ORLANDO, Fla. — A Florida man has been sentenced to 21 months in prison for obstructing the IRS as part of his involvement in a tax fraud scheme, said the U.S. Attorney’s Office for the Middle District of Florida.
Arthur Grimes, of Ocoee and Orlando, participated in a fraudulent operation known as the “Note Program,” according to court documents and statements made in court.
The scheme, reportedly led by Jasen Harvey and Christopher Johnson, involved filing false tax returns that claimed large, nonexistent income tax withholdings, resulting in substantial refunds based on the purported payments.
Between 2015 and 2018, Mr Grimes is said to have caused four false income tax returns to be filed by Mr Harvey, seeking refunds totaling $627,587. The IRS is said to have paid approximately $270,000 of these claims.
When the IRS attempted to recover one of the refunds, Grimes allegedly submitted false documents and transferred funds to a nominee bank account to obstruct the agency’s efforts.
Harvey and Mr Johnson pleaded guilty to conspiring to defraud the IRS and were sentenced to 48 and 37 months in prison, respectively.
In addition to the 21-month prison sentence, U.S. District Judge Roy B. Dalton Jr. ordered Mr Grimes to serve one year of supervised release and pay approximately $238,973 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg made the announcement. IRS Criminal Investigation investigated the case.
The prosecution team included Trial Attorneys Melissa Siskind, Jeffrey McLellan, Caroline Pearson of the Tax Division, and Assistant U.S. Attorney Diane Hu for the Middle District of Florida.
