federal income taxes.
Meredith was allegedly the owner and operator of the groups. She was
also charged with two counts of false representation of a social security
number, one count of passport fraud and five counts of failing to file a
tax return. Bybee and Moore were also each charged with three counts of
failing to file a tax return.
The indictment alleges that Meredith earned $6.2 million from 1994
through 1999 as a result of the tax scams.
Their arrests were the result of field work done by the Internal
Revenue Service's Criminal Investigation unit in conjunction with the
U.S. Justice Department's Tax Division.
"Meredith misled numerous people into believing that the tax shelters
she was selling would legally keep them from having to pay income taxes,"
said Michael S. Kochmanski, special agent in charge of the Los Angeles
field office of IRS - Criminal Investigation. "Instead, many of these
people now find themselves owing back taxes, penalties and interest. The
public should be wary of anyone who says that they have a way to keep you
from having to pay income taxes."
Meredith faces a maximum 30-year prison sentence while both Bybee and
Moore face maximum 13-year terms.