An Alabama woman was sentenced to ten years in prison and ordered to pay $1,198,063 in restitution. Rhashema Deramus and those working for her stole people’s identities and used them to file fraudulent tax returns and obtain tax refunds that were not owed to them.
Thomas Nelson, formerly the CEO of York County Community Action Corporation (YCCAC), was sentenced May 21 in US District Court by Judge Nancy Torresen to thirty months in prison and thirty-six months of supervised release for conspiracy, embezzlement from a federally funded program, tax evasion, and signing false tax returns.
A new research report examines auditor involvement in fraudulent financial reporting cases cited in SEC enforcement actions issued from 1998-2010. During the thirteen-year period, there were eighty-seven sanctions against external auditors in SEC fraud investigations involving publicly traded companies.
Masood Chotani, a CPA from Los Angeles, was sentenced April 25 to two years in prison, followed by one year of supervised release, the Justice Department and the IRS announced. Chotani was also ordered to pay $60,705 in restitution to the IRS.
NBA agent LaPoe Smith Jr. of San Antonio is fighting one legal battle after another, though to some extent, the battles are connected. Smith has represented NBA stars that include Antoine Walker, Bo Outlaw, and Penny Hardaway as well as pro athletes from other sports.
A former KPMG LLP senior audit partner faces federal criminal and civil charges for his involvement in a web of deceit that included tipping off a friend about upcoming corporate earnings releases and merger announcements.
The DOJ and SEC recently published a guide that provides insight into the Foreign Corrupt Practices Act and how the agencies carry out their ongoing fight against corruption within companies throughout the world.
Actor and tax protester Wesley Snipes is almost a free man again, at age fifty. He was released from prison April 2, transferred to the New York Community Corrections Office, and will remain on house arrest till July 19.
A federal jury in Montgomery, Alabama, found James Timothy Turner, also known as Tim Turner, guilty of multiple tax crimes. He faces a potential maximum prison term of 164 years, a maximum potential fine of $2,350,000, and mandatory restitution.
In the fight against financial reporting fraud, members of the financial reporting supply chain have a new tool to advance their fraud deterrence and detection capabilities. The Anti-Fraud Collaboration has published the "Hollate Manufacturing Case Study" to raise awareness of environments in which fraud might flourish.
According to a March 13 report from the US Department of Commerce, retail sales increased 1.1 percent in February, to $421.4 billion, marking the biggest surge in the retail space since last September. Elevated sales numbers mean additional credit card transactions and, as a result, an increased risk for fraud.
In a March 18 e-mail, the IRS warned tax preparation professionals that the security of taxpayer accounts and personal information should be a top priority, as referenced in Revenue Procedure 2007-40, which outlines the obligations of IRS e-file providers.
The latest Kroll "Global Fraud Report" shows the incidence and cost of fraud have decreased over the last year, yet fraud still remains an important issue for all companies around the world. And a DOJ suit against Standard & Poor's highlights the need for oversight of the credit rating industry.
A federal court has permanently barred Crystal Ireland of Detroit, who does business as Master Mind Preparation, from preparing federal tax returns that claim the earned income tax credit. According to the complaint, Ireland fabricated businesses and reported fake business income on her customers' tax returns in order to claim the maximum credit for them.
On March 8, the IRS announced that its Office of Professional Responsibility obtained the disbarment of enrolled agent Lorna M. Walker for stealing a client's tax payments and for preparing tax returns with false deductions for multiple clients.
Appearing before US District Judge Margaret M. Morrow, a Los Angeles woman was sentenced February 25 to three years in prison for her role in a scheme whereby she used the identities of others to defraud the federal bankruptcy and tax systems.
Hedge fund manager and CPA administrator Jonathan Davey was convicted by a jury in Charlotte, North Carolina, on February 8 for a $40 million Ponzi scheme. Ten other defendants were also convicted in the case.
A tax return preparer in Florida allegedly falsified tax returns that cost the US Treasury more than $17 million. After examining over 250 tax returns, the IRS found that over 90 percent understated the taxpayer's liability.
Underscoring the importance of performing extensive due diligence before investing in the world's second largest economy, construction equipment giant Caterpillar got burned to the tune of $580 million.
Masood Chotani, a CPA and tax return preparer, was indicted by a federal grand jury on charges of engaging in a scheme to file false tax returns with the IRS using the names and Social Security numbers of deceased individuals.