KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that three Kansas City, Mo., tax preparers have been indicted by a federal grand jury for their roles in a tax fraud conspiracy.
Azareia Derseh, 36, his brother, Ananeia Derseh, 39, and Quashanda King, 36, all of Kansas City, were charged in a 23-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, March 7, 2017. That indictment was unsealed and made public following King’s arrest and initial court appearance on Thursday, March 9, 2017.
The federal indictment alleges that Azareia Derseh, Ananeia Derseh and King participated in a conspiracy to prepare fraudulent tax returns from Jan. 30, 2013, to March 5, 2015. Azareia Derseh owned and operated a tax preparation business in the Kansas City metropolitan area, under the names Instant Tax Service and Speedy Tax Service, at various locations. Ananiea was the manager in charge of one of the offices and King was the manager in charge of another office.
According to the indictment, conspirators prepared at least 47 false federal income tax returns, which contained materially false and fraudulent items, for at least 37 clients for tax years 2012, 2013 and 2014. The tax loss based upon the conduct in the conspiracy was $108,621.
Conspirators most often inserted a false Schedule C, the indictment says, wherein the client reported to carry out a business at a modest profit. Often, the return preparers allegedly inflated the gross receipts reported on the Schedule C. Sometimes, the indictment says, the return preparers completely fabricated a Schedule C, reporting income from a fictitious business. The return preparers allegedly added false income to clients’ returns in order to maximize the refundable credits and fraudulently increase clients’ refunds. By including these and other fraudulent items on their client’s tax returns, conspirators allegedly manufactured substantial refunds that the clients would not have been entitled to if the returns had been accurately prepared.
In addition to the conspiracy, the indictment charges Ananeia Derseh with 11 counts of aiding and assisting in the preparation and filing of false and fraudulent tax returns. Azareia Derseh is also charged with four counts of aiding and assisting in the preparation and filing of false and fraudulent tax returns. King is also charged with seven counts of aiding and assisting in the preparation and filing of false and fraudulent tax returns.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation.