Alabama Tax Firm Indicted Over 9,000 Fake Returns

Federal prosecutors unsealed an indictment on Wednesday alleging that a Mobile tax preparation company filed thousands of fraudulent returns to collect $177 million in refunds. The case involves six defendants accused of using false deductions to inflate tax claims over a four-year period.

The investigation began as part of a joint effort led by the Justice Department’s National Fraud Enforcement Division, the Internal Revenue Service, and the FBI. Prosecutors stated that the defendants operated a scheme that abused the trust placed in tax preparers by manipulating various credits and deductions.

Jennifer Beverly, 47, is the lead defendant in the case. She owned JB Accounting Tax Service LLC, a business located on Broad Street in Mobile. The indictment charges Beverly with conspiracy to commit wire fraud and wire fraud. The other five defendants are former employees of the firm.

Among the accused is Kennedy Lawrence Stovall Winston, 42, a former University of Alabama basketball player. Winston faces conspiracy and wire fraud charges related to the tax returns. He also faces a separate federal fraud charge involving stolen Treasury checks. The other employees named in the indictment are Jadasha Bowman, 28; Solida Lucille Green, 36; Paris Lovett, also known as Paris Johnson, 30; and Shermeka Benjamin, 38.

According to the court documents, the defendants filed more than 9,000 fraudulent returns between approximately 2021 and 2024. The returns claimed $177 million in total refunds. The IRS issued $81 million of those claimed funds, according to the indictment. Prosecutors alleged that the defendants improperly claimed several types of tax benefits, including COVID-19 credits, fuel tax credits, credit repayments, estimated tax payments, and education credits.

Maisha Horton, acting special agent in charge of the IRS Criminal Investigation Division’s Atlanta Field Office, described the alleged abuse as staggering in a prepared statement. She noted that tax preparers have a responsibility to uphold the integrity of the tax system. Christopher Flowers, special agent in charge of the FBI’s Mobile Field Office, said the charges demonstrated a strong partnership among federal law enforcement agencies in identifying the extent of the fraud.

No court date has been set for the six defendants. If convicted, each defendant faces a maximum prison sentence of 20 years.