A federal jury in Albany, Georgia, has found Reginald Knight guilty of making and subscribing a false tax return. The 52-year-old resident of Arlington, Georgia, was convicted on February 19 after a two-day trial. This marks Knight's second federal fraud conviction related to tax crimes.
Knight faces a potential sentence of up to three years in prison, followed by three years of supervised release and a $100,000 fine. Chief U.S. District Judge Leslie Abrams Gardner is overseeing the case, with sentencing yet to be scheduled.
Acting U.S. Attorney C. Shanelle Booker commented on the case: "The defendant was claiming millions in refunds for a business that never generated income or incurred any losses, fabricating these claims in yet another attempt by the defendant to steal from taxpayers." Booker expressed gratitude towards IRS investigators for their collaboration in bringing Knight to justice.
Assistant Special Agent in Charge Lisa Fontanette from the IRS Criminal Investigation's Atlanta Field Office stated: "The guilty verdict serves as a notice to unscrupulous tax preparers that filing fraudulent tax returns will lead them to a criminal court date."
Court documents revealed that Knight filed a fraudulent tax return on March 13, 2018, falsely claiming over $3 million in wages and over $2 million in withholdings among other fabricated financials. The IRS did not issue the requested refund but had previously issued a refund for tax year 2016 amounting to $745,953 based on similar false claims. Knight used part of this refund for personal expenses including home construction and investment transfers.
Knight's previous conviction occurred in the Southern District of Florida for conspiracy and false claims related to tax refunds in 2005, resulting in concurrent five-month prison sentences.
The ongoing investigation is being conducted by the IRS Criminal Division and IRS Special Enforcement Program. Assistant U.S. Attorney Veronica Hansis is prosecuting the case.