Businessman Constructs False Tax Returns for Hefty Refunds

Shawn Smith, a Chicago business owner, was  sentenced to three years in prison for filing false tax returns.

 

Smith created several companies, including a construction business, that did very little work, but provided him with the opportunity to create false W2s that falsely listed him as earning millions of dollars in wages.

 

In total, Smith filed eight false tax returns seeking 3.1 million dollars in tax refunds by claiming Schedule E losses that greatly reduced his income.

 

The IRS paid Smith $815,000 in fraudulent returns. He used the money to fund a lavish lifestyle that included purchasing a trailer for his truck, several BMWs, expensive dinners, and shopping sprees at luxury retailers.