Like his dad, Gary man to admit to tax fraud
Teresa Auch Schultz firstname.lastname@example.org June 5, 2014 5:38PM
Updated: July 7, 2014 6:31AM
A Gary man, whose father is serving a federal prison term for mortgage and tax fraud, intends to plead guilty to being involved himself in an income tax fraud scheme.
Jerry Haymon Jr., 28, of Gary, was charged Thursday with conspiring to defraud the U.S. government in 2009 and will plead guilty to referring clients to a Lake Station tax preparer whom he knew was bilking the government by filing false tax returns, according to Haymon’s plea agreement with federal prosecutors.
The tax preparer, Michael Nash, recently pleaded guilty to falsifying returns to increase the tax refunds due his clients and depositing the extra money into a bank account that he controlled.
In his plea agreement, Haymon says he referred at least six people to Nash — who paid him about $1,000 for each one — and also allowed Nash to use his bank account for some of the refund deposits, which the two would split.
The IRS refunded $20,349 to the six clients, although Nash admitted that his larger scheme took in anywhere from $400,000 to $1 million, according to federal court records.
Haymon’s plea hearing had not been scheduled as of Thursday afternoon.
Haymon’s father, who shares the same name, pleaded guilty in November 2011 to wire fraud and, in a separate case, to tax fraud and is serving a 41-month sentence.
The wire fraud case involved a $200,000 mortgage scheme where Haymon’s father and other defendants used fake information to sell four houses for tens of thousands of dollars more than they were worth — pocketing the extra money by filing liens against the homes for work that was never done, according to the government.
It said one of the houses was in the district of Gary Councilman Ronier Scott, who gave the elder Haymon $75,000 in city funds to renovate and sell it as part of a city program, but Haymon couldn’t find a buyer and made it part of the mortgage fraud scheme.
Haymon’s father also admitted to taking about $1 million from a charity he ran and not reporting the money on his income tax returns.