Mehef Bey, who went by the alias Arthur Daniels, traveled the country recruiting people to file bogus tax returns seeking hundreds of thousands of dollars in refunds from the Internal Revenue Service, according to federal prosecutors. He succeeding in recruiting at least 200 clients from 19 states, according to the government. Now he’s facing prison. Bey pleaded guilty on Monday, Jan. 3 to charges of conspiring to defraud the government and filing false tax returns. He is the fourth person charged in this scheme to plead guilty. Bey was one of the primary speakers at the tax seminars and he and others involved told prospective clients the IRS owed them money in the form of tax refunds on their mortgages and other debts, the government said.
Backstrom ultimately chose which clients would be permitted to participate, prosecutors said, and he and Bey provided instructions to other co-conspirators regarding what documents were needed. They reportedly collected names, social security numbers and addresses, often referred to as “intake” information, to file fake 1099-MISC forms, which are typically used to report forms of miscellaneous income.
Bey and his fellow conspirators filed the forms through online tax form preparation companies and made it look as if they had been prepared by financial institutions, prosecutors said.
Bey kept track of payments and what was owed to so-called subpromoters working under him and Iran Backstrom, also known as Shariyf Noble, from Milledgeville, Georgia.
The fraud lasted from 2014 to 2016, during which time Bey is accused of helping to submit requests for refunds totaling $64 million — about $38.5 million of which was doled out.
Under the terms of the plea agreement, Bey will pay more than $38 million in restitution and be permanently barred from preparing or assisting in the preparation of any federal tax returns for anyone other than himself.
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Joel Tucker was sentenced to 12 years and six months in federal prison and ordered to pay over $8 million in restitution to the IRS after selling false information or fictitious debts to payday loan businesses and not filing federal tax returns – for himself or his businesses – with the IRS for multiple years.
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John Piccarreto Jr. was sentenced to 84 months in federal prison and ordered to pay restitution totaling $19,842,613.66 after he was convicted of conspiracy to commit mail fraud and filing a false tax return. He conspired with others to obtain money through an investment fraud Ponzi scheme.
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Rossen G. Iossifov, a Bulgarian national, was sentenced to 121 months in federal prison for participating in a scheme where popular online auction and sales websites — such as Craigslist and eBay — falsely advertised high-cost goods (typically vehicles) that did not actually exist. Once victims sent payment for the goods, the conspiracy engaged in a complicated money laundering scheme where U.S.-based associates would accept victim funds, convert these funds to cryptocurrency, and transfer the cryptocurrency to foreign-based money launderers.
Now that the 2022 tax season is open, the Internal Revenue Service reminds taxpayers to make sure they’ve got what they need before they file and to consider free resources available to help them get organized.
Don’t file before ready While taxpayers should not file late, they also should not file prematurely. People who file before they receive all the proper tax reporting documents risk making a mistake that may lead to processing delays.
Typically, year-end forms start arriving by mail – or are available online – in January. Taxpayers should review them carefully. If any of the information shown is inaccurate or not available, taxpayers should contact the payer right away for a correction or to ensure they have their current mailing or email address.
New this year, the IRS sent Letter 6419, Advance Child Tax Credit Reconciliation, in January 2022 to help individuals reconcile and receive the full amount of their 2021 Child Tax Credit. This letter includes the total amount of the 2021 advance Child Tax Credit payments issued and the number of qualifying children used to calculate their advance payments. People need this important information to accurately claim the other half of the 2021 Child Tax Credit when filing their 2021 tax return and prevent delays in processing. The IRS reminds people to check this information carefully.
Most eligible people were already issued their third Economic Impact Payment and won’t include any information about it when they file. However, people who didn’t qualify for a third payment or did not receive the full amount may be eligible for the 2021 Recovery Rebate Credit based on their 2021 tax situation. They will need the total amount of their third Economic Impact Payment to file an accurate tax return to avoid a processing delay. Taxpayers can sign into their IRS Online Account to view the total amount of the third-round Economic Impact Payment or wait to receive IRS Letter 6475.
Individuals not required to file must file a tax return to claim important tax credits The IRS strongly encourages individuals who are not required to file a tax return to file one this season to claim potentially thousands of dollars in tax credits. By filing a tax return, individuals could claim:
The Recovery Rebate Credit to receive any remaining 2021 stimulus payments that they might not have received (for example, if they added a new child or other dependent in 2021);
The remaining Child Tax Credit for which they are eligible, including any monthly payments that they might not have received (for example, if they added a new qualifying child in 2021); and
The Earned Income Tax Credit, the federal government’s largest refundable tax credit for low- to moderate-income families (the amount of which has been nearly tripled for filers without children).
View IRS account information online Individuals can use their IRS Online Account to securely access information about their federal tax account, including payments, tax records and more.
To help with filing a return, individuals can view:
The total amounts of Economic Impact Payments issued for tax year 2021
The total amount of advance Child Tax Credit payments
Their adjusted gross income from their last tax return
The total of any estimated tax payments they made, and refunds applied as a credit
They can also now make and track payments and manage communication preferences, including the option to go paperless and request email notifications for certain notices available online. Taxpayers are encouraged to register for an online account, if they haven’t already, or sign in to access this information and explore these new features.
Important 2021 Tax Documents Organized tax records make preparing a complete and accurate tax return easier and may help taxpayers find overlooked deductions or credits.
Taxpayers should wait to file until they have all their supporting income statements including but not limited to:
Courtesy of the Internal Revenue Service
Forms W-2 from employer(s)
Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends and distributions from a pension, annuity or retirement plan
Form 1099-K, 1099-Misc, W-2 or other income statement if they worked in the gig economy
Form 1099-INT if they received interest payments
Other income documents and records reporting virtual or crypto currency transactions
More than 400 tribes and tribal organizations accused the prescription drug industry’s largest players of purposely flooding their communities with highly addictive opioids, causing overdose deaths and health care costs to skyrocket. The settlement is with Johnson & Johnson and the country’s three largest drug distribution companies: AmerisourceBergen, Cardinal Health and McKesson. There are some details that are still in the works, but all federally recognized tribes in the U.S. will be able to take part in the settlements, even if they did not sue over opioids. There could also be settlements between other firms in the industry and tribes, many of which have been hit hard by the overdose crisis. W. Ron Allen, chair of the Jamestown K’Klallam Tribe in Sequim, Washington, has emphasized the importance of tribes reaching their own settlement. This shows progress since tobacco industry deals in the 1990s left out Native Americans.
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BH Cosmetics, which recently created makeup lines with Doja Cat and Iggy Azalea, has filed for bankruptcy. The cosmetics brand filed for chapter 11 bankruptcy protection on Jan. 14, with plans to sell its intellectual property for $4.3 million. BH sold its products online, as well as through Ulta Beauty and other retailers. BH said in court papers that it hired Hilco Streambank and has signed a purchase agreement with RBI Acquisition Holdings LLC as the stalking-horse bidder for the assets. A pre-petition sale attempt, where the company hired a banker to sell itself starting in September, did not work out, the company wrote in court papers.
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The Ayvazyan family received sentences ranging from 17.5 years in prison to 10 months of probation for crimes ranging from bank and wire fraud to aggravated identity theft. The family used stolen and fictitious identities to submit 150 fraudulent applications for COVID-relief funds based on phony payroll records and tax documents to the Small Business Administration, and then used the funds they received to purchase luxury homes, gold coins, jewelry designer handbags and more. Richard Ayvazyan and his wife Terabelian cut their ankle monitoring devices and absconded prior to their sentencing hearing.
If you’re looking to speak to an attorney, call us at 816-524-4949 or click here to schedule a consultation.
The Consumer Financial Protection Bureau (CFPB) has sued United Debt Holding (UDH), JTM Capital Management (JTM), United Holding Group (UHG), and their owners, Craig Manseth, Jacob Adamo, and Darren Turco, for illegal debt-collection practices, according to a CFPB press release. The CFPB alleges that the defendants placed consumer debt with, or sold consumer debt to, collection companies that used unlawful and deceptive collection tactics. The defendants knew, or should have known, the collection companies made false threats and false statements to consumers. And although some of the defendants have been the subject of prior enforcement action, they continued their unlawful practices.
If you’re in debt and struggling financially, call our office at 816-524-4949 or click here to schedule a consultation in order to determine your best option.
Wells Fargo & Co. has said that it will stop charging customers fees for bouncing checks and will waive fees for customers using its overdraft protection services by March 30, as it becomes the latest bank to announce changes to overdraft policies amid growing regulatory scrutiny. Wells Fargo will also give customers who overdraw their accounts 24 hours to bring the balance above $0 before charging them a $35 fee, and it will begin giving customers who receive direct deposits access to those funds up to two days in advance.
If you are struggling financially, call us at 816-524-4949 or click here to schedule a consultation to discuss your options.
