Several Charged In $120 Million Florida Tax Fraud Scheme

FORT LAUDERDALE, Fla. -- Seven people are facing federal tax fraud charges in Florida in a $120 million scheme authorities say involved clients in 30 states.

Prosecutors say the scam was based on the false argument that taxpayers are not responsible for debts such as home mortgages and credit card bills. The fraud involved seeking Internal Revenue Service tax refunds to pay those debts.

There were about 180 clients in the scheme and about 380 false tax returns were filed. Prosecutors say the scammers held seminars in Florida and Tennessee to recruit people.

Christopher Marrero of Davie, Fla., and Penny Jones of Rigby, Idaho, pleaded not guilty Tuesday to federal tax charges that could bring them maximum sentences of 215 years each in prison. Court hearings are upcoming for several other alleged fraud participants.

Comments

[dbrett480]

07:56 PM on 12/10/2011

Why would someone think they were not responsible for mortgages and credit card bills?

[GloriaY]

12:59 AM on 12/09/2011

It never ceases to amaze me. Why do these people never think that they will be caught? They must be republicans.

[gene40]

10:46 AM on 12/08/2011

The problem is crime pays these days nothing else does, especially in Floridah!

[webwzrd]

04:56 AM on 12/08/2011

Beware the get rich quick scheme, especially if it deals with federal taxes.

[Paulie21]

12:52 AM on 12/08/2011

Isn't it always FLorida? Or Arizona? Or Alabama? Or Mississippi?

[webwzrd]

04:55 AM on 12/08/2011

Hate to say it, 'cause I live in Ft Lauderdale, but yes, and I would bet that these folks are Republicans too.

[lvdragonlady]

11:25 PM on 12/07/2011

This kind of activity is WHY America is in this mess.
DO THE RIGHT THING and move on. IF you can not afford it DONT buy it.............
I am sure these same folks would call themselves religious..........hmmmmp

[hrpmap]

07:34 PM on 12/07/2011

The problem is that a nearly (soon to be) one hundred year old outdated tax system known as the IRS is still in place. The system itself is filled with fraud, loopholes, and is itself a crooked system. It needs to be replaced and soon, since it has destroyed many Americans as well as businesses.

[lvdragonlady]

11:26 PM on 12/07/2011

These people would CHEAT no matter what kind of tax system is in place, so what is your point?

[Dosadi]

09:30 PM on 12/08/2011

IRS is not a system. The IRS is the enforcement and collection arm of the Federal Reserve Bank which is owned by 5-6 other banks which are owned by people. If you look close you will not be able to find any legal document that gives the Federal Reserve Bank the power to do what it does. So far I have not been able to find proof that the bill that created it was ever ratified as required by the Constitution. Also. Check the IRS laws and you will see that the only forms a person is ever required to fill out and mail in mist contain red markings on the top indicating it is that type of document. Your 1040's do not have this and therefore are not required by law to be mailed in. Only your employer is required by law to send in your tax payment documentation. Unfortunately it is impossible to get a judge to hear a case based on these facts.

[nofriendofrepublicans]

07:19 PM on 12/07/2011

Do they work for Gov. Scott?

[Diane7]

04:33 PM on 12/07/2011

Maybe they are on the right track. Isn't taxation without representation against the law? Aren't most of the taxes that we have to pay illegal anyway?

215 years for tax fraud and 2 years or less for child molestation? Wow, I'd say the whole kaboodle are out of kilter!!!

[Linda from Deerfield]

04:26 PM on 12/07/2011

How gullible can people be -- "the scam was based on the false argument that tax payers are not responsible for debts such as home mortgages and credit card bills"??? I keep forgetting that 50% of people are below average in intelligence. Somehow, though, a bunch of them seem to have been earning a lot of money or they wouldn't have qualified for the scam.

[stealcity]

04:12 PM on 12/07/2011

Great time to bring back stoning. On TV would be great.

[TJ Logan]

03:55 PM on 12/07/2011

Is anyone surprised that Florida is the seat of tax fraud?

After all their governor Rick Scott, was fired from his CEO position with health care provider HCA for stealing over $2 billion from medicare. After firing Scott, HCA pleaded guilty to 14 counts of criminal fraud and paid fines in excess of $600 million in addition to restitution.

Of course, in the great American tradition of not holding CEOs accountable for crimes committed on their watch, Scott went free and then on to the Governorship of Florida.

Given the fine example of successful criminal activity by Florida's governor, it makes sense that Florida would create jobs in the Tax Fraud business.

[hackitoff]

03:20 PM on 12/07/2011

Give all the perps the max sentence - none of this 2 year bs.

Also some bad news for those who used this scheme - you may find an IRS agent knocking on your door if you haven't already and the bill you get may look like the national debt.

[sam i is]

03:18 PM on 12/07/2011

Now why would anyone want to try and steal money back from the Government.

[hrpmap]

07:37 PM on 12/07/2011

Don't steel, the government hates competition.

[blood1]

02:12 PM on 12/07/2011

Come on everyone, are you that lazy? The USDOJ.gov has a great website that list every action by the department. A quick check today: Medicare Fraud Recovery Jan 09 to date: $8.5Billion and yes some when to "whistle blowers". This case is posted on their website, it lists names and charges and description.

[Olderandwiser55]

09:38 PM on 12/07/2011

Yes, great website! great DOJ too