An Arizona man, Richard Paul Belles, was sentenced to 12 months and one day in federal prison by Judge Susan R. Bolton. Belles was also ordered to pay restitution to the Internal Revenue Service in the amount of $141,115.26. On October 15, 2012, Belles pleaded guilty to one count of Fraud and False Statements in violation of 26 U.S.C. Section 7206(1).
According to his plea agreement, Belles filed his 2008 U.S. Individual Income Tax Return (Form 1040) with the Internal Revenue Service and falsely reported that the government had already withheld $513,000 in federal income tax. This resulted in a requested refund of $363,831. Belles obtained the $513,000 amount from a false Form 1099-OID that was submitted with the tax return and filled out by Belles. Belles spent $149,649.73 of the $363,831 refund before the remaining amount was seized by the IRS.
According to the sentencing memorandum, Belles spent the ill-gotten proceeds on three different vehicles and person living expenses. Belles filed three fraudulent tax returns with an intended harm to the government in excess of $1,400,000.
“Don’t be fooled into thinking there is a secret formula to get money from the government. Participation in a fraudulent tax refund scheme is the same thing as stealing from the United States Treasury. In this case, Mr. Belles received 12 months in prison for his actions” said Gabriel Grchan, Acting Special Agent in Charge of Internal Revenue Service Criminal Investigation, Phoenix Field Office.
The investigation was conducted by the Internal Revenue Service Criminal Investigation division.