When we think of tax fraud, we often imagine cyber-criminals who steal our information without us realizing that our identity has been stolen. Hardly do we ever imagine we will meet our aggressor face-to-face. It is cases such as these that teach us to be more selective of the people we trust.
Reverend Allen D. Miles
On Monday, August 22nd, 2016, Ohio Reverend Allen D. Miles, 58, was sentenced to 13 years in prison. Miles participated in an income tax scheme disguised as a church program known to its victims as the “Obama Stimulus” Program. Just months before his sentence, Miles pleaded guilty to charges of conspiring to commit wire fraud and aggravated identity theft.
A Church Tax Program
In this elaborate four-person operation, Miles’ role was to recruit other pastors. The pastors would then collect income information from their low-income church members. The information was then forwarded to Miles’ partners to prepare and file phony tax returns. The claimants later received refunds via a Turbo Tax debit card or through a personal check from Miles. The victims weren’t aware of the $400 commission Miles and his team were keeping. Additionally, the pastors were instructed to request a $50 donation from each victim.
2,750 Tax Returns, $4.8 Million in Refunds
The crime was uncovered when some of the victims received IRS notices regarding funds due – funds that Miles received on their behalf. Others attempted to file their own tax returns but were rejected due to the fact that Miles had already filed returns with their information.
To make matters worse, the returns were rigged to receiving larger returns. The team used false employment information, income figures, and tax credits for which the claimants were not eligible. The operation was in effect as of 2010. Since then, Miles netted over $240,000. All-together, this criminal team filed approximately 2,750 false returns which resulted in $4.8 million in false refunds.
Sentencing the Criminals
One of the pastors enlisted testified against Miles in exchange for immunity. Zinara M. Highsmith, one of Miles’ partners, pled guilty and also testified against him. She only received 42 months. The third participant, Ve Soyavong, has not been sentenced yet. Craig S. Cudhea was not part of the team since 2011 when the three partners decided to form their own organization. Cudhea continued his organization, soliciting pastors nationwide up until 2015 when he committed suicide upon being prosecuted.
Protecting Yourself From Tax Fraud
Of all the different tax schemes we try to protect ourselves from, there will always be new tactics to surprise us. This is by far one of the most egregious cases in that they took advantage of people’s faith and trust. To learn how to protect yourself, here are some tips from the IRS to make sure you choose the right tax return preparer. It’s imperative that you know why your personal information is requested, and don’t give it to anyone who has no need of it. Doing so can put you in jeopardy such as what happened to the victims of this tax scheme.
Image courtesy of freedigitalphotos.net/Tuomas_Lehtinen
What if a Pastor continues to use your name when you are no longer a member and has never given you a reciept of your tithes and offering when you wete
I’m not sure what you mean about using your name if you are no longer a member. But in terms of a receipt for your tithes, they are supposed to supply this to you if you gave more than $250.00 in the year. If you did not receive one, contact them and ask for a report. If they don’t give it to you, it could be that they never actually set themselves up as a 501c3 organization (not for profit) and deductions technically aren’t tax deductible in that case. To see if the organization is registered with the IRS, see https://apps.irs.gov/app/eos/mainSearch.do?mainSearchChoice=pub78&dispatchMethod=selectSearch. I hope this information helps! Candy
People are so quick to judge others. When the bible states. In Galatians 6:1 “Brothers and sisters, if someone is caught in a sin, you who live by the spirit should restore that person gently. But watch yourselves, or you also may be tempted. But it is very obviously that this is not a Christain site. I bet you have cheated on your taxes a few times, but just haven’t been caught. Well maybe that was a little to harsh of words to use. What am saying is until you know the really truth about someone, don’t be so quick to print a lie, even if it appears to be true.
Melissa, this blog was not written to judge others. It was a statement of facts that someone was found guilty, sentenced to prison for his crimes, and an explanation of what occurred (as stated in the article, Miles pleaded guilty to charges of conspiring to commit wire fraud and aggravated identity theft). I didn’t print a lie that appears to be true. He admitted that he committed these crimes with the help of others. And for someone who says not to judge others, it’s interesting that you made a false judgment about me. I’ve never cheated on my taxes, and if anyone comes to me as a prospect and even hints they don’t want me to give accurate information in financial reports, we don’t work with them.
Candy I have correct you on that there was a guilty plea at all. He never got to testify at all. His on lawyers sold him out. He too was a victim. If the truth really told it would show the real criminals are,otherwise, they would just get a pat on the hand like Highsmith did for a lesser time. She created is the one who created, controlled and actually defrauded the government by doing false taxess. Drug several Pastors into this scam but only trapped one. He never did not one tax statement not one. She will be in 5 years or less, and probably continue her life of crime. However, someone who has never committed a crime in their live is paying the price of a habitual criminal. All because he was convinced by another Pastor Friend who introduced him to these people that he was helping people. But not of them was prosecuted. Imagine that.
NO Guilty Plea is what I meant to say.
Please excuse the types and the words used out of context. I was typing without my glasses. I did not proof before sending. Sorry.
Melissa,
Thank you for sharing the additional information. You seem to have more specific knowledge of the case compared to what was shared in the article. I know there are often times when those who are guilty don’t always get what they deserve (as you mentioned, Highsmith is probably one of them).
Someone should be trying to help this Pastor. He was a victim caught up in a situation, that have cost him everything. He had no clue that these people where using the information given to them to file false claims. Never stole any ones identity. These people contacted him and asked him to put their names on the list to get the money, because it was made to be so believable even to him. There is concert evidence that was never allow to the jury to prove it. recording was these people calling. NO ID theft. So you see the truth really have not been told in this case. Probably never will. But God knows and people are not finished paying for the wrong that have been done. We are just looking a the surface but it goes deeper.
Melissa,
If that is the case, perhaps he can show evidence to the court and say he entered a plea under duress/due to the counsel he had that as you say sold him out. As I mentioned, I don’t know all the very specific details of what may have happened. I was reporting that (according to the article) he pled guilty and was sentenced for crimes involving him and 3 others. However, it may be hard to prove that he didn’t know what the information would be used for. But I do believe God knows the truth and he will be the one to meet out final justice to those who are indeed guilty.
I do apologize for my comment to you. Please forgive me. No harm intended. Just so tired of this story being told so erroneously. People just need to know the truth. His name need to be cleared. However, if he have to sever time that he don’t deserver let him do it in peace.
Candy, people should also take in consideration the families that this kind of information affects. He have a wife who is an outstanding citizen, Children, Grandchildren and others that have to deal with life after these lies continue to float around. The people that got this money were not affected at all. Most of them testified on how it helped them pay their bills. If you could have attend the court sessions you probably would have wondered if the ID theft accusation should have been allowed at all. The people were say the money was such a help them even though we know it was wrongfully gained. None of them was ordered to pay it back nor did they choose to return it. Image that
He never enter a PLEA. That’s Why the government used the real criminals against him. Because he would not take a PLEA.
Melissa,
Yes, families are affected when loved ones are imprisoned (whether falsely or for valid reasons). I know it must be difficult to watch your husband/father/grandfather accused of a crime and have to go to prison when those who were involved seem to have very little (if any) punishment. And I’m surprised that those who received the refunds in error did not have to pay them back. So the tax dollars paid by all of us have to cover erroneous refunds instead. That doesn’t seem right either. But I guess we have no control over that either.