000 for corporations);
  • Or both.

- IRS

According to the indictment, Charles conspired with his daughter and son-in-law to impair and impede the IRS in ascertaining, computing, assessing, and collecting federal income taxes. The indictment also alleges that Charles aided and assisted in the preparation of three false tax returns in his daughter's name for tax years 2000, 2001, and 2005, and attached false documents to each tax return.
 
As alleged in the indictment, Charles also filed a false tax return in his own name for tax year 2006, in which he allegedly falsely reported earning $0.00 income.
 
If convicted, Charles faces a maximum of seventeen years in federal prison and a maximum fine of $1.25 million.
 
Related articles:
 
Source: U.S. Department of Justice

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