NEWS RELEASE

OFFICE OF THE UNITED STATES ATTORNEY

WESTERN DISTRICT OF MISSOURI

BRADLEY J. SCHLOZMAN

Contact Don Ledford, Public Affairs ● (816) 426-4220 ● 400 East Ninth Street, Room 5510 ● Kansas City, MO 64106

www.usdoj.gov/usao/mow/index.html

SEPTEMBER 26, 2006

FOR IMMEDIATE RELEASE

TAX PREPARER PLEADS GUILTY TO

FALSE TAX RETURNS

KANSAS CITY, Mo. – Bradley J. Schlozman, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman pleaded guilty in federal court today to assisting her clients in filing false and fraudulent tax returns.

Sharon Ann Hubbard, 62, of Kansas City, waived her right to a grand jury and pleaded guilty before U.S. District Judge Ortrie D. Smith this morning to one count contained in a 38-count federal information, which charges her with aiding or assisting the filing of a fraudulent tax return.

Hubbard, who worked as a self-employed tax-return preparer, admitted that she prepared federal income tax returns and amended tax returns on behalf of her clients during 2002 and 2003. Those returns contained material false and fraudulent claims of deductions and expenses, including fictitious and/or inflated deductions for charitable contributions, job-related expenses, and medical expenses which resulted in increased tax refunds for which her clients were not entitled.

By pleading guilty today, Hubbard admitted that she prepared multiple false and fraudulent income tax returns and amended income tax returns. According to today’s plea agreement, the Internal Revenue Service has determined that the resulting tax loss from the fraudulent returns is at least $101,756, but not more than $385,869.

Under federal statutes, Hubbard could be subject to a sentence of up to three years in federal prison without parole, plus a fine up to $100,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney W. Brent Powell. It was investigated by IRS-Criminal Investigation.

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