Prosecutors point to false claims in Tax Time trial

The trial in the multi-count “Tax Time” tax-fraud case has settled into a pattern of prosecutors summoning former clients of the tax-preparation business to attest to inaccuracies that boosted their income-tax returns, with defense attorneys then asking those witnesses why they didn’t notice the discrepancies before signing the documents.

Every tax return has a place for the taxpayer to sign and swear, under penalty of law, that the information submitted is true. Tax Time’s customers signed that line.

Defense attorney Mike Garner represents Lakeisha Degourville, and attorney William Kendrick represents Ken Degourville Jr. Both operated the 3551 Macon Road business Tax Time that state and local authorities raided on Nov. 17, 2014.

They are accused of making false claims to inflate tax returns they filed for a fee, defrauding the state of revenue.

Ken Degourville, 37, faces 19 counts, seven each of filing false documents and computer forgery, three of identity fraud and one each of theft and tax evasion. Lakeisha Degourville, 36, faces 14 counts, six each of filing false documents and computer forgery, and one count each of theft and tax evasion.

Among those testifying Thursday was Tangje Spellers, who told the court she used Tax Time for her 2013 returns, but never saw a profit-loss statement for a private business until state revenue agents brought it to her attention.

She did not own a business, and never told Lakeisha Degourville she did, she said.

Yet as Whitaker went over her tax return for the jury, Spellers at his direction noted claims that she had a direct-sales business, with a $3,920 profit, $2,905 in vehicle costs, $201 in advertising expenses, $3,309 for insurance, $4,019 in office expenses, $3.017 for machinery, $3,321 for maintenance, and a net loss of $18,107.

Spellers said she did not see a form with such claims when she signed her tax return.

Defense attorneys said Spellers had claimed business expenses before, on tax returns prepared by someone other than Tax Time. Whitaker countered that such expenses were related to her other deductions.

Another former customer, Kevin Davis, testified that he had no landscaping business, as was claimed on his tax return, with deductions for advertising and maintenance, and expenses for travel, meals and entertainment.

Henk Dionne testified he expected to pay taxes when he had Tax Time handle his return for 2013, but Ken Degourville told him he’d get a refund, and he did — in a check made out to “Hawk Dionne” for more than $5,000.

When he saw the amount, he called Tax Time to ask whether in fact a “Hawk Dionne” did exist, and he got that taxpayer’s refund by mistake, he said. He was told it was his check, as the Social Security number matched his, he testified.

Though a longtime worker at Pratt & Whitney, Dionne later learned from state revenue agents that his return claimed he ran a landscaping business, with expenses for advertising, insurance, vehicles, maintenance and fertilizer, plus “legal and professional services.”

His losses totaled $28,741, according to the claim. But that was nothing compared to an energy-efficient home credit claiming he spent $11 million upgrading his house. Jurors burst out laughing when they heard that, though it likely was a typo.

Dionne said the state later advised him to correct and file his taxes again, paying what he owed and repaying the inflated refund.

Defense attorneys focused on a claim of $17,000 in medical expenses for 2013. Dionne said he never discussed such expenses with Tax Time, and didn’t know where that figure came from. But he admitted in previous years he had from $9,000 to $14,000 in medical costs because of family illness.

Like other witnesses, Dionne acknowledged he signed the tax forms swearing the information was true, but said he never saw some of the claims until the state contacted him about them.

This story was originally published June 2, 2016 at 5:56 PM with the headline "Prosecutors point to false claims in Tax Time trial."