6 May – LAWFUEL – The Law News Network – The United States Attorney’s Office for the Northern District of California announced that Raymond Francis Hill, 58, formerly of Oakland and currently a resident of San Jose, pleaded guilty today to one count of assisting and advising in the preparation and presentation of a false U.S. individual income tax return. Mr. Hill pleaded guilty before United States District Judge Sandra Brown Armstrong on the morning of the second day of trial in Oakland.
Hill was indicted August 28, 2003, by a federal grand jury in Oakland in connection with a scheme to receive illegal refunds by submitting falsified tax returns to the IRS. According to testimony at trial, Mr. Hill began performing tax preparation work in 1967, and started a hearing aid business in the 1980s. Starting in 1997, while operating his hearing aid business, the defendant prepared so-called “zero-returns” for taxpayers. Mr. Hill prepared these false returns knowing that the “zero” income which he reported was false because the W-2 forms attached to the returns reflected significant wages. He also knew the taxpayers would file the false returns with the IRS. The count of the indictment Mr. Hill pleaded guilty to involved a taxpayer whose true federal tax liability exceeded $91,000, based on a much higher income. Hill pleaded guilty in open court without entering into a plea agreement.
According to the testimony at trial, Mr. Hill purported to be a Certified Public Accountant and a former employee of the Internal Revenue Service, when, in fact, he had never been either. He is alleged to have made these false representations to people in order to persuade them to provide money to him to prepare tax returns and amended income tax returns.
As part of the plea agreement, Mr. Hill agreed that he be enjoined from preparing other individuals’ income tax returns for a period of 7 years.
The maximum statutory penalty for aiding and assisting in violation of 26 U.S.C. Section 7206(2) is three years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. 3553.
Mr. Hill is scheduled to be sentenced in federal court in Oakland on September 13, 2005, at 10:00am before Judge Sandra Brown Armstrong.
The prosecution is the result of an investigation by Internal Revenue Service Criminal Investigation special agents Oscar Iglesias and Viktoriya Pesnya and the U.S. Attorney’s Office. Thomas Moore is the Assistant U.S. Attorney who prosecuted the case with the assistance of Kathy Tat.
A copy of this press release and related court filings may be found on the U.S. Attorney’s Office’s website at www.usdoj.gov/usao/can . Related court documents and information may be found on the District Court website at www.cand.uscourts.gov or on .
All press inquiries to the U.S. Attorney’s Office should be directed to Luke Macaulay at (415) 436-6757 or by email at [email protected] .