Kansas City Tax Preparation Scam Closed Down By Federal Court

by Joel Hendon⁽¹⁷⁰⁾ Red Star

http://hebronics.org/index.html

Gerald A. Poynter II, doing business as Jerry Love Ministries in Kansas City Missouri, has been permanently barred from preparing income tax returns and from promoting a fraudulent tax scam according to a press release by the U.s. Department of Justice on March 28, 2011.

Here is a quote from the press release that gives a broad, though not detailed, explanation of the scam being perpetrated by the Jerry Love Ministries.

The court order states that Poynter’s scheme is a version of the repeatedly rejected “redemption” scheme used by tax defiers to evade tax obligations or obtain wrongful financial benefits. According to the court, proponents of that scheme claim that the U.S. government is in possession of money rightfully owned by taxpayers. The court found that Poynter told his customers that he could recover that money for them for a fee, and that he then generated fraudulent IRS forms to support false tax refund claims on their behalf. (DOJ press release-Monday, March 28, 2011)

Court records, for civil case # 10-1048 from the United States District Court for the Western District of Missouri gives a detailed account of the charges brought against this defendant. To read the entire court record, Click Here.

Other sources reveal that federal prosecutors reported a very lucrative business engaged in by the accused. He typically charged his clients 15% of any refunds and in many cases the refunds were huge.

One example was that of a couple from Temecula, California where Poynter filled out a “bogus 1040 form with an over-inflated taxable income of $1,373,447 from which the government had allegedly withheld $1,328,617. The couple claimed a refund of $875,705. When the IRS sent it to them, the husband wired $118,000 to Poynter’s Jerry Love Ministries bank account.

"The returns that Poynter has prepared, or has assisted in preparing, fabricate the amount of tax withheld on behalf of his customers. The fabricated tax withholding reported to the IRS on his customers' behalf results in fraudulent refund claims by his customers in amounts as large as $5.3 million."

Poynter also did business as Heartland Investment Group, Sharper Solutions, Sharper Solutions Family Foundation, Sharper Solutions Foundation, Blackbelt Tax Services, Sharper Solutions Tax Services, Etree, Luckytown, AKKA, Jerry Love Ministries, and The Dojo, all of which are named as defendants.(Courthouse News Service: October 27, 2010)

Article submitted Tuesday, April 05, 2011 & read 99 times.

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