August 31, 2004

Return Preparer Sentenced in False Tax Claims Case

Memphis, TN - Terrell L. Harris, U.S. Attorney for the Western District of Tennessee, and Sherree W. Preston, Special Agent in Charge of Internal Revenue Service Criminal Investigation Division, announced today that Tenika Finnie, 26, of Memphis, was sentenced today by U.S. District Judge Jon P. McCalla to serve 18 months in prison followed by 3 years of supervised release. Judge McCalla also ordered Finnie to pay restitution in the amount of $13,681 and a $900 special assessment payable at sentencing.

Finnie pled guilty on May 28, 2004, to nine counts of filing false claims against the government. According to testimony during the plea hearing, Finnie worked as a tax return preparer for three separate tax preparation firms from January 2000 until February 2002. Finnie falsified her clients' individual income tax returns to earn extra cash for her by inflating Form W-2 wages and federal tax withholding amounts and preparing fictitious Schedules A, Itemized Deductions and/or Schedules C, Business Profit/Loss Statements. By inflating tax withholdings and decreasing taxable income, her clients obtained larger refunds than which they were entitled to receive. Upon receipt of their inflated refund, Finnie solicited and received a portion their refund once the check was negotiated.

Finnie was named in an indictment filed on December 17, 2003, charging her with 26 counts of filing false claims against the government. According to the indictment, these false returns pertained to calendar years 1999, 2000, and 2001 and claimed approximately $119,243 in refunds. The refunds claimed on each return ranged from $565 to $7,694.

This investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney Rae Oliver prosecuted the case for the government.

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