NEW YORK
A retired former New York City corrections officer plead guilty in being a part of a scheme to submit false tax returns to get more than $3.4 million, officials announced last week.
Rodney Chestnut plead guilty to count one of the pending indictment, which alleged that between 2008 and 2012, he participated in a scheme to submit false tax returns seeking fraudulent income tax refunds, officials said.
According to the indictment, Chestnut worked with Clive Henry, a former IRS employee in the business of preparing tax returns, and another unnamed individual teamed up to recruit clients to participate in this IRS scam.
The indictment alleged that Chestnut, Henry and the other individual collected fees from clients based on the percentage of refunds received.
In 2013, a federal court permanently enjoined Chestnut from promoting a tax fraud scheme involving fraudulent Forms 1099-OID and from preparing tax returns for anyone other than himself, the indictment alleges.
U.S. District Judge Kiyo A. Matsumoto scheduled sentencing for May 12.
Chestnut faces up to five years in prison and a fine of up to $250,000, or twice the loss from the offense. Henry pleaded guilty to conspiracy to defraud the United States on Nov. 17. His sentencing is set for March 23.