Lydia Hernandez of Lydia Hernandez Tax Services in Salinas, California pleaded guilty to tax fraud charges on July 27, 2009 in Federal Court. As a result she was sentenced this week to 15 months in prison for tax evasion including aiding and assisting in preparing false tax returns. She was also ordered to pay $35,433 in restitution, the U.S. Attorney’s Office said, and three years of supervised release.

Authorities said Hernandez prepared 39 income tax returns on behalf of 13 clients for the 2002 through 2005 tax years.

In the plea agreement, they said, Hernandez admitted that she prepared false returns in order to reduce the taxable income for the clients and obtain a bigger refund for them than they were entitled to receive.

Hernandez also admitted that for the 2004 tax year, she underreported her business income by $51,129 on her individual tax returns.

She will begin her sentence September 27, 2010.

A Harris County judge rules the death penalty to be unconstitutional–despite judges who repeatedly ruled the other direction in the past. Some believe this is legislating from the bench, others argue that judges overturning laws and precedent is simply how the system functions. Hear what Joel Androphy has to say:

Harris County Judge Rules Death Penalty Unconstitutional
Even though it’s the law in Texas, the judge declared the death penalty unconstitutional. It was a victory for those against capital punishment. Read More

Last week, Swiss Parliament approved an agreement between Switzerland and American to disclose information on approximately 4,450 Swiss bank accounts that are held by American clients who are under investigation for tax fraud.

Swiss banking has always been known for secrecy, but recent court orders to disclose client information in criminal investigations could not be ignored. In fact, directors of UBS, the bank in question, could have faced indictment and legal action from American courts for failure to comply with court orders.

Just two years ago, the Switzerland-based investment bank, UBS, came under the scrutiny of the U.S. DOJ for assisting Americans with tax evasion schemes and was fined $790 million for facilitating fraud.

UBS is currently in the process of transferring the court-ordered information on clients. In the wake of recent financial crisis, many governments, including the U.S. Government, have increased efforts to penalize tax evaders.

Here’s what attorney Joel Androphy has to say about a teen who didn’t fulfill her civic responsibility.

Bradley Birkenfeld, the former banker who blew the whistle and helped uncover the largest tax fraud scheme to date came forward last month with additional information. Birkenfeld is now claiming that U.S. politicians took advantage of the same Swiss bank account scheme as many of the country’s executives.

Birkenfeld is currently serving a 40-month term in federal prison for his part in the UBS tax evasion scheme. Although he blew the whistle on the scam, federal prosecutors claim that he withheld important information about his own dealings.

From prison, he alleged over the phone that only the bank’s top executives knew about what they called the PEP Office (Politically Exposed Persons) for politicians who were seeking to store undisclosed money away in Swiss bank accounts. Birkenfeld alleges that the New York based “referral desk” that steered many rich Americans to the Swiss branch of UBS also served political clients whose names have not been revealed.

Birkenfeld’s lawyers are currently seeking clemency from President Obama on the ground of Birkenfeld’s importance in uncovering the largest tax evasion scheme in American history.

Michael Craig Cooper, a 55 year old man from Topeka, Kansas, was sentenced to 20 years in prison for Tax Fraud. Cooper is the founder Renaissance (The Tax People) and was sentenced on more than 70 tax fraud counts.

In addition to serving those 20 years, Cooper will also be required to pay $10 million in restitution to the United States Government to cover the extent of his fraudulent activities, as well as a forfeiture of about $75 million.

The case was decided in 2008 when a federal jury found Cooper guilty on 73 counts of tax fraud including mail fraud, wire fraud, money laundering and conspiracy.

As America files taxes, stories of tax fraud, evasion and scams begin to hit the press. Many Americans choose to have their taxes filed by a CPA, and are employed by companies that issue tax paperwork to each employee. Usually, these basic tax-season transactions go as planned. But, if you’re one of the individuals who has seen tax fraud first hand, you should report it today.

If you are having your taxes prepared by a professional who is behaving suspiciously or has tried to sell you on a scam to make more money by filing for losses you don’t have, make sure to report them. If your company has with-held information or asked you to lie to the government on your earnings, you could have a potential case. Our team of experienced attorneys can help you decide what the next steps should be.

As a whistle blower, you will receive a portion of whatever money the U.S. Government gains back in court proceedings. Do your country, fellow citizens and yourself a favor by reporting tax fraud if you suspect it. Berg & Androphy has handled many types of Qui Tam cases, including tax fraud. We’re more than happy to help you assess your potential case and decide what the next steps should be.

If you blow the whistle on fraudulent behavior, you can reap substantial financial rewards.

If you suspect tax fraud, contact Berg & Androphy using our online Qui Tam Form today!

According to press release from government agencies, eight individuals from Florida, Oregon and the East Coast were recently convicted on charges of tax, wire-fraud and money laundering. The Justice Department described these individuals, who were working for the firm Pinnacle Quest International (also known as PQI and Quest International) as promoters of fraudulent tax and credit-card debt elimination schemes.

PQI was an umbrella organization for many tax and credit-card debt elimination schemes. The individuals convicted were perpetrators of the scheme, working on the executive council, and in PR and other positions.

Sentencing is scheduled for July 9th. Leaders of the scheme could receive up to 30 years in prison and fines of $1 million. Other defendants in the case will receive lesser penalties: a maximum of 5 years and $250,000 in fines.

Operators of the family business, Adams Beach Income Tax, are being charged with tax fraud of up to $15 million in damages after allegedly filing false claims on behalf of themselves and clients.

Father Alexander Adams and his two sons, Garrett Adams and Brandon Adams, promoted their tax fraud schemes through live seminars, CD’s and web advertising.

The fraud was built around claims of inflated tax refunds and fabricated income tax with-holdings. If the men are found guilty, they will face civil penalties and be barred from the tax industry in the future.

Former Internal Revenue Service (IRS) Officer Mark E. Hunt, along with three other Maryland men, has been charged in a Tax Evasion scheme. The scheme was orchestrated by Potomac attorney Irvin Catlett and totaled $1.2 million. Hunt worked as Catlett’s inside man and provided taxpayer information while using his position with the IRS to convince clients that the scheme was safe from prosecution.

Catlett has been charged with fraud, obstruction of IRS law, and 10 counts of aiding and assisting in the preparation of false tax returns. The scheme worked by absorbing the investments (supposedly in three car dealerships) of clients and then posting the dealerships as losses on the client’s returns, allowing the taxpayers to negate their taxable income because of the supposed “losses.”

Catlett faces up to 38 years in prison. Hunt faces up to 13 years for lying to an investigator and participation in fraud and the other three conspirators face up to 5 years each.