Sentencing has been determined for a father and daughter after the two admitted to filing fraudulently inflated tax returns on behalf of their clients.
Ezra Hatcher Sr., 67, of Hephzibah, Ga., was sentenced to 24 months in prison, followed by three years of supervised release after previously pleading guilty to conspiracy to defraud the United States, according to David H. Estes, U.S. Attorney for the Southern District of Georgia. Hatcher was also ordered to pay $69,682 in restitution.
Sherry Hatcher, 42, of Augusta, Ga., previously pleaded guilty to aiding and assisting in the filing of a false tax return and was sentenced to five years of probation. She was also ordered to pay restitution in the amount of $4,141.
Both Ezra and Sherry Hatcher are permanently prohibited from preparing or filing federal tax returns for anyone other than themselves due to the sentencing, according to an emailed press release from the Department of Justice.
“Family run small businesses are the backbone of American free enterprise, and the Hatchers could have established themselves as honorable participants in the tax preparation business,” said U.S. Attorney Estes. “Instead, serial scam artist Ezra Hatcher made a business of defrauding taxpayers, and he and his daughter are being held accountable for their crimes.”
The press release goes on to address court documents and testimony that describe the IRS investigation into Ezra Hatcher and Sherry Hatcher’s tax preparation services which, between 2014 and 2018, filed 21 tax returns containing fraudulent information on behalf of seven individuals. These returns included false information relating to Schedule C expenses, income and earned income credits, resulting in the IRS issuing excess refunds amounting to nearly $75,000.
“The Hatchers abused their clients’ trust in an effort to fraudulently gain more funds,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “The sentencing is proof we are holding return preparers accountable. To help detect these schemes and avoid getting a surprise IRS audit bill, it’s important to pick an honest, transparent return preparer and not the one who promises a big refund. Always review your return with your return preparer and ask questions.”
Ezra Hatcher previously served a federal prison sentence for preparing false income tax returns after pleading guilty in 1998.
This case was investigated by IRS-Criminal Investigations and prosecuted for the United States by Assistant U.S. Attorneys Henry W. Syms Jr. and Jennifer A Stanley.
