SEARCH the Tax Division Online Files
18 U.S.C. § 286/287
Conspiracy to File False Claims for
Refund/False Claims for Refund 1NOTE: This indictment provides sample language to charge violations of 18 U.S.C. 286 and 287 in the most commonly encountered type of ELF scheme. Modification of the language will be necessary in cases involving different fact patterns. Modification of the format used may be desirable to conform to local practice.
Upon request, the Tax Division will provide this sample indictment (and the following sample plea agreement) on diskette in either WordPerfect or ASCII format.
IN THE DISTRICT COURT OF THE UNITED STATES FOR THE ____________ DISTRICT OF ____________
UNITED STATES OF AMERICA
v.
_______________________,
_______________________,
_______________________.)
)
)
)
)
)
)No. __________________
18 U.S.C., § 286;
Conspiracy, 18 U.S.C.,
287: False Claim to
a Government AgencyThe grand jury charges:
COUNT ONE [18 U.S.C., § 286] Beginning in or about [insert month], 19___, and continuing until on or about [insert month], 19___, within the __________ District of __________, defendants [insert name of defendant], [insert name of defendant], [insert name of defendant], [insert name of defendant], and [insert name of defendant], and others, both known and unknown to the grand jury, unlawfully, willfully and knowingly agreed, combined and conspired with others and each other to defraud the United States by obtaining or aiding to obtain the payment or allowance of false, fictitious or fraudulent claims.
Manner and Means Defendants [insert name of defendant], [insert name of defendant], [insert name of defendant], [insert name of defendant], and [insert name of defendant] agreed to participate in, and participated in, a scheme to obtain or help others to obtain payment of false claims for refunds from the Internal Revenue Service ("IRS") by filing in their own names, and by causing others to file, false 19___ federal income tax returns claiming refunds to which they knew they were not entitled. Defendants [insert name of defendant], [insert name of defendant], [insert name of defendant], [insert name of defendant], and [insert name of defendant] solicited, instructed and assisted others in falsely claiming federal income tax refunds through the preparation and submission of false federal income tax returns.
To accomplish the objects of this scheme, defendants [insert name of defendant], [insert name of defendant], [insert name of defendant], [insert name of defendant], and [insert name of defendant] recruited individuals to file fraudulent federal income tax returns under their own names and social security numbers. Defendant [insert name of defendant] created false Forms W-2 in the names and social security numbers of each recruited individual that contained fabricated names of employers and names of employers who did not employ the employees listed on the Forms, and that contained fabricated amounts of tax withholdings. Defendants [insert name of defendant], [insert name of defendant], [insert name of defendant], [insert name of defendant], and [insert name of defendant] also fabricated receipts for child-care expenses for the purpose of claiming false deductions and credits for child care on the electronically filed tax returns. Knowing that the false information contained in these Forms W-2 would be used to create tax returns claiming refunds for the individuals involved in this scheme, defendants [insert name of defendant], [insert name of defendant], [insert name of defendant], [insert name of defendant], and [insert name of defendant] caused the false Forms W-2 and false receipts to be submitted to commercial tax return preparers authorized by the IRS to file tax returns electronically and to be represented to such preparers to be legitimate. The false Forms W-2 and false receipts defendants created were used by the commercial tax return preparers to prepare false 19___ federal income tax returns, which were electronically filed with the IRS by the tax return preparers, on behalf of the individuals recruited to participate in the scheme by defendants. As a result of the submission to the commercial tax return preparers of the false Forms W-2 and the false receipts, these electronically filed returns claimed tax refunds to which the individuals recruited by the defendants were not entitled.
On some occasions, one or more of defendants [insert name of defendant], [insert name of defendant], [insert name of defendant], [insert name of defendant], and [insert name of defendant] accompanied the recruited individual to the office of a legitimate tax return preparer where the individual had a tax return prepared and filed electronically. The recruited individuals, acting on instructions from defendants, applied for refund anticipation loans ("RAL") through the tax return preparer. This allowed the recruited individuals to receive a cash advance on their false tax refunds from financial institutions within three to five days after the returns were electronically filed. One or more of defendants [insert name of defendant], [insert name of defendant], [insert name of defendant], [insert name of defendant], and [insert name of defendant] accompanied the recruited individuals to pick up the refund anticipation loan checks and to a check cashing service to cash those checks. Defendants then took and kept all or part of the loan proceeds from the recruited individuals. Defendants in this manner caused approximately _____ false returns to be filed, falsely claiming approximately $_____ from the United States government.
It was part of the conspiracy that each of the defendants would and did agree to participate in a scheme to falsely claim income tax refunds from the government using electronically filed tax returns.
It was further part of the conspiracy that in __________, 19___, defendant [insert name of defendant] instructed defendants [insert name of defendant], [insert name of defendant], [insert name of defendant], and [insert name of defendant] on procedures for falsely claiming income tax refunds on their own returns through the use of electronically filed income tax returns. Defendant [insert name of defendant] told the other defendants there was no chance of getting caught. Defendants [insert name of defendant], [insert name of defendant], [insert name of defendant], and [insert name of defendant] paid defendant [insert name of defendant] approximately one half of their proceeds, $_____, from their refund checks when they received them.
It was further part of the conspiracy that defendant [insert name of defendant] provided defendant [insert name of defendant] with blank W-2 forms, and that defendant [insert name of defendant] prepared and typed false Forms W-2 using the names and social security numbers of individuals recruited by other defendants to participate in the scheme, and assisted in preparing documents necessary to claim false child care deductions.
It was further part of the conspiracy that defendant [insert name of defendant] created the name of [insert name of company] Company and used that name as the employer on the false W-2 forms prepared by defendant [insert name of defendant]. In [insert month], 19___, defendant [insert name of defendant] paid for a commercial telephone answering service using the fabricated name of [insert name of company] Company and inserted that telephone number on the false W-2 forms prepared by defendant [insert name of defendant], [or, obtained telephone numbers for individuals who would falsely represent that they were agents of the employers shown on the false Forms W-2] for the purpose of deceiving any income tax preparer or IRS representative who might call to verify the employment of and wages paid to a recruited individual attempting to file a false tax return.
It was further part of the conspiracy that the defendants offered to pay a cash "referral fee" to anyone who would refer to them other individuals who would be willing to participate in the scheme and file false returns in their own names.
It was further part of the conspiracy that in or about [insert month], 19___, defendant [insert name of defendant] introduced [insert name of recruited individual] to defendant [insert name of defendant] for the purpose of facilitating the preparation of a false 19___ federal income tax return in [insert name of recruited individual's name]. Defendant [insert name of defendant] supplied [insert name of recruited individual] with a file containing false Forms W-2 and false receipts, and instructed [insert name of recruited individual] on procedures for electronically filing federal income tax returns falsely claiming refunds and applying for a refund anticipation loan.
It was further part of the conspiracy that on or about [insert month and day] 19___, [insert name of recruited individual] submitted, as instructed by defendant [insert name of defendant], a false Form W-2 and false receipts created by defendants to [insert name of return preparer], in [insert name of city and state], and requested that a return be prepared and filed electronically. [Or, On or about [insert month and day] 19___, defendant [insert name of defendant] drove [insert name of recruited individual] to the [insert name of return preparer]'s office in [insert name of city and state], where defendant [insert name of defendant] presented a false Form W-2 and false receipts for child-care expenses in [insert name of recruited individual]'s name for the preparation of a federal income tax refund to be electronically filed for [insert name of recruited individual].] Those false documents were used by [insert name of return preparer] to prepare a 19___ federal income tax return falsely claiming a tax refund of $___________. [Insert name of recruited individual] signed the declaration on the Form 8453, which stated under penalty of perjury that the information shown on that form and on the electronic return were true and correct, and completed an application to obtain a refund anticipation loan for the amount of the refund, less fees.
It was further part of the conspiracy that on or about [insert month and day], 19___, defendant [insert name of defendant] drove [insert name of recruited individual] to the [insert name of return preparer]'s office in [insert name of city and state], where [insert name of recruited individual] obtained a check drawn on the [insert name of bank] bank of [insert name of city and state], which represented the proceeds of the refund anticipation loan based on the amount of the false claim for refund. Defendant [insert name of defendant] then drove [insert name of recruited individual] to a check-cashing establishment and waited while [insert name of recruited individual] cashed that check. Defendant [insert name of recruited individual] allowed [insert name of recruited individual] to retain $_______ of the proceeds of that check and took the remainder, which he then divided with defendant [insert name of defendant].
In violation of Title 18, United States Code, Section 286.
COUNTS TWO THROUGH TEN [18 U.S.C., Secs. 287, 2] On or about the dates listed below, within the __________ District of __________, defendants [insert name of defendant], [insert name of defendant], [insert name of defendant], [insert name of defendant], and [insert name of defendant] knowingly made and presented, and caused to be made and presented, to the Internal Revenue Service, an agency of the Department of the Treasury, claims against the United States for payment, which they knew to be false, fictitious or fraudulent, by preparing and causing to be prepared, and filing and causing to be filed, what purported to be federal income tax returns, for the individuals named below, wherein claims for income tax refunds for the amounts listed below were made, knowing such claims to be false, fictitious or fraudulent.
COUNT NAME TAX DATE REFUND YEAR AMOUNT CLAIMED TWO _____________ __/__/__ ___________ $ ____________ THREE _____________ __/__/__ ___________ $ ____________ FOUR _____________ __/__/__ ___________ $ ____________ FIVE _____________ __/__/__ ___________ $ ____________ SIX _____________ __/__/__ ___________ $ ____________ SEVEN _____________ __/__/__ ___________ $ ____________ EIGHT _____________ __/__/__ ___________ $ ____________ NINE _____________ __/__/__ ___________ $ ____________ TEN _____________ __/__/__ ___________ $ ____________ In violation of Title 18, United States Code, Section 287.
COUNT ELEVEN [18 U.S.C., § 287] On or about [insert month and day], 19___, within the __________ District of __________, defendant [insert name of defendant] knowingly made and presented to the Internal Revenue Service, an agency of the Department of the Treasury, a claim against the United States for payment, which he knew to be false, fictitious or fraudulent, by preparing and causing to be prepared, and filing and causing to be filed, what purported to be a 19___ federal income tax return, wherein he claimed an income tax refund in the amount of $_______ , knowing such claim to be false, fictitious or fraudulent.
In violation of Title 18, United States Code, Section 287.
A True Bill.
_________________________
Foreperson_________________________
United States Attorney
NOTE1. For use with electronically filed false claims for refund.
Title Page || Table of Contents || Detailed Table of Contents
Table of Cases || Trial of a Criminal Tax Case
Model Jury Instructions || Indictment & Information Forms
Uploaded April 1998
