COLUMBUS, Ohio – As millions of American mailed in their 2013 income tax returns, federal grand juries were at work, preparing tax-fraud indictments against a dozen people from central Ohio who allegedly took part in two different schemes.
Eight people were indicted Thursday on one count each of conspiring to defraud the Internal Revenue Service by willfully filing false claims for income tax refunds.
Javon Brown, 44; Nikkia Jackson, 36; Tyrone Palmer, 34; Debra Taylor, 59; Keyland Whitby, 25, and Tyrone Woody, 27, all of Columbus; Kenneth McDonald, 26, of Reynoldsburg, and Kimberly Wallace, 51, of Dennison are accused of recruiting others to create false W-2 forms and file fake tax returns, claiming refunds they were not entitled to, according to Special Agent in Charge Kathy Enstrom of the IRS Criminal Investigation Field Office in Cincinnati.
The indictment Thursday morning came a day after a Columbus-based tax preparer and four other Columbus residents were indicted for conspiracy to defraud the IRS and helping to prepare and file false tax returns.
The eight people charged on Thursday are accused of creating false W-2 forms, using the names and social security numbers of other people, but listing employers those people never worked for and fabricating withholding amounts, Enstrom said.
Conspiracy to file false claims with for income tax refunds with the IRS carries a maximum penalty of 10 years in prison and a fine of up to $250,000.
Enstrom says the tax preparer who was indicted on Wednesday, Fatma Ali, created false tax documents between 2008 and 2012 while the other defendants underreported their income, enabling them to receive tax credits for which they weren’t actually eligible.
Ali, 39, was charged with two counts of conspiracy and 48 counts of aiding and assisting in the preparation and filing of false federal income tax returns with the IRS. The indictment claims Ali was employed as an income tax preparer for Speedia Tax Services.
The others charged with Ali:
Abdi Hared, 43: One count of conspiracy to defraud the IRS and 40 counts helping in the preparation and filing of false returns.
Tolomyne Sargbah, 65: One count of conspiracy and 40 counts of helping prepare and file false tax returns.
Mursal Dhudhi, 40: One count of conspiracy, 40 counts of helping prepare and file of false returns.
Abdiwali Muse, 39: One count of conspiracy and eight of helping prepare and file false returns
According to the indictment, Hared, Sargbah, and Dhudhi were co-owners of Better Home Care Services, Inc. and Muse owned Health Empowerment Partners, LLC.
Between 2008 and 2012, the suspects allegedly used false 1099 forms to underreport income, falsely claimed deductions and Ali prepared income tax returns for employees of the two companies who never received income, claimed the income as his own and helped the others claim the fictitious income as business expenses, Enstrom said.
A message was left late Wednesday for Ali’s attorney.
The government says the defendants could face prison and hundreds of thousands of dollars in fines if convicted.