Man Who Created Phony Business and Filed $1.2 Million in Tax Refunds Sentenced to Federal Prison

                                                           LOS ANGELES

 A federal judge sentenced a North Hollywood man to four years in prison for his role in a tax fraud conspiracy scheme that fraudulently claimed more than $1.2 million in fraudulent tax refunds.

U.S. District Judge George H. King also ordered Antonio Jerome Cook, 37, to pay $537,309 in restitution to the IRS.

Cook pleaded guilty in October 2015 to one count of conspiracy to commit tax fraud.

“As we enter the 2016 tax season, it is important that we continue to work with

IRS criminal investigators to ensure the honesty and integrity of the tax system,” said

U.S. Attorney Eileen M. Decker. “Identifying fraudulent claims against the

government and prosecuting those responsible for illegally filing false tax returns protects all taxpayers and helps ensure the fairness of the entire system.”

According to court documents, in late 2008 or early 2009, Cook, along with two co-conspirators, developed a tax fraud scheme where defendants prepared and filed fraudulent tax returns for people.

The fraudulent returns were filed on behalf of individuals who agreed to have the defendants prepare their tax returns without knowledge of the fraud scheme along with victims whose identities were stolen.

The fraudulent tax returns indicated that the taxpayers were employed by Picaso Fashions, a business established by Cook in name only.

Evidence indicated that Picaso Fashions did not have any employees and the taxpayers were never actually employed by Picaso.

The tax returns also indicated that Picaso Fashions had withheld too much income tax for each taxpayer, and each fraudulently filed fraudulent tax returns.

The scheme related to Picaso Fashions resulted in the filing of 69 false individual federal tax returns during 2009 that claimed tax refunds totaling $621,589, according to the evidence.

In addition to Picaso Fashions, Cook and a co-conspirator independently established other companies to serve as fraudulent employers in tax schemes, according to court documents.

Specifically, Cook established at least five other companies to perpetrate similar tax fraud schemes.

For example, Cook filed an additional 72 tax returns listing a fictitious employer, Arkitek Entertainment Group, which fraudulently claimed $486,659 in refunds.