Anthony Pendleton ran Payless Tax Services of Inglewood, California. Mr. Pendleton allegedly had an interesting way to ensure that his clients got refunds: He allegedly invented employers for his clients, generated phony W-2s, and fabricated educational expenses. It’s a trifecta of trouble, and it’s surprising that a former IRS employee wouldn’t realize that phony W-2s would certainly be investigated. Mr. Pendleton was arrested on charges of conspiring to defraud the government on claims (for tax refunds). Also under indictment but not yet arrested are two employees of Payless, Christopher Michael Edwards, Sr., and Asha Delilah.
IRS special agents interviewed found 21 witnesses (or almost certainly, clients of Payless) who hadn’t worked for the employers noted on their returns. The IRS also found eight ‘clients’ who, “…disclaimed any knowledge that Payless Tax Services and defendants Pendleton, Edwards, and Lenard were filing tax returns on their behalf with the IRS and stated that did not sign any of the documents relevant to the investigation, indicating that the defendants had stolen their identities.”
The defendants are alleged to have filed 185 false claims totaling $609,000. If found guilty, they’re looking at significant stays at ClubFed. Not surprisingly, when the Associated Press called Payless, “Staff at Payless could not be reached for comment, as the service’s phone had been disconnected.”
AP News Story
Government Press Release
Tags: BozoTaxPreparer