Wednesday, January 15, 2014
United States Attorney Bill Nettles has announced that Latasha Failey, 30, of North Charleston, was sentenced in federal court in Charleston, for fraudulent tax preparation.
United States District Judge Richard M. Gergel of Charleston sentenced Failey to 12 months imprisonment and one year supervised release.
Evidence presented at the guilty plea established that Failey owned and operated Failey’s Tax Service, a tax preparation business in North Charleston. Failey caught the attention of the Internal Revenue Service (IRS) after an IRS fraud detection center identified a pattern of suspicious deductions on the tax returns that she prepared.
Based on this information, a search warrant was executed at Failey’s business in March 2011, and her client files were seized. After a thorough investigation, the IRS identified at least 145 false tax returns prepared by Failey and her employees in 2009-2011.
These fraudulent tax returns caused a tax loss of approximately $500,000 to the U.S. Treasury.
Assistant United States Attorney Rhett DeHart of the Charleston office prosecuted the case. The case was investigated by agents of the IRS-Criminal Investigative Division.