RICHMOND, Va. (WRIC/WAVY) — Two men have pleaded guilty to federal fraud charges in connection to a tax scheme based out of Richmond.
Jeremy Blanchard, 35, and Erik Pittman, 35, both of Memphis, Tennessee, pleaded guilty to charges of conspiracy to defraud the United States and one count of aiding and assisting in the preparation of a false tax return.
WAVY News 10 looked in to Mo’ Money in 2012, after several clients contacted 10 On Your Side looking for answers. We confronted the owners of the business at their headquarters in Tennessee.
A statement of facts filed with the plea agreement states that Blanchard and Pittman, along with others, prepared multiple false tax returns for the 2011 tax year for customers of their tax return business, ‘Mo Money Taxes.’
Blanchard, who pleaded guilty Wednesday, and Pittman, who pleaded guilty Thursday, were preparers at ‘Mo Money Taxes,’ which operated three locations in Richmond.
They also had six locations in the Hampton Roads area.
Prosecutors say Blanchard and Pittman admitted that they created and inflated fictitious and fraudulent tax credits to claim tax refunds that customers weren’t entitled to receive.
As part of their guilty pleas, Blanchard and Pittman also admitted that their conduct caused a loss to the Internal Revenue Service (IRS) of more than $250,000, but less than $550,000.
The two men each face a maximum penalty of a total of eight years in prison and a $500,000 fine when sentenced on June 8.
Tune in to WAVY News 10 at 4 p.m. for the latest on this developing news.