U.S. Department of Justice sues Huntington Beach, CA business for $15 million tax fraud scheme
March 17th, 2010 - 12:32 am ICT by BNO News ( Leave a comment )WASHINGTON, D.C. (BNO NEWS) – The U.S. sued a father and his two sons for allegedly scheming a multi-million dollar tax fraud in California, the U.S. Justice Department said Tuesday.
Alexander Adams and his two sons, Garrett and Brandon Adams, operate Adams Beach Income Tax in Huntington Beach, California, and allegedly attempted to embezzle over $15 million in fraudulent refunds from the U.S. Treasury for customers and for themselves.
According to the complaint, Adams Beach Income Tax prepare federal income tax returns claiming substantial fraudulent tax refunds based on manufactured income tax withholdings. Alexander and Garrett Adams allegedly falsify Internal Revenue Service (IRS) documents as they have requested two fraudulent refunds for $2.5 million a piece – one for Garrett Adams himself, and the other for a customer. Alexander Adams also requested a counterfeit refund for himself in the amount of $361,147, the suit alleges.
The complaint also alleges that Brandon Adams looks for new business options by promoting the tax fraud scheme through live seminars, Web sites, conference calls, CDs and one-on-one instruction.
The lawsuit is seeking to bar the Adams and their business from preparing federal tax returns for other
“Taxpayers thinking of participating in the illegal scheme described in this lawsuit should consider that, in addition to risking criminal prosecution, they also risk incurring civil penalties of as much as 20% of the amount of their bogus refund claim,” said John A. DiCicco, Acting Assistant Attorney General for the Justice Department’s Tax Division. “For false claims on the scale described in this case, the 20% penalty could result in scheme customers losing their savings and their homes.”
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