Raleigh Tax Fraud Lawyers

Raleigh Tax Fraud Lawyers: When Helping Hands Delivers 132 Months In Prison

Herbert Lee Martin operated a tax preparation business in Rockingham, North Carolina called “Herb’s Helping Hands.” The name promised assistance. What he delivered was federal prison. Martin didn’t just commit fraud himself – he taught his three nieces how to prepare false returns and supervised their work. He stole personal identifying information, including the identities of minor children, to list as false dependents on returns. His sentence: 132 months in federal prison – eleven years – plus $10.7 million in restitution.

The Eastern District of North Carolina has seen tax fraud at scales that destroyed lives and careers. A Raleigh man who operated multiple fraudulent tax businesses simultaneously. A CFO who paid himself $25 million in unreported income. When federal prosecutors in Raleigh bring tax charges, the defendants often operated businesses that served communities while defrauding the government.

Herbs Helping Hands Delivered 132 Months

Herbert Lee Martin ran Herb’s Helping Hands in Rockingham, North Carolina from at least January 2012 through April 2016. The business name suggested community assistance. The reality was a fraud operation that involved three generations of his family.

Martin didn’t just commit fraud himself. He taught his three nieces how to prepare false tax returns. He supervised their work. The fraud became a family enterprise where the next generation learned criminal techniques from their uncle.

Heres the thing about how Martin’s scheme worked. He reported fictitious or inflated income to generate false Earned Income Tax Credits. He created fake business income and losses. He fabricated deductions. And when he needed more dependents to claim credits, he purchased – and sometimes stole – personal identifying information of individuals, including minor children.

Martin also directed some clients’ refunds into his own bank account or accounts he controlled. The clients came in expecting help with there taxes. They left with returns filed that claimed false dependents and generated refunds that went to Martin instead of them.

Chief U.S. District Judge William L. Osteen Jr. sentenced Martin to 132 months in federal prison – eleven years. The court ordered restitution to the IRS of at least $10,705,968. Eleven years for a tax preparation business. Over $10 million in restitution.

Tax Kings And The Raleigh Fraud Ring

Garvey Imhotep operated multiple tax preparation businesses in Raleigh between 2011 and 2014. The business names – Tax Kings, Two Brothers Tax Service, and Taxes Done Right – all promised quality service. What they delivered was a conspiracy to file false returns that resulted in over $2 million in fraudulent refunds.

The scheme operated across multiple businesses simultaneosly. Clients at Tax Kings recieved the same fraudulent treatment as clients at Two Brothers Tax Service. The multiple storefronts werent competing businesses – they were different locations for the same fraud conspiracy.

U.S. District Judge James C. Dever III sentenced Imhotep to 45 months in federal prison. The court ordered $2,144,888 in restitution to the IRS.

The CFO Who Paid Himself Twenty Five Million

Christopher Scott Harrison was the CFO of a North Carolina company. His job was managing corporate finances. What he did was pay himself $25 million in income that he never reported to the IRS.

Heres the thing about executive self-dealing at that scale. Twenty-five million dollars in unreported income dosent happen accidentaly. Harrison willfully filed a false tax return that omitted nearly $25 million in income he paid to himself from his company.

U.S. District Court sentenced Harrison to 18 months in federal prison followed by one year of supervised release. The court ordered more than $4.6 million in additional restitution.

A Thousand False Returns Over Nine Years

Betty Hawkins and Phyllis Ricks operated a tax preparation conspiracy in Rocky Mount, North Carolina from approximately 2009 through 2018. Nine years of fraud. Over one thousand false tax returns. Approximately $5 million in fraudulent refunds claimed.

Heres the uncomfortable truth about long-running schemes. Each year adds more returns. Each year adds more fraudulent refunds. Each year adds more evidence for prosecutors.

U.S. District Court sentenced Ricks to three years in federal prison and Hawkins to two years. The court ordered approximately $5.2 million in restitution. Combined, five years in federal prison for the two preparers.

Mental Health Provider Stole Employee Taxes

Sainte Deon Robinson ran OneCare Inc., a mental health service provider in Raleigh. His employees had federal income taxes, Social Security taxes, and Medicare taxes withheld from there paychecks. Robinson collected those withholdings. He never paid them to the IRS.

From 2010 to 2013, Robinson failed to report and pay over almost $1.7 million in employment taxes. Nearly $1.7 million that was supposed to fund Social Security and Medicare for his employees.

U.S. District Court sentenced Robinson to 30 months in federal prison. The mental health service provider who was supposed to help people with there emotional wellbeing stole from the financial wellbeing of his own employees.

North Carolinas Dual Prosecution Reality

North Carolina has a state income tax at 5.25%. Unlike Florida or Texas with no state income tax, North Carolina has BOTH state AND federal tax fraud enforcement. The NC Department of Revenue investigates state tax crimes. Federal prosecutors in the Eastern District of North Carolina handle IRS cases.

State and federal agencies coordinate. They share intelligence. They collaborate on investigations. State tax evasion in North Carolina is classified as a Class 1 felony that carries a maximum prison sentence of 15 years.

Defense Strategy In Raleigh

If your facing tax fraud exposure in Raleigh, the calculus involves understanding how the Eastern District operates.

The Martin case shows that family involvement compounds exposure – teaching relatives to commit fraud extended the conspiracy. The Imhotep case shows that multiple businesses means multiple locations for the same fraud. The Harrison case shows that executive self-dealing gets discovered when investigators trace corporate fund flows.

Heres what these cases have in common. By the time defendants faced prosecution, there options had narrowed dramaticaly. The investigations were complete. The evidence was gathered. The schemes were documented. The 90% federal conviction rate means fighting the charges rarely succeeds.

The time to address tax fraud exposure is before any of that happens. Voluntary disclosure programs exist. Coming forward before the IRS finds you creates opportunities to resolve issues civily – with penalties and interest, but potentialy without prison. Appeals go to the Fourth Circuit Court of Appeals. Your exposure persists untill you address it.