Woman Sentenced In Massive Tax Fraud Case

March 31, 2012

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tax12.jpgA federal judge Friday sentenced  woman to over six years in prison for the largest tax fraud case in Alabama history, a portion of which involved an Atmore storefront business.

Alice Mobley was sentenced to 6 years and 3 months in federal prison by Chief U.S. District Judge William Steele. She will also forfeit $593,949.77 in cash and property seized from her home and business locations in March 2010, and she was ordered to pay $720,067 in restitution to the federal government.

“This was a great day for the honest taxpayers of the Southern District (of Alabama),” U.S. Attorney Kenyen Brown said in a written statement. “We have cut off the head of a widespread false tax preparation enterprise. Others who are considering using a tax return preparation business to defraud honest American taxpayers should be aware that they will face severe consequences.”

Mobley pleaded guilty in July to conspiracy, tax perjury, wire fraud and aggravated identity theft for orchestrating what was described as a systematic schedule to file thousands of false tax returns and defraud the government of hundreds of thousands of dollars.

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 Credits. 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.

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 an Atmore Police officer talk to an employee of the business during the raid. NorthEscambia.com exclusive photos, click to enlarge.

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Comments

3 Responses to “Woman Sentenced In Massive Tax Fraud Case”

  1. 429SCJ on April 2nd, 2012 3:47 am

    Should have buried that cash in zinc lid mason jars. Sounds like she had enough traffic, to have stayed legit and still have made a good go of it.

  2. bratt resident on March 31st, 2012 4:58 pm

    I always knew there was something fishy going on with that buisness, used her for years till I figured out there was turbo tax. Now I guess it explains why she could afford so much all the time. I agree she knows someone in very ” HIGH ” places.

  3. Vicki on March 31st, 2012 12:35 pm

    Wow! Only sentenced to 6 yrs, wonder who she knows in “high places”?





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