United States Attorney James T. Jacks
Northern District of Texas

FRIDAY, OCTOBER 2, 2009
http://www.usdoj.gov/usao/txn/

FORT WORTH TAX PREPARER SENTENCED TO 18 YEARS IN
FEDERAL PRISON, WITHOUT PAROLE

FORT WORTH, Texas — Joyce M. Simmons, who did business as Diamond Notary and Tax Service, was sentenced today to 216 months (18 years) in federal prison, by U.S. District John McBryde, announced U.S. Attorney James T. Jacks of the Northern District of Texas. In addition, Judge McBryde ordered that Simmons pay $28,261,295.08 in restitution to the Internal Revenue Service (IRS). In June 2009, Simmons pleaded guilty to six counts of preparing and presenting a materially false tax return to the IRS. She was remanded into custody after she entered her guilty plea.

“While most return preparers provide excellent service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government, the tax paying public and their own clients. The sentence today should send a strong message to the return preparer community that this type of behavior will not be tolerated,” said IRS Criminal Investigation, Dallas Special Agent in Charge Michael P. Lahey.

Simmons admitted that six of the returns she submitted were false and fraudulent as to material matters, in that each tax return represented that the taxpayers were entitled, under the provisions of the IRS laws, to claim exemptions, deductions, credits, or refunds, to which she well knew they were not entitled.

In plea documents signed and filed with the Court, Simmons acknowledges that the Court may order restitution for all amounts found by the Court to be due and owing to the IRS and not just the amounts charged in the indictment.

At the sentencing hearing, Judge McBryde concluded that Simmons had caused considerable loss to the IRS and concluded that $28,261,295.08 was the best available estimate for the loss. Judge McBryde also concluded that Simmons had obstructed justice by lying under oath on a number of occasions and by fraudulently transferring over $1 million worth of property after she became aware that the IRS was investigating her.

The case was investigated by IRS-Criminal Investigation and prosecuted by Robert A. Klinck.

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