(Memphis) The owner of a St. Louis based Mo’ Money franchise has been indicted on conspiracy to commit tax fraud charges.
Special agents arrested Jimi Clark of Memphis Wednesday, along with four other employees.
Two of them, 26-year-old Justin Buford and 48-year-old Mary Taylor are also from Memphis.
A grand jury returned the indictment October 10th, but the case was sealed until after the arrests.
Prosecutors say the tax preparers filed returns with fake and inflated education credits.
The indictment states that out of 494 returns prepared during the 2009 tax season, 288 of them claimed the American Opportunity Tax Credit.
The indictment lists 47 returns from the 2010 tax season in which the taxpayer was not entitled to the credit, but it was listed anyway.
According to the indictment, Buford, as well as Leslie Chaney and Ray Reed of St. Louis, also claimed the credit on their personal tax returns in 2009.
In convicted, the defendants face up to five years in prison, and/or a fine of up to $250,000. Memphis based Mo’ Money Taxes has been at the center of controversy all year.
Customers began complaining about late returns and high fees in February.
Since that time, two states have filed suit against the company, the IRS has paid a visit and the company has been called up during a congressional hearing on tax fraud and identity theft.
Just a month ago, Mo’ Money Co-Founder Markey Granberry told us he was selling the business.