FLORIDA—Two Florida men have pleaded guilty to a scheme to defraud the United States by promoting a tax fraud scheme called the “Note Program,” according to the US Department of Justice (DOJ).
Christopher Johnson, of Orlando, and Jasen Harvey, of Tampa, entered guilty pleas to conspiring to defraud the United States by preparing tax returns that falsely claimed large income tax withholdings to receive substantial refunds. The fraudulent activity spanned from 2015 to 2018 and reportedly involved over $3 million in false claims, of which approximately $1.5 million was paid out by the IRS.
The DOJ said Mr Johnson and Mr Harvey charged their clients fees and took a cut of the fraudulent refunds they obtained.
Arthur Grimes, of Ocoee and Orlando, who previously pleaded guilty to obstructing the IRS, was involved in filing false tax returns prepared by Harvey. When the IRS sought to recover refunds based on these false returns, Mr Grimes made false statements, provided false documents to an IRS officer, and transferred funds to a nominee bank account to avoid detection.
According to court documents, Mr Johnson received over $300,000 in total from the fraudulent scheme in 2016 and 2017 but did not report this income on his tax returns, causing a tax loss of $78,259.
Johnson and Harvey each face up to five years in prison for their roles in the conspiracy, while Grimes faces up to three years for tax obstruction.
All three defendants also face possible supervised release, restitution, and monetary penalties. The court has not yet set a sentencing date for Johnson and Harvey, but Grimes is scheduled for sentencing on November 12.
The case was investigated by IRS Criminal Investigation and prosecuted by Trial Attorneys Melissa Siskind, Jeffrey McLellan, and Caroline Pearson of the Justice Department’s Tax Division, along with Assistant U.S. Attorney Diane Hu for the Middle District of Florida.
