A Richmond County man has been sentenced to federal prison for operating a fraudulent “ghost” tax preparation business in Augusta, Georgia. Allen Brown, 41, received a sentence of 46 months after pleading guilty to wire fraud conspiracy. In addition to the prison term, U.S. District Court Judge J. Randal Hall ordered Brown to pay $1,003,631 in restitution and serve three years of supervised release following his incarceration. There is no parole in the federal system.
Court documents show that during 2022 and 2023, Brown ran the unregistered tax preparation operation from multiple locations in Augusta, including an office at 1850 Gordon Highway, Suite C, a church, and his own residence. As a “ghost” preparer, he failed to identify himself as required on federal tax returns prepared for clients. Investigators found that Brown and others working with him fabricated income and deductions on behalf of clients to maximize their refunds and charged fees based on a percentage of those refunds.
Brown offered clients two filing options: the “Standard” option typically resulted in fraudulent refunds ranging from $2,000 to $9,000; the “I’m Not Scared” option produced larger fraudulent refunds between $14,000 and $30,000 by falsely claiming credits such as Fuel Tax Credits and reporting inaccurate expenses. Clients were not given copies of their tax returns or reviews before electronic submission.
In total, 63 false federal income tax returns were filed through this scheme, resulting in over $1 million in improper refunds issued by the U.S. Department of Treasury.
“Tax preparers have a responsibility to accurately prepare tax returns on behalf of their clients. Brown undermined the American tax system and the trust of taxpayers relying on his expertise,” said U.S. Attorney Heap. “The sentence imposed by the Court reflects the serious nature of Brown’s conduct. The criminal tax laws are designed to protect the integrity of the nation’s tax system and to obtain and preserve funds needed for public services. The United States Attorney’s Office for the Southern District of Georgia works closely with our partners at IRS Criminal Investigation to protect the law-abiding American public and the treasury by stopping this fraud.”
“Every year around tax season, ghost tax preparers like Allen Brown and other unscrupulous preparers open up shop to take advantage of unsuspecting taxpayers by convincing them into taking credits and benefits for which they don’t qualify,” said Special Agent in Charge Demetrius Hardeman of IRS Criminal Investigation’s Atlanta Field Office. “IRS Criminal Investigation special agents are working to protect taxpayers from these unethical tax preparers by investigating and holding them accountable.”
The Internal Revenue Service’s Criminal Investigation division led the investigation into this case. Assistant U.S. Attorney George J.C. Jacobs III prosecuted it for the United States.
For further information or questions regarding this case contact the U.S. Attorney’s Office at (912) 652-4422.
