May 17, 2016

Two brothers were sentenced to prison in the U.S. District Court for the District of Maryland after pleading guilty in January for perpetrating a scheme in which they filed 46 fraudulent income tax returns seeking refunds in excess of $224 million, announced the Justice Department’s Tax Division. Sean and Eric Gallman were each ordered to pay restitution to the IRS in the amount of $16,512,492. According to evidence presented by the government, the Gallmans established trusts and business entities and used mailboxes at numerous private commercial postal carrier stores in Maryland and North Carolina as the addresses for the trusts and business entities. The defendants, acting as trustees and agents, mailed fraudulent tax returns to the IRS in the names of the trusts and businesses requesting refunds. DOJ

Tagged in: Tax Fraud,