Zimbabwean man nabbed over $1,6m US tax fraud

Zimbabwean man nabbed over $1,6m US tax fraud

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By Staff Reporter

A ZIMBABWEAN man has been indicted by a grand jury in Dalllas, United States, on $1,6 million tax fraud.

Herbert Jena, 31, a tax preparer in Dallas, is charged alongside two others -- Aurora Perez and Nancy Munoz – who worked at his business, said U.S. Attorney Richard B. Roper of the Northern District of Texas and Eric Martinez, Special Agent in Charge of the Dallas Field Office of Internal Revenue Service (IRS) Criminal Investigation.

Jena was arrested on June 6 in an indictment that was returned by a federal grand jury earlier this week.

US authorities said Perez surrendered to federal authorities and Munoz is expected to surrender soon.

Jena and Perez appeared before a U.S. Magistrate Judge in Dallas who released each of them on bond. Jena was also arraigned and entered a not guilty plea. An arraignment date has not yet been set for Perez.

Martinez said: “The allegations in this indictment are that this scheme in the Dallas/Fort Worth metroplex claimed more than $1.6 million in fraudulent telephone excise tax refunds, making it one of the most egregious telephone excise tax refund fraud schemes during this filing season.

“This office is committed to disconnecting these lawbreakers and will continue to investigate and pursue charges against those who engage in tax fraud.”

According to the indictment, Dallas resident, Jena, operated two tax preparer businesses, Montfort Tax Services and Jackson Hubbert, both located at 5625 Alpha Road in Dallas.

Nancy Munoz, 24, and Aurora Perez, 41, both of Irving, Texas, worked with Jena at Montfort and Jackson Hubbert, preparing, or assisting in the preparation of, tax returns for the 2006 tax year.

According to the indictment, beginning as early as September 20, 2006, and continuing until at least March 1, 2007, the three defendants conspired together to defraud the U.S. by impeding, impairing, obstructing, and defeating the lawful functions of the IRS in ascertaining, computing, assessing and collecting federal income taxes.

Using Electronic Filer Identification Numbers (EFINs) that Jena obtained from the IRS, and information obtained from tax payers, the defendants prepared false federal tax returns using the names of actual tax clients of Montfort and Jackson Hubbert.

They manipulated the tax returns by fraudulently including false Telephone Excise Tax Refund (TETR) and Fuel Tax Credit (FTC) claims that were not valid and that they concealed from the taxpayers for whom the returns were prepared.

The TETR was a one-time credit, available on 2006 federal income tax returns, that was designed to refund previously collected federal excise taxes on long-distance or bundled telephone service paid from February 2003 through August 2006. The FTC was a federal tax reimbursement available to eligible taxpayers arising out of the non-taxable use of fuel during certain qualified business activities.

In falsifying the returns, according to the indictment, the defendants included false requests for refunds or credits from the IRS, resulting in refund and credit overpayments by the IRS and unearned and fraudulent tax preparation fees paid to the defendants. The defendants then electronically filed these fraudulent tax returns with the IRS.

The indictment alleges that between January 12, 2007, and February 20, 2007, the defendants filed, or caused to be filed, approximately 1681 individual income tax returns with the IRS using Jena’s multiple EFINs. Approximately 1200 of those returns contained requests for the TETR in excess of $60, the highest amount of the standard TETR credit.

The total amount of TETR claims submitted by the defendants was approximately $1,618,267. Approximately 774 of the returns contained requests for the FTC. The total amount of FTC claims submitted by the defendants was approximately $1,165,758.

According to the indictment, the defendants directed the fraudulently obtained income tax refunds to be deposited into bank accounts that Jena held or controlled.

All three defendants are charged in the indictment with one count of conspiracy to defraud the U.S. In addition, Jena is charged with seven counts of aiding and assisting fraud and false statements. Munoz is also charged with eight, and Perez with four, counts of the same offense.

The conspiracy count carries a maximum statutory sentence of five years in prison and a $250,000 fine, upon conviction. Each aiding and assisting fraud and false statement count carries a maximum statutory sentence of three years in prison and a $250,000 fine, upon conviction.

U.S. Attorney Roper praised the investigative efforts of the IRS - Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Jeffrey Ansley.

Earlier this year, US federal jury indicted another Zimbabwean, Onessimus Govereh, 27, on tax fraud. He faces a possible five-year jail term if convicted.
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