Trumann Man Charged in False Tax Claims Case

MARCH 13, 2006 - Posted at 7:59 a.m. CST

LITTLE ROCK, AR - U.S. Attorney Bud Cummins says a 34-year-old Trumann man identified as Arnold Chris Parker has been indicted by a federal grand jury in Little Rock.  The indictment charges Parker with 16 counts of filing false claims against the United States.  Parker faces a maximum penalty of 80 years in prison and a fine of up to $4 million.

According to the indictment, Parker prepared income tax returns for H&R Block in Trumann in 2002 and for Jackson-Hewitt in Jonesboro in part of 2003.  He allegedly prepared false income tax returns for himself and others by creating completely false and fictitious W-2 forms.  These W-2 forms would then be submitted with electronically filed tax returns, thus generating larger refunds.

The indictment charges that in exchange for an agreement to receive a substantial portion of the anticipated tax refunds, Parker would either prepare and electronically file the income tax returns for the taxpayers, or caused the false W-2 form to be provided to others for electronic filing.  According to the indictment, Parker caused approximately 36 materially false and fraudulent tax returns to be filed with the IRS, claiming inflated tax refunds totaling more than $150,000.

The investigation was conducted by the IRS Criminal Investigation Division.