04-05-04 -- McNeil, Juanita -- Indictment -- News Release

Newark Woman Who Manufactured Hundreds of Bogus W-2 Forms Surrenders

NEWARK - A Newark woman surrendered to IRS agents today after being charged in an Indictment with providing up to 500 Newark-area individuals with false W-2 Forms as part of a scheme to generate false tax refunds of thousands of dollars for each tax return, U.S. Attorney Christopher J. Christie announced. Christie also announced the recent indictment of another individual charged with preparing numerous fraudulent federal tax returns.

Juanita McNeil, 38, surrendered this morning to Special Agents of the Internal Revenue Service Criminal Investigation section. McNeil appeared this afternoon before U.S. Magistrate Judge Madeline Cox Arleo who set bail at $50,000 unsecured bond.

"It's tax season, and that is about the best time of the year to demonstrate what happens to those we catch swindling Uncle Sam and, by extension, all law-abiding taxpayers," said Christie. "IRS criminal investigators are always on the watch for schemes like these, and we're happy to prosecute them throughout the year."

The nine-count Indictment against McNeil, which was returned on March 24, alleges that in 1999 and 2000 McNeil provided individuals who had little or no income with fraudulent W-2 forms for tax years 1998 and 1999. Each of the forms stated that the individuals had earned between approximately $8,000 and $16,000 and had between approximately $2,000 and $3,000 in federal taxes withheld during the respective year.

The fraudulent W-2s resulted in tax returns which falsely claimed refunds in amounts ranging from approximately $3,000 to $6,000. The Indictment further alleges that McNeil had an agreement with each of the individuals to receive approximately 50 percent of the fraudulently obtained refund.

The Indictment alleges that McNeil entered into approximately 500 of these fraudulent arrangements. Seven individuals are identified by initials in the Indictment as participants.

The McNeil Indictment charges her with nine counts of aiding and assisting in the submission of fraudulent and false statements to the IRS, with each of those counts carrying a maximum penalty of three years in prison and a $100,000 fine.

In another Indictment returned on March 25, Leslie Chase, 63, of Orange., is accused of preparing false and fraudulent federal tax returns for more than 25 individuals for tax years 1997 and 1998. The Indictment alleges that Chase prepared falsified deductions in the returns in order to claim larger overall deductions and refunds for his clients. The Indictment further alleges that Chase charged his clients between $100 and $200 per return.

Five individuals are identified by initials in the Indictment as clients for whom Chase prepared fraudulent returns. In one case, the Indictment alleges that Chase prepared a return for an individual, R.D., which stated, among other things, that the taxpayer was entitled to a tax deduction of $37,275 based upon medical expenses, gifts to charity, unreimbursed employee expenses and losses from self-employment in a business and a refund of $6,843.

Chase is charged with 10 counts of aiding and assisting in the preparation of false income tax returns, which carries a maximum penalty of three years in prison and a $100,000 fine. Chase is named in an arrest warrant and is being sought by federal authorities.

Despite Indictment, each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt following a trial at which the defendant has all of the trial rights guaranteed by the U.S. Constitution and federal law.

Christie credited Special Agents of the IRS Criminal Investigation section, under the direction of Special Agent in Charge Patricia J. Haynes in Newark for developing the cases against McNeil and Chase.

The McNeil case is being prosecuted by Assistant U.S. Attorney Mitchell Epner, and the Chase case by Assistant U.S. Attorney Andrew Kogan, both of the U.S. Attorney's Office in Newark.

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