CINCINNATI - A federal grand jury here today returned a four-count indictment against Tommie Lee Brown, Jr, age 56, from Memphis, Tennessee, and Leonard Groomes 24, of Cincinnati, alleging that they obtained payments from fraudulent claims made to the IRS on income tax returns and committed bank fraud.

Gregory G. Lockhart, United States Attorney for the Southern District of Ohio, and Cromwell A. Handy, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati, announced the indictment returned today.

In the indictment, the grand jury charges that between January 2002 and April 15, 2002, Brown and Groomes recruited individuals who were willing to conspire with them to file fraudulent tax returns. The co-conspirators would take false W-2 forms to various H&R Block offices, file tax returns, and request a Refund Anticipation Loan from Household Bank f.s.b. through H&R Block. The co-conspirators would then take the loan checks to local check cashing businesses and share the funds with Brown and Groomes. Approximately 74 false returns were filed this in this scheme totaling approximately $466,011.00.

Brown and Gromes are charged with conspiracy to commit tax fraud and bank fraud. Additionally, Groomes is charged with one count of tax fraud and one count bank fraud.

"Individuals are always looking at new ways to defraud the government. With the ease that technology has allowed us to file our tax returns, it has also given criminals additional ideas to abuse the tax refund process for their own personal gain," Lockhart said.

Lockhart commended the cooperative investigation with the Internal Revenue Service, and commended Assistant U.S. Attorney Wende C. Cross who is prosecuting the case.

Conspiracy to commit tax fraud carries a maximum penalty of ten years imprisonment and a fine of up to $250,000, conspiracy to commit bank fraud carries a maximum penalty of five years imprisonment and a fine of up to $250,000, bank fraud carries a maximum penalty of thirty years imprisonment and a fine of up to $250,000. An indictment is merely an accusation. All defendants are presumed innocent until and unless proven guilty in court.