February 22, 2016

The Justice Department filed a lawsuit asking a federal district court in Houston, Texas, to permanently bar two men from preparing false tax returns. The defendants named in the lawsuit are John E. Carter, individually and doing business as Midwestern Financial Group Inc., and Sulayman Mamadou Jarra, individually and doing business as African Art Appraisal Services. According to the complaint, Carter promoted a tax evasion scheme to his clients, telling them they could reduce their federal tax liability by supposedly donating African tribal art to an educational institution or museum. The complaint states that Carter provided his clients with an appraisal by Jarra that substantially overvalued the art, and that for many of the returns, the signature was forged on the Internal Revenue Service form where the institution purportedly acknowledged receipt of the art. DOJ

Tagged in: Tax Credit and Deduction Fraud, Tax Fraud,