WASHINGTON – A federal grand jury in New Orleans, Louisiana, returned an indictment today charging three Louisiana residents with one count of conspiracy to defraud the United States, 14 counts of aiding and assisting in the preparation of a fraudulent tax return, three counts of wire fraud, and three counts of aggravated identity theft, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and the U.S. Attorney’s Office, Eastern District of Louisiana.

According to the indictment, throughout 2015, Morgan Antoine, Jennifer Austin, and Brittany Patterson conspired to file false tax returns for clients of Pelican Income Tax and Payroll Service, a tax preparation business located in Kenner and Westwego, Louisiana.   The coconspirators allegedly prepared client returns reporting false income, false withholdings, and false dependents, in order to cause the Internal Revenue Service (IRS) to pay inflated refunds.  The indictment further alleges that the coconspirators charged fees as high as $1,100 for preparing tax returns, which they often deducted from the clients’ refunds.

The indictment also charges that to conceal their involvement in the fraud, the coconspirators filed returns in the name of a third party whose personal identifying information was stolen.  Finally, the indictment alleges that Antoine and Patterson each falsified their own personal returns claiming false dependents.

If convicted, Antoine, Austin, and Patterson each face a statutory maximum sentence of five years in prison for the conspiracy charge and three years for each count of aiding and assisting in the preparation of a fraudulent tax return. Antoine and Patterson face an additional twenty years in prison for each count of wire fraud and a two-year mandatory minimum for each count of aggravated identity theft. They also face a period of supervised release, restitution, and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman and the U.S. Attorney’s Office, Eastern District of Louisiana thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Carter Guice and Trial Attorneys Lauren Castaldi and Jessica Kraft of the Tax Division, who are prosecuting this case.

Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.

WASHINGTON – Michegel Butler and Brittany Patterson, residents of St. John the Baptist Parish, Louisiana, pleaded guilty yesterday to conspiracy to defraud the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and the U.S. Attorney’s Office for the Eastern District of Louisiana. Patterson also pleaded guilty to aiding and assisting in the filing of false tax returns.

According to court documents, Butler owned Crown Tax Service LLC, located in Kenner, Louisiana, and Patterson worked there as a tax return preparer. From approximately January 2013 through April 2013, Butler, Patterson, and others conspired to inflate their clients’ refunds by preparing returns falsely claiming Schedule C businesses, dependents, and dependent care expenses. To substantiate the false expenses, the conspirators directed clients to fill out fraudulent receipts. They also encouraged some clients to buy or sell dependents that could be used on tax returns.

When sentenced, Butler and Patterson each face a maximum sentence of five years, three years of supervised release, restitution, and other monetary penalties. Patterson also faces an additional maximum sentence of three years imprisonment for each count of aiding and assisting in the preparation of a false tax return.  

Principal Deputy Assistant Attorney General Zuckerman and the U.S. Attorney’s Office for the Eastern District of Louisiana.commended special agents of Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Trial Attorneys Lauren Castaldi and Jessica Kraft of the Tax Division and Assistant U.S. Attorney G. Dall Kammer, who prosecuted the case.

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