IRS Paid Out $81 Million in Refunds to Six in Fraud Scheme

The Internal Revenue Service has disbursed $81 million in refunds based on fraudulent tax returns filed by a Mobile, Alabama, accounting firm, according to a federal indictment unsealed Wednesday. The agency is seeking the remaining $96 million from a total claimed amount of $177 million.

U.S. Attorney's Office officials in Mobile identified six defendants in the case. Jennifer Beverly, 47, is the lead defendant as the owner of JB Accounting Tax Service LLC on Broad Street. She faces charges of conspiracy to commit wire fraud and wire fraud. The indictment also names four of her employees: Jadasha Bowman, 28; Solida Lucille Green, 36; Paris Lovett, also known as Paris Johnson, 30; and Shermeka Benjamin, 38. All four face conspiracy and wire fraud charges.

Kennedy Lawrence Stovall Winston, 42, is the fifth named defendant. A former University of Alabama basketball player and Blount High School graduate, Winston worked for the service. In addition to the fraud charges related to the tax returns, he faces a separate federal fraud charge connected to stolen Treasury checks.

Prosecutors allege the group operated from approximately 2021 through 2024. During that period, they filed more than 9,000 returns. The indictment lists several specific deductions and credits that the defendants allegedly claimed without valid basis. These include COVID-19 credits, fuel tax credits, credit repayments, estimated tax payments, and education credits.

The investigation is part of a coordinated effort led by the Justice Department’s National Fraud Enforcement Division, the IRS, and the FBI. Christopher Flowers, special agent in charge of the FBI’s Mobile Field Office, stated that the charges demonstrate a strong partnership among the agencies. He noted that the group worked closely to identify the extent of the fraudulent activity.

Maisha Horton, acting special agent in charge of the Atlanta Field Office of the IRS Criminal Investigation Division, described the alleged abuse as staggering. She said in a prepared statement that tax return preparers are entrusted with sensitive financial information and must uphold the integrity of the tax system. Horton added that those who manipulate tax credits for personal gain should expect the IRS, FBI, and U.S. Attorney’s Office to follow the money.

No court date has been set for the defendants. If convicted, each of the six individuals faces a maximum prison sentence of 20 years.