{"id":20008,"date":"2016-02-01T19:13:38","date_gmt":"2016-02-02T03:13:38","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=20008"},"modified":"2016-02-01T19:13:38","modified_gmt":"2016-02-02T03:13:38","slug":"20008-2","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=20008","title":{"rendered":"Couple Arrested for Tax Scam, Passing False “Checks” to Pay Off Debts"},"content":{"rendered":"

LOS ANGELES<\/strong><\/span><\/p>\n

\n

\"IRS\"Law enforcement arrested two Hermosa Beach residents after being indicted by a federal grand jury on numerous charges including passing bogus checks and bonds as a way to pay off debt for themselves and others, according to authorities.<\/span><\/p>\n

The two were charged with a scam to defraud the Internal Revenue Service, officials said.<\/span><\/p>\n

Sean David Morton<\/strong>, 58, and his wife, Melissa Ann Morton,<\/strong> 50, were named in a 56-count superseding indictment that was returned by a grand jury on January 27.<\/span><\/p>\n

The couple was arrested by special agents with IRS – Criminal Investigation in San Pedro Sunday morning after disembarking from a \u201cConspira-Sea Cruise.\u201d<\/span><\/p>\n

If they are convicted of the charges, Sean David Morton is facing up to 650 years in federal prison, and Melissa Morton is facing up to 625 years, according to officials.<\/span><\/p>\n

According to the superseding indictment, Sean David Morton filed a series of false income tax returns for the years 2005 and 2010 that sought millions of dollars in refunds. Melissa Morton allegedly filed several false tax returns for the year 2007.<\/span><\/p>\n

The couple \u201ccaused multiple copies and multiple versions of their income tax returns to be submitted to various IRS service centers throughout the United States in 2009 and 2010,\u201d according to the indictment, which alleges they attached false Forms 1099-OID to support their claims for refunds.<\/span><\/p>\n

The indictment specifically alleges that Sean David Morton filed a false 2006 income tax return 2010 that requested a refund of $2.8 million and that in 2012 he filed a document that sought that for tax refund of $1.5 million for 2006.<\/span><\/p>\n

In relation to the scheme, the indictment alleges that Sean David Morton on multiple occasions submitted to the IRS documents he called \u201cCoupon for Setoff, Settlement, and Closure\u201d in the amounts of $5.3 million and $8,429,763. <\/span><\/p>\n

\u201cThese fictitious financial instruments were a purported bond in exchange for the refunds they sought from the IRS,\u201d according to the indictment.<\/span><\/p>\n

\u201cThose who try to defraud the tax system often try to use complicated \u2018legal\u2019 filings to hide their true goal \u2013 stealing money paid by other taxpayers,\u201d said U.S. Attorney Eileen M. Decker.<\/strong> \u201cIRS agents and federal prosecutors have the tools to investigate and prosecute these sophisticated schemes, which undermine the entire tax system and ultimately victimize law-abiding taxpayers.\u201d<\/span><\/p>\n

Melissa Morton allegedly presented to the IRS in 2010 a \u201cCoupon for Setoff, Settlement, and Closure\u201d in the amount of $44,450 as a purported bond in exchange for a $14,450 refund that she sought.<\/span><\/p>\n

And, in 2013, both defendants allegedly gave the IRS two \u201cNon-Negotiable Discharging Bond and Indemnity\u201d in the amounts of $10 million for Sean David Morton and $600,000 for Melissa Morton.<\/span><\/p>\n

In relation to the tax returns and other documents submitted to the IRS, the Mortons are each charged with one count of conspiracy to defraud the United States and two counts of making false claims to the United States.<\/span><\/p>\n

The indictment also charges Sean David Morton and Melissa Morton each with 24 counts of presenting false and fictitious instruments and documents \u2013 specifically items called \u201cNon-Negotiable Discharging Bond and Indemnity\u201d \u2013 which purported to be actual securities and financial instruments issued under the authority of the United States.<\/span><\/p>\n

These documents were submitted to the IRS, the California Franchise Tax Board, banks, mortgage companies, student loan companies, and county tax collectors, supposedly as a means to pay off debt.<\/span><\/p>\n

Melissa Ann Morton was charged with 25 counts of presenting or passing these documents. The Mortons allegedly also assisted others in presenting these false and fictitious instruments in amounts as high as $1.5 million.<\/span><\/p>\n

\u201cDriven by insatiable greed and a blatant disregard for the tax code, Mr. and Mrs. Morton have a long history of allegedly filing bogus tax returns and fictitious instruments claiming fraudulent refunds,\u201d stated Erick Martinez, Special Agent in Charge of the IRS – Criminal Investigation. <\/strong><\/span><\/p>\n

\u201cPeople who create elaborate schemes that have no purpose other than to defraud the IRS run the very high risk of prosecution.\u201d<\/span><\/p>\n

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.<\/span><\/p>\n

The investigation into the Mortons was conducted by IRS – Criminal Investigation.<\/span><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

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