Two Florida men were sentenced today for their roles in a large-scale tax fraud scheme known as the “Note Program,” which involved submitting fraudulent tax returns to the Internal Revenue Service (IRS) for clients and seeking millions of dollars in refunds based on false claims of income tax withholdings.
Jasen Harvey, 45, of Tampa, was sentenced to 48 months (4 years) in federal prison, while Christopher Johnson, 42, of Orlando, received a 37-month prison sentence. Both men had previously pleaded guilty to conspiring to defraud the United States by participating in the scheme, which took place between 2015 and 2018.
Scheme Involved Falsified Tax Returns and Phantom Withholdings
According to court documents, Harvey and Johnson, along with other co-conspirators, developed and promoted the fraudulent “Note Program” to clients. The scheme involved the preparation of false tax returns that claimed substantial, but nonexistent, income tax withholdings had been paid on behalf of the clients. These fabricated claims enabled the defendants to request large tax refunds from the IRS, which were then paid out to the fraudsters.
The conspirators charged clients fees for preparing the fraudulent returns and required the clients to share a portion of the illegal refunds once they were received from the IRS.
Over $3 Million in Fraudulent Refunds Claimed
Through this fraudulent operation, the defendants collectively claimed over $3 million in tax refunds on behalf of their clients. The IRS ultimately paid out approximately $1.5 million in refunds before the scheme was uncovered.
In addition to their prison sentences, U.S. District Judge Roy B. Dalton Jr. for the Middle District of Florida ordered both men to pay significant restitution amounts to the U.S. Treasury. Christopher Johnson was ordered to pay $864,117.42 in restitution, while Jasen Harvey was ordered to pay $785,858.42.
Supervised Release Following Prison Terms
In addition to their prison sentences, both men were sentenced to three years of supervised release, during which they will be monitored by federal authorities as they reintegrate into society. The terms of supervised release typically include regular check-ins with a probation officer, employment requirements, and restrictions on certain activities.
Co-Defendant Set to Be Sentenced in 2025
The fraud case also involves a third co-defendant, Arthur Grimes, who is scheduled for sentencing on January 13, 2025. Grimes, who was also involved in promoting the fraudulent tax returns, will face the court for his role in the scheme at that time.
Authorities Continue to Combat Tax Fraud
This case highlights ongoing efforts by the Department of Justice and the IRS to combat tax fraud schemes that attempt to siphon off funds from the U.S. government. The convictions of Harvey and Johnson serve as a reminder of the serious legal consequences individuals face when engaging in financial crimes, particularly those that involve falsifying tax records and defrauding the federal government.
The case was investigated by the IRS Criminal Investigation Division, and the prosecution was handled by the U.S. Attorney’s Office for the Middle District of Florida.
Conclusion
The sentences handed down today underscore the serious penalties associated with tax fraud schemes. Harvey and Johnson will now serve time behind bars, and both will be required to pay restitution as part of their efforts to make amends for their crimes. Meanwhile, authorities continue to pursue other individuals involved in similar fraudulent schemes to ensure that justice is served.
For further updates on this case and other federal investigations, stay tuned to our news channels.
