Recent Tax Cases Highlighted: Kratom Ka-Boom, Treed, and More

In recent tax cases across the country, individuals have been caught in various schemes to evade taxes and defraud the government. From Brooklyn to Missouri, Texas to Connecticut, these cases highlight the lengths some will go to in order to cheat the system.

In New York, Melinda Jacob, a tax preparer, has been permanently barred from preparing federal returns after pleading guilty to falsely claiming credits, deductions, and refunds for clients. Jacob prepared over 500 returns a year from 2019 through 2023, resulting in inflated refunds and reduced tax liabilities for her clients.

In Missouri, Chelli Payne was sentenced to prison for failing to pay over $1 million in employment taxes to the IRS. Payne worked at a company providing services to individuals with disabilities and kept the money collected as payroll taxes instead of sending it to the IRS.

In Texas, John L. Petrone, a businessman selling an herbal extract known as “kratom,” evaded federal taxes by not filing returns from 2014 through 2019. He caused a tax loss of over $529,000 to the IRS and was sentenced to 37 months in prison.

In Houston, Whitley Rachelle Carter was sentenced to prison for cashing stolen tax checks in a scheme with co-conspirators. Carter used fake IDs to deposit a nearly $3 million IRS refund check into a fraudulent bank account.

In Illinois, timber buyer Kenin L. Edwards underreported income totaling over $2 million, resulting in a federal tax loss of $180,626. Edwards pleaded guilty to filing a false return and was sentenced to 21 months in prison.

In North Carolina, business owner Peter Anthony Thomas failed to pay over $2.5 million in employment taxes collected from his employees. Thomas used the money for personal expenses instead of paying it to the IRS.

In Connecticut, tree service business owner Bill G. Makros pleaded guilty to tax evasion by concealing income and failing to file tax returns. Makros faces up to five years in prison for failing to pay $140,694 in taxes on over $500,000 in profits.

In another Connecticut case, commercial fisherman Brian Kobus pleaded guilty to evading income tax on over $1.4 million in fishing income. Kobus caused a tax loss of nearly $378,000 to the IRS and faces up to five years in prison.

These cases serve as a reminder that tax fraud and evasion can have serious consequences, including prison time and hefty fines. The IRS is cracking down on individuals who try to cheat the system, and these recent cases are just a few examples of the consequences individuals face when caught in tax schemes.