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Federal judge sentences four in tax fraud(The Valdosta Daily Times (Valdosta, Georgia) Via Acquire Media NewsEdge) Feb. 28--VALDOSTA -- The leaders of a scheme to defraud the Internal Revenue Service were sentenced in federal court Thursday. Pamela Hughes, Clinton Hughes, Robin Bennett and Rodger Bennett were sentenced before U.S. District Court Judge W. Louis Sands in U.S. District Court in Albany for their participation in a fraud scheme involving the filing of fraudulent claims for refund based on fictitious diesel fuel tax credits. After entering a plea of guilty to conspiracy to file false claims with the government, Pamela Hughes was sentenced to 33 months in prison and ordered to pay restitution in the amount of $3,969,831.73, according to the U.S. Attorney's Office. Her husband, Clinton, who pleaded guilty to the same charge, was sentenced to 48 months in prison and ordered to pay restitution to the IRS for $3,969,831.73, according to court documents. After entering her plea of guilty to conspiracy to file false claims with the government and filing false tax returns with the IRS in 2001, 2002 and 2003, Robin Bennett was sentenced to 12 months in prison and ordered to pay restitution of $219,459.87, according to the U.S. Attorney's Office; Rodger Bennett, who pleaded guilty for the same charges, was sentenced to 12 months in prison and ordered to pay restitution of $219,459.87. The four defendants were the last of 11 people sentenced for their involvement in the conspiracy. According to her plea agreement papers, Pamela Hughes admitted that she and her husband prepared false and fictitious tax returns using the business names of Pam Hughes Tax Service, C&P Enterprises and Ace between the years of 1998 and 2003. During this time, Hughes entered into an agreement with 10 co-conspirators to participate in a scheme to obtain tax refunds through filing tax returns and related forms for the tax years 1998, 1999, 2000, 2001, 2002 and 2003. In the false returns, Hughes allowed the co-conspirators to claim fraudulent fuel tax credits on fuel that was never really purchased, according to court records. The alleged co-conspirators, all of whom were associated with logging businesses, reportedly supplied Hughes with false fuel invoices and driving logs. In several instances, Hughes also allowed the claim of non-existent logging businesses to personally reap and help others reap fraudulent fuel tax credits. During the five years Hughes reportedly deceived the federal government, she received tax refunds that ranged from $37,049 to $151,149. Co-conspirators also received tax refunds that ranged from $34,880 to $174,647. In all, the amount of claims filed totaled $5,193,860, according to court records. To see more of The Valdosta Daily Times, or to subscribe to the newspaper, go to http://www.valdostadailytimes.com/. Copyright (c) 2009, The Valdosta Daily Times, Ga. Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |