ATHENS, Ga. — A Georgia tax preparer faces decades in prison after pleading guilty to wire fraud.
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The Federal Bureau of Investigation began investigating a multi-state unemployment benefit scheme during the COVID-19 pandemic.
According to court documents and statements made in a Clarke County court, FBI agents found text messages between people involved in the plot and 33-year-old Jessica Crawford, a tax preparer with Crawford Tax Services in Athens.
Officials said Crawford filed for unemployment benefits on behalf of those individuals, who had created fake businesses or submitted incorrect information to fraudulently obtain benefits. In return, Crawford received a percentage of the money.
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The Middle District of Georgia U.S. Attorney’s Office said in April 2022, Internal Revenue Service (IRS) agents conducted an undercover operation at Crawford’s business. When the undercover agent met with Crawford to prepare taxes, the 33-year-old asked if the UA did anything on the side.
At first, the UA responded no, but Crawford said that expenses could be knocked off if he did and the UA said he mowed an aunt’s lawn sometimes, to which Crawford said that was ‘good enough’, authorities said.
The DA’s office said the agent did not give any income or expenses amount but Crawford generated a Schedule C business for landscaping on the agent’s federal income tax return, based solely on their conversation.
Crawford produced a Form 1040 and filed electronically, including a fake Schedule C loss of $19,373, and claimed an earned income tax credit (EITC), a child tax credit (CTC), and qualified business income (QBI) deduction, which were affected by the phony Schedule C loss. As a result, the UA’s return claimed a fake federal income tax refund of $12,359.
The IRS completed a thorough examination of 1,261 total tax returns filed by Crawford in tax years 2020 and 2021. Of those, the IRS determined that Crawford fraudulently filed tax returns on behalf of clients which resulted in losses to the IRS of more than $3 million from falsely claimed Form 7202 credits for sick leave and family leave, tax credits and dependent care credits.
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On Friday, Crawford pleaded guilty to one count of wire fraud and one count of aiding and assisting in the preparation and presentation of false income tax returns.
She faces a maximum of 30 years in prison followed by five years of supervised release and a $1 million fine.
“Jessica Crawford lied and took advantage of funds designed to help those who were truly in need during the pandemic,” said FBI Atlanta’s Acting Special Agent in Charge Sean Burke.
Crawford will be sentenced on March 19, 2025.
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