A Southwest Georgia man has landed himself a guilty verdict for a fraudulent tax filing scheme, marking his second bout with federal fraud convictions. Reginald Knight, a 52-year-old from Arlington, Georgia, was convicted on one count of making and subscribing a false tax return, as reported by the U.S. Department of Justice yesterday. Following a two-day trial in Albany, beginning on Tuesday, the jury made their decision on Wednesday.
With a maximum sentence of three years behind bars, three years of supervised release, and a steep $100,000 fine hanging over his head, Knight is awaiting sentencing from Chief U.S. District Judge Leslie Abrams Gardner. No date for the sentencing has yet been set, leaving Knight to consider his fate until the court determines the appropriate time. The conviction stems from a tax return filed on March 13, 2018, wherein Knight falsely claimed over $3 million in wages, substantial withholdings, and heavy business losses, which, as the trial evidenced, were entirely fabricated.
The Acting U.S. Attorney C. Shanelle Booker didn't mince words when describing the deception, saying, "The defendant was claiming millions in refunds for a business that never generated income or incurred any losses, fabricating these claims in yet another attempt by the defendant to steal from taxpayers," as reported on the Justice Department's website. IRS investigators collaborated closely with the U.S. Attorney's office to bring down Knight, highlighting the seriousness with which the government takes such fraudulent activities.
Assistant Special Agent in Charge Lisa Fontanette of IRS Criminal Investigation's Atlanta Field Office pointed out that the "guilty verdict serves as a notice to unscrupulous tax preparers that filing fraudulent tax returns will lead them to a criminal court date." According to court documents, Knight's scheme included concocting W-2s and Schedule Cs for businesses that neither generated income nor suffered the claimed losses, according to Department of Justice. Despite his attempts, the IRS did not release the majority refunds sought by Knight, saving the possible siphoning of significant taxpayer funds.
Not a novice in the world of fraud, Knight has a prior federal conviction from the Southern District of Florida on his record. In 2005, he was sentenced to five months in prison for a tax refund related conspiracy to defraud the government. This time, however, the consequences he faces are vastly more severe. The IRS Criminal Division and Special Enforcement Program are investigating the case, with Assistant U.S. Attorney Veronica Hansis leading the prosecution.
