A Las Vegas tax preparer known as “The Money Man” has been sentenced to almost three years in federal prison for filing false tax returns for clients and obstructing the IRS.
Vernon K. Newson, 54, of Las Vegas, was convicted by a jury on 22 counts of preparation of false tax returns, one count of obstruction of the enforcement of the tax laws, and two counts of presenting a false tax return to the government.
According to court records, Newson provided payday loans, bill-paying services, DMV registration and tax return preparation.
Between the 2002 and 2006 tax years, Newson filed 22 false tax returns for 10 clients. Newson padded customers’ tax returns with false deductions and credits, invented businesses to create business losses, and inflated W-2 wages and itemized deductions.
Newson also attempted to cover up his activities by telling clients to lie to auditors and presented two other false tax returns in 2006 for “undercover” businesses that were being tracked by the IRS.
The court determined the tax loss to the government was approximately $142,949.
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