The U.S. Attorney's Office for the Western District of Tennessee joins DOJ Fraud Division, IRS, and IRS-CI in National Tax Enforcement Surge Exposing More Than $490M in Tax Fraud
Summary
The U.S. Attorney's Office for the Western District of Tennessee announced its tax fraud cases as part of the Justice Department's first-ever National Tax Enforcement Surge, which the release says brought prosecutorial actions against 76 defendants with an estimated intended loss of revenue of more than $490,000,000. Lynnette Hogue, 45, of Memphis, pleaded guilty on October 13, 2026 to aiding a false tax return and failing to file, with a $4.1 million loss to the IRS. Rebecca Gilley, 41, of Memphis, was sentenced on October 8, 2026 to 30 months for false client returns that sought more than $9.25 million in sick and family leave credits, and was ordered to pay $289,908 in restitution. Frank Jason Cole, 49, pleaded guilty on September 14, 2026 to wire fraud over false Employee Retention Credit claims for 52 individuals seeking more than $24 million, of which over $19 million was paid.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
Memphis, TN – The U.S. Attorney's Office for the Western District of Tennessee today announced tax fraud cases as part of nationwide enforcement actions led by the Justice Department’s National Fraud Enforcement Division, Internal Revenue Service, and Internal Revenue Service Criminal Investigation targeting tax fraud and related offenses. The Western District of Tennessee was a key participant in this surge effort. Between early September and today, the National Fraud Enforcement Division’s Tax Section and U.S. Attorneys’ Offices across the country participated in the Department’s first-ever National Tax Enforcement Surge. The surge of nationwide resources resulted in prosecutorial actions against 76 defendants, whose alleged and proven crimes intended an estimated loss of revenue to the federal government of more than $490,000,000. United States Attorney D. Michael Dunavant, of the Western District of Tennessee, said, “Income tax fraud schemes strike at the very heart of our federal government’s financial ability to provide services and protection for our citizens, and we will use all available resources to punish and deter such dishonest criminal behavior. The outcomes of these cases send a clear message: there will always be a consequence, a reckoning, for stealing from the American taxpayer.” According to court documents and in-court statements: - Lynnette Hogue, 45 , of Memphis, pleaded guilty on October 13, 2026 to preparing false tax returns for others and failing to file her own tax returns. Hogue prepared and filed with the IRS false and fraudulent income tax returns for clients of the tax preparation business where she worked. These tax returns contained false and fraudulent items, which generated refunds the clients were not entitled to receive. Hogue also willfully failed to file her own tax returns, even though she earned substantial income from her tax return preparation business and was required to file by law. Hogue’s fraudulent conduct caused a loss to the IRS of $4.1 million. Hogue pleaded guilty to one count of willfully aiding and assisting in the preparation and presentation of a false tax return and one count of willfully failing to file a tax return. She is scheduled to be sentenced on January 15, 2027 and faces a maximum penalty of four years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Trial Attorneys Isaiah Boyd III and Matthew C. Hicks of the Fraud Division’s Tax Section and Assistant U.S. Attorney Carroll L. André III for the Western District of Tennessee are prosecuting the case. - Rebecca Gilley, 41 , of Memphis, was sentenced to 30 months in federal prison on October 8, 2026 for filing false tax returns on behalf of clients of her tax preparation business. Gilley, who also went by the names Rebecca Green and Rebecca Maxwell, owned and operated a tax preparation business in Memphis. Gilley prepared tax returns for clients for the years 2018 through 2022 that included false education credits and sick and family leave credits. As a result of these and other false items, Gilley caused her clients to receive fraudulently inflated tax refunds they were not entitled to receive. For the years 2020 and 2021, Gilley filed more than 1,000 tax returns seeking more than $9.25 million in fraudulent sick and family leave credits. She often added these false items to her clients’ returns without their knowledge and rarely reviewed the final returns with the clients. In total, Gilley’s scheme caused a loss to the United States exceeding $350,000. Gilley was also sentenced to one year of supervised release and ordered to pay $289,908 in restitution to the IRS. She will also permanently be enjoined from operating as a tax return preparer. Trial Attorneys Caroline Pearson and Max Willner-Giwerc of the Fraud Division’s Tax Section prosecuted the case. - Frank Jason Cole , 49 , of Memphis, pleaded guilty on September 14, 2026 to wire fraud for preparing and submitting false tax returns. Cole was developed as a lead after Internal Revenue Service (IRS) investigative analysts analyzed tax filings associated with Cole that showed unusual filing activity of Form 944, Employer’s Annual Federal Tax Return, to include unprecedented refund requests. The Forms 944, filed in 2022 and 2023, made false claims for the Employee Retention Credit or “ERC.” Cole prepared and filed false business tax returns for 52 individuals, requesting more than $24 million in false refunds, of which over $19 million were paid out. United States District Judge Thomas L. Parker is scheduled to sentence Cole on January 21, 2027. Cole faces a maximum penalty of 20 years in federal prison, a three-year period of supervised release, restitution, and monetary penalties. Assistant United States Attorney William Bateman prosecuted the case on behalf of the government. "These investigations reflect the outgoing efforts of IRS Criminal Investigation to combat tax-related crimes and protect the integrity of the federal tax system,” said Special Agent in Charge Donald “Trey” Eakins, Charlotte Field Office, IRS Criminal Investigation. "We will continue to work with our law enforcement partners and the U.S. Attorney’s Office to pursue those who attempt to defraud the government and ensure that individuals are held accountable for their actions." This press release details one way in which this office has contributed to ensuring that all Americans pay their fair share. To see the successes of other offices, click here . On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs. An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###
File and source
- File
- doj-usao-wdtn-press-release-us-attorneys-office-western-district-tennessee-joins-doj-fra-2026-10-14.json
- Size
- 8,725 bytes
- SHA-256
- d015bda5809f7932470e8b4d612cbd5787d6f6db47c4e1aade56ff25116b32c9
- Original
- www.justice.gov