From the DOJ press release:
A former Internal Revenue Service (IRS) district director, pleaded guilty today to conspiring to defraud the United States through his involvement in a tax fraud scheme promoted by the Topeka, Kansas-based “Renaissance, The Tax People, Inc.,” the Justice Department and the Internal Revenue Service announced. During a hearing before U.S. District Judge Carlos Murguia in Kansas City, Kan., Jesse Ayala Cota admitted defrauding the U.S. Treasury of more than $1.3 million and to earning more than $300,000 from his participation in the scheme.Full DOJ release, here.
Cota, 65, of Vista, Calif., admitted in his plea agreement that from 1997 though April 2002, the conspirators, through Renaissance, operated a scheme to defraud the government and individuals by marketing a program designed to sell illegal tax deductions through false and misleading representations. His co-conspirators, Todd Eugene Strand and Daniel Joel Gleason, previously pleaded guilty to the same fraudulent scheme. Additionally, Cota admitted that during his participation in the conspiracy, those involved prepared or had others prepare false federal income tax returns resulting in a tax loss of approximately $1.3 million.
I wonder what will happen to all the people that were convinced to use the illegal deductions?
Here is the post, I recently did about another former IRS type committing a different type of refund fraud:
Former IRS employee charged with a different type of refund fraud
So far as dishonest tax preparers, I covered this recently, also. A major Jackson Hewitt franchisee is under investigation for allegedly committing $70 million in tax fraud.
Of course, they should be considered innocent until proven guilty.