Preparers Found Guilty of Filing Fake Tax Returns

Two Orange County men were convicted by a federal jury Thursday of using their tax preparation business to file phony tax returns that generated $200,000 in fraudulent refunds.

Timothy Lewis, 36, and Bilal Rabah, 57, both of Santa Ana, were found guilty of conspiracy to prepare and file false tax returns, and preparing and filing fraudulent returns.

The two men ran a low-cost tax return mill called Community Cash Circulation Connection in Los Angeles for about six months in 1992 and 1993, said Asst. U.S. Atty. Maurice M. Suh.

Targeting women receiving government assistance and collecting $50 to $100 per return, Suh said, the pair filed hundreds of returns “making up information without the clients’ knowledge.”

Often, he said, the clients signed blank forms and paid part of their fees up front. The pair typically took the rest of their fees from the returns, many of which were directed to their business, he said. When the Internal Revenue Service halted the refunds, he said, the two men kept the partial preparation fees.

Evidence at trial also showed that Lewis and Rabah both filed tax returns for themselves that claimed nonexistent children as dependents.

“Lewis testified that he still had time to substantiate his claim because he thought his girlfriend might be pregnant,” Suh said.

Rabah faces a maximum sentence of 25 years in prison and a $1.25-million fine, while Lewis faces a maximum of 20 years and a $1-million fine.

U.S. District Judge James M. Ideman scheduled sentencing for April 28.