Press Release
FOR IMMEDIATE RELEASE
Date: January 31, 2007
Contact : Sue McKinney
TAX FRAUD VIOLATORS
United States Attorney Maxwell Wood for the Middle District of Georgia, announced the that JOSEPH JORDAN, SR., of Warner Robins, ERETTA NELSON, formerly of Fort Valley, OZEE ROGERS, SR., of Macon, and HEWIS CROSS, of Leesburg, were convicted following a jury trial before the Honorable Judge C. Ashley Royal of Conspiracy to File False Claims for refunds with the Internal Revenue Service, a violation of Title 18 United States Code, Section 286, and with multiple counts of filing or causing false claims for refunds to be filed with the IRS, violations of Title 18 United States Code, Section 287. The maximum penalties for violation of Section 286 is 10 years imprisonment and a $250,000 fine, and the maximum penalties for each violation of Section 287 is 5 years imprisonment. The remaining defendants Ernest T. Butts, Calvin A. McCaskill, and Lola C. Brokemond were found not guilty.
The indictment stated that the defendants were the promoters and recruiters for a scheme to file false claims for refunds with the IRS. The defendants recruited taxpayers to file false amended tax returns with the IRS, wherein the taxpayers would claim tax refunds to which they were not entitled ranging from $33,913.00 up to $89,612.00. The recruited taxpayers were told by the defendants that the IRS secretly places taxes paid by individual taxpayers into interest bearing accounts, and that the defendants had access to inside information relating to how these funds could be obtained through the filing of amended tax returns claiming refunds. Evidence at trial showed that at least 112 of these false claims were filed with the IRS, and that 10 refunds were actually paid before the scheme was stopped by the IRS. Evidence showed that recruited taxpayers were required to pay one or more of the defendants a document preparation fee ranging from $200 up to $1,500, and also were required to sign a contract or agree to pay one or more of the defendants a percentage (ranging from 10 to 25 percent) of any refund actually received from the IRS resulting from the false claims.
Sentencing for Jordan, Nelson, Rogers, and Cross will be at a date and time to be scheduled by the Court. The case was investigated by Agents of the Internal Revenue Service Criminal Investigations and prosecuted by Assistant United States Attorneys Paul McCommon and George Christian.
For further information, contact Sue McKinney, Public Affairs Specialist, United States Attorney’s Office, at (478) 752-3511.
