3 March – LAWFUEL – The Law News Network – R. Alexander Acosta, United States Attorney for the Southern District of Florida, and Brian J. Wimpling, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, announced today that defendant, Lawrence Vincent Bailey, a former detention officer with the Department of Juvenile Justice in Miami, Florida, was sentenced by United States District Court Judge Alan S. Gold in Miami, Florida. Bailey conspired with others, including a former manager at H&R Block in Opa Locka, to defraud the Internal Revenue Service (“IRS”) by obtaining and aiding to obtain the payment of fraudulent income tax refund claims from the IRS. Bailey was sentenced to twelve (12) months and one (1) day of imprisonment, to be followed by three (3) years of supervised release. Bailey was also ordered to pay restitution to the IRS in the amount of $852,458.
On September 29, 2005, defendants Bailey and Derrick Wayne Smith were charged in a twenty-one (21) count Indictment with conspiracy and substantive counts of defrauding the government with respect to refund claims, in violation of Title 18, United States Code, Section 286 and 287. According to the Indictment, Bailey and Smith, along with co-conspirators Ron J. Hill and Sheree R. Saunders, recruited taxpayers and caused the preparation of materially fraudulent federal income tax returns on the taxpayers’ behalf, claiming that these taxpayers were entitled to tax refunds based upon their purported income and deductions. In fact, the defendants and their co-conspirators knew that these taxpayers had not earned the income and were not entitled to the deductions that were reported in the returns. Defendant Vanessa G. Faulk, in her capacity as manager of H&R Block in Opa-Locka, and her husband James N. Faulk prepared and caused the preparation of fraudulent federal income tax returns on the taxpayers’ behalf knowing that the returns contained false information.
Through the scheme charged in these related prosecutions, approximately 246 fraudulent income tax returns were submitted to the IRS, resulting in false refund claims of approximately $1,200,0000.
On December 2, 2005, Bailey pled guilty to conspiring to defraud the government, in violation of Title 18, United States Code, Section 286. Co-conspirators, Vanessa Faulk, James Faulk, Ron Hill, and Sheree R. Saunders, were prosecuted previously in a separate case before Judge Federico A. Moreno. Derrick Wayne Smith is scheduled to be sentenced on April 19, 2006.
Mr. Acosta commended the investigative efforts of the Internal Revenue Service, Criminal Investigation Division. These cases were prosecuted by Assistant United States Attorney Anita J. Gay.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls . Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on .List your legal jobs on the LawFuel Network