On November 30, 2022, in the District of Nevada, King Isaac Umoren was sentenced to 13 years and three months in prison for filing false tax returns, aggravated identity theft, wire fraud, money laundering, and impersonating an officer or employee of the United States. In addition to the term of imprisonment, Umoren will serve three years of supervised release and pay $5,075,590 in restitution to the United States and the other victims of his fraud schemes.
According to court documents, Umoren owned and operated Universal Tax Services (UTS), a tax preparation business based in Las Vegas. From 2012 through 2016, Umoren prepared and filed with the IRS tax returns for clients that included false deductions and fictitious businesses in an effort to generate larger refunds than the clients were entitled to receive. At times, Umoren used the names and the IRS Preparer Tax Identification Numbers (PTINs) of others without their knowledge or consent, making it seem as if they had prepared the false returns. Umoren also required his clients to use a refund anticipation check program, which he then utilized to secretly take fees out of the clients’ tax refunds without their knowledge. Umoren also posed as a United States Government agent wearing a fake badge and tactical gear, and drove to a client’s house with police lights attached to his vehicle to demand payment of a tax preparation fee.
Also, in 2016, Umoren attempted to sell UTS. However, to induce potential buyers to purchase the company at an inflated price, Umoren provided fraudulent documents, including forged bank statements, fabricated return preparation fee reports, false personal tax returns, and other tax forms that had never actually been filed with the IRS, as well as the stolen tax and personal identifying information of approximately 12,000 taxpayers who were not clients. Umoren succeeded in inducing a victim to purchase the business for approximately $3,800,000. He used the sale proceeds to purchase land and an automobile.
Source: The facts in this case narrative come from the following publicly available documents: D. Nev., Judgment, Filed Dec. 12, 2022; D. Nev., Judgment, Filed Dec. 13, 2022; and Department of Justice press release dated Dec. 1, 2022.