Internal Revenue Service Prosecution - Paramount Man Faces Prison For FIling False IRS Claims


A Paramount, California man, who admitted to filing a false or fraudulent claim with the Internal Revenue Service, faces up to five years in federal prison and a fine of up to $250,000 for his actions.

In his plea agreement, Nicholas Henderson, 34, admitted to filing at least 57 false or fraudulent claims for income tax refunds with the Internal Revenue Service. Henderson filed false 2001 through 2003 federal income tax returns claiming refunds which he knew the individual named as the filer of the tax return was not entitled to receive. To accomplish this, Henderson used of false Forms W2, fraudulent claims for education credits, fabricated employers, false dependent information, and claimed earned income credits to which the named filers of the returns were not entitled to create returns that resulted in refunds. In total, Henderson caused at least 57 false and fraudulent returns to be filed, claiming refunds from the Internal Revenue Service totaling at least $199,917 to which neither Henderson nor the named filer of the fraudulent income tax return was entitled.

In addition to facing a prison sentence, Henderson has agreed to forfeit to the government approximately $122,135 in cash that investigators seized from his residence and safe deposit boxes as a part of the investigation. In addition to the forfeiture of the seized cash, Henderson has agreed to make full restitution to the government for the losses his conduct caused. Henderson set forth in his plea agreement that the actual losses his scheme cost the government was at least $199,917.00.

Sentencing for Henderson is scheduled for June 4, 2007 before United States District Judge Dale S. Fischer in Los Angeles. This case is the result of an investigation conducted by agents of the Internal Revenue Service’s Criminal Investigation Division in Los Angeles.

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