CHARLOTTE, N.C. - Malik Shropshire, 43, of Charlotte was sentenced today to 51 months in prison for filing false tax returns and lying on a loan application, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Frank D. Whitney ordered Shropshire to serve 3 years under court supervision following his prison term, and to pay $582,933 as restitution to IRS and $7,749.24 to a credit union he defrauded.
U.S. Attorney Rose is joined by Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), in making today’s announcement.
According to filed court documents and today’s sentencing hearing, Malik Shropshire worked as a tax preparer and a financial advisor in the Charlotte area, and aided and assisted in the preparation of hundreds of false tax returns which were filed with the IRS. Court records show that Malik Shropshire’s sister, Nkhenge Shropshire, was the owner of “Tax Connections," a tax return preparation business also located in Charlotte. According to court records, from 2010 through 2012, Malik Shropshire conspired with his sister and others, to execute a fraudulent tax fraud scheme involving the filing of fraudulent tax returns. Court records indicate that Malik Shropshire recruited individuals to have their tax returns prepared and filed through his sister’s business and elsewhere, promising in exchange large tax refunds. Court records show that Malik Shropshire obtained the fraudulent refunds by filing tax returns that contained fraudulent information, including false Schedule C businesses, false dependents, and false refundable education credits. As a result of using the fraudulent information, court records show that the taxpayers’ tax liabilities decreased, they received larger tax refunds, and they qualified for the Earned Income Tax Credit. According to court records, the tax loss associated with the fraudulent returns is $582,933.00.
In addition to the fraudulent tax scheme, court records show that Malik Shropshire, assisted by his sister, lied on loan applications and was able to obtain a credit card and a car loan, using fake social security numbers, false income information and false employment information. According to court records, Malik Shropshire used the auto loan to purchase a Land Rover vehicle. Subsequently, he defaulted both on the auto loan, and the credit card, after he maxed out its $10,000 limit. Malik Shropshire pleaded guilty to conspiracy to defraud the IRS and to making false statements on a loan application in June 2015.
In handing down Malik Shropshire’s sentence today, Judge Whitney emphasized that this was a very serious, sophisticated crime and noted the importance of general deterrence so “would be fraudsters" would not participate in tax refund fraud schemes.
Malik Shropshire has been in federal custody since August 2015. Upon designation of a federal facility he will be transferred to the custody of the Federal Bureau of Prisons. Nkhenge Shropshire was previously sentenced for her participation in the scheme.
The investigation was handled by IRS-CI. Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Source: U.S. Department of Justice, Office of the United States Attorneys
