KANSAS CITY, Mo. (CN) – Brother Jerry Love (Gerald Poynter II) ran a tax-fraud scheme “for himself and other taxpayers” that “resulted in claims of more than $64 million in fraudulent refunds,” and had ill-gotten gains sent to Jerry Love Ministries, federal prosecutors say.
Prosecutors want Brother Jerry, of Kansas City and Blue Springs, Mo., enjoined from filling out tax forms for other people – and for himself – particularly through ruses include 1099 forms.
“This scheme is lucrative for Poynter,” prosecutors say. “In exchange for Poynter’s fraudulent ‘services,’ his customers typically paid a fee of fifteen percent of any refund they obtained. For a $200,000 refund, Poynter’s fee would be about $30,000.”
The IRS found at least 165 fraudulent returns Poynter prepared, according to the complaint. They add: “It is yet unknown how many fraudulent income tax returns he aided and abetted, and may be continuing to aid and abet, through his network of ‘affiliates’ or ‘branch managers.'”
Poynter apparently didn’t mess around with small stuff. For one couple in Temecula, Calif., prosecutors say, he prepared a bogus 1040 that reported “a grossly inflated taxable income of $1,373,447,” from which the federal government allegedly had held $1,328,617.
The Temecula couple requested a refund of $875,705, and the IRS sent it to them, “erroneously.” The husband then wired $118,000 “to the bank account of Gerald A. Poynter, DBA Jerry Love Ministries,” according to the complaint.
“Poynter has promoted, and may be continuing to promote, an abusive tax scheme that uses fraudulent information returns Forms 1099-OID and Forms 1099-A, and individual income tax returns to generate outlandish and false claims for refunds by his customers,” the complaint states.
“The returns that Poynter has prepared, or has assisted in preparing, fabricate the amount of tax withheld on behalf of his customers. The fabricated tax withholding reported to the IRS on his customers’ behalf results in fraudulent refund claims by his customers in amounts as large as $5.3 million.”
Poynter also did business as Heartland Investment Group, Sharper Solutions, Sharper Solutions Family Foundation, Sharper Solutions Foundation, Blackbelt Tax Services, Sharper Solutions Tax Services, Etree, Luckytown, AKKA, Jerry Love Ministries, and The Dojo, all of which are named as defendants.