Tax Preparer Indicted On Tax, Mortgage Fraud Charges; $68 Million Scheme

February 4, 2011

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tax12.jpgA former Alabama tax preparer has been indicted by a federal grand jury on 80 counts charging her with conspiracy, preparing and filing false tax returns, mortgage fraud, and wire fraud.

Alice Mobley of Monroeville, Ala., was charged in connection with the filing of false tax returns through her business, Preyear Tax and Check Cashing, LLC, located in Monroeville with offices in Atmore and Thomasville, as well as two other businesses with which Mobley was involved, Kimble and Preyear Tax Service in Greenville, Mississippi and Henry’s Tax Service in Longview, Texas.

Federal agents raided Mobley’s Preyear’s Tax & Check Cashing, LLC on Ridgely Street in Atmore and other locations in March, 2010. Federal court documents show that FBI and IRS agents seized over $300,000, boxes of tax documents, computers, vehicles and even a stuffed teddy bear when they raided the businesses and Mobley’s Monroeville home.

Mobley’s scheme filed tax returns claiming some $68 million in tax refunds, largely for Earned Income Credit and other tax credits, according to the Department of Justice. Mobley would falsely claim various dependent credits, either charged her clients an extra fee for the using the false dependents or pocketing the extra funds herself.

Mobley also “split” dependents, using the identity of some children on one return to obtain Earned Income Credit, and on other returns to obtain Child Credit and Dependent Care Credit. Mobley’s firm also prepared returns which claimed business tax deductions for business which did not exist and farm tax deductions for clients who did not have farms, the DOJ said.

Mobley was also charged with mortgage fraud and wire fraud in connection with fraud in regard to applications she made for mortgages to CitiBank and Wells Fargo.

She faces a maximum of 30 years in prison and fines of $250,000.

Pictured above: A federal agent enters Preyear’s Tax & Check Cashing, LLC in Atmore March 4, 2010. Pictured inset: Agents search a vehicle at the business. Pictured below: A federal agent and Atmore Police officer talk to an employee of the business during the raid. NorthEscambia.com file photos, click to enlarge.

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Comments

7 Responses to “Tax Preparer Indicted On Tax, Mortgage Fraud Charges; $68 Million Scheme”

  1. concerned citizen on February 5th, 2011 9:56 am

    I agree with Tracy.. When you steal from our government, you are stealing from all citizens.. These people do not consider defrauding the government (all of us) stealing, and will do anything to “get over” on anyone they can..

  2. You Who on February 4th, 2011 3:19 pm

    Before you go to jail can you show me how to do it. The Government been ripping me off for years and now it’s my turn.

  3. tracy on February 4th, 2011 11:57 am

    Don’t people realize when they steal from the government they’re stealing from themselves!! Well, stealing from those of us who actually WORK and CONTRIBUTE!! Get a JOB, morals and self respect!

  4. Jack on February 4th, 2011 9:09 am

    Customers went along with it because they heard what they wanted to hear. The same mentality that has caused the mortgage problems. Dollars are mentioned and common sense goes out the window.
    Stop the EITC or make it non-refundable and most fraud will stop.

  5. be aware on February 4th, 2011 9:01 am

    This is why you shouldn’t let just anyone prepare your tax return.

    You have to give them information that could ruin you, soc.sec. #, home address, date of birth, etc. Any and all could very well be used in false tax returns! Just think of the difficulty it would be to clear this up!

  6. TaxPayer on February 4th, 2011 8:56 am

    Fine of $250,000 and 30 years for $68,000,000…. WHAT A DEAL!!!! Pay all the funds back to the taxpayers. Our social security and medicare are broken, we need the funds.

  7. doofus on February 4th, 2011 7:00 am

    She had to know this was coming. Filing taxes for people with made up dependents… The bad thing is that her customers knew she was making stuff up and went along with it. Why aren’t they charged? They took part in the fraud too.





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