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Ga. man pleads guilty to refund scam

Jan. 17, 2013 at 11:01 AM

MARIETTA, Ga., Jan. 17 (UPI) -- A Georgia man has pleaded guilty to cheating the Internal Revenue Service out of $2.8 million by filing false claims for income tax refunds.

Arnold Tobias Gervais, 34, pleaded guilty in U.S. District Court Wednesday to filing the false claims, The Atlanta Journal-Constitution reported.

Prosecutors said Gervais filed claims for refunds of more than $3.4 million and was able to persuade the IRS into giving him $2.8 million.

The IRS was able to recover $2.2 million from Gervais' accounts.

Gervais served time in prison in 2009 for having his wife file a fake income tax refund claim for more than $800,000. He also filed fraudulent returns for 2004, 2005, 2006, 2007 and 2009, prosecutors said.

The refund claims were for false wages and federal tax withholdings from a fake company called "Safety Shoes & More Inc.," that was based out of Rome, Ga.

Gervais now faces up to five years in federal prison and a fine of up to $250,000. He is scheduled to be sentenced on March 28.

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