COLUMBIA, S.C. (WCBD) — A Lowcountry man is facing prison time after being convicted of filing fraudulent income tax returns.
A judge sentenced Stacy B. Middleton, 47, of Goose Creek to 41 months in prison and one year of supervised release.
According to court documents and in statements made during court hearings, Middleton owned and operated MBM Tax & Accounting Services, LLC in Charleston.
For calendar years 2009, 2010, and 2011, Middleton prepared and electronically filed more than 1,300 false and fraudulent income tax returns for his clients without their knowledge in order to increase their refunds, according to United States Attorney Beth Drake.
We’re told the income tax returns contained overstated, duplicated or fake deductions, fictitious Schedules C to maximize Earned Income Tax Credits, fabricated expenses for Schedules A, C and E, fraudulent refundable credits, and fictitious Forms 1099.
Middleton admitted that his scheme caused a tax loss of $3,500,000.