Florida men plead guilty to $3M fraudulent tax return scheme

Florida men plead guilty to $3M fraudulent tax return scheme
IRS was persuaded to pay out $1.5M in falsely claimed refunds.
AUG 23, 2024

Three men from Florida are facing jail time after an Internal Revenue Service investigation uncovered fraudulently claimed tax refunds.

Two of the men - Christopher Johnson, of Orlando, Florida, and Jasen Harvey, of Tampa, Florida – pleaded guilty this week of conspiring to defraud the United States by promoting a tax fraud scheme.

The ‘Note Program’ offered clients the opportunity to have tax returns prepared by Harvey and others, claiming large non-existent income tax withholdings had been paid to the IRS and requesting refunds. The duo promoted the scheme from 2015 to 2018 and charged clients a fee and a percentage of their fraudulently claimed refunds.

The IRS paid out $1.5 million of the more than $3 million that had been claimed.  

Johnson was paid more than $200,000 in 2016 and more than $100,000 in 2017 as his share of the proceeds from the scheme, although even this was not correctly reported to the IRS resulting in a tax loss of $78,259.

The third man - Arthur Grimes, of Ocoee and Orlando, Florida –pleaded guilty in April to obstructing the IRS when he was found to have filed four false claims and submitted false documents when the IRS tried to recover the refunds. He will be sentenced in November with a potential maximum sentence of three years in jail.

Johnson and Harvey will be sentenced later and could face up to five years in jail. All three defendants also face a period of supervised release, restitution and monetary penalties.

Latest News

Mercer Advisors lands third-biggest deal to date with Full Sail Capital
Mercer Advisors lands third-biggest deal to date with Full Sail Capital

With over 600 clients, the $71 billion RIA acquirer's latest partner marks its second transaction in Oklahoma.

Fintech bytes: FP Alpha rolls out estate insights feature
Fintech bytes: FP Alpha rolls out estate insights feature

Also, wealth.com enters Commonwealth's tech stack, while Tifin@work deepens an expanded partnership.

Morgan Stanley, Atria job cut details emerge
Morgan Stanley, Atria job cut details emerge

Back office workers and support staff are particularly vulnerable when big broker-dealers lay off staff.

Envestnet taps Atria alum Sean Meighan to sharpen RIA focus
Envestnet taps Atria alum Sean Meighan to sharpen RIA focus

The fintech giant is doubling down on its strategy to reach independent advisors through a newly created leadership role.

LPL, Evercore welcome West Coast breakaways
LPL, Evercore welcome West Coast breakaways

The two firms are strengthening their presence in California with advisor teams from RBC and Silicon Valley Bank.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave

SPONSORED The evolution of private credit

From direct lending to asset-based finance to commercial real estate debt.