J. Thomas Black - Bankruptcy News - Indictment In $2 Million Bogus Tax Refund Scheme

[HOUSTON, TX] – Anthony Quinn Welch, 47, of Sugar Land, Texas has been indicted for allegedly using the tax returns of two former professional football players to obtain more than $2 million in bogus tax refunds for himself over a six year period, United States Attorney Don DeGabrielle announced today.

Welch, who was arrested yesterday at his office located on the 7300 block of the Southwest Freeway by special agents of the Internal Revenue Service Criminal Investigations, is scheduled to appear before U. S. Magistrate Judge Frances Stacy today at 2:00 p.m. for an arraignment and bond hearing.

According to allegations in the six-count indictment returned earlier this month, and unsealed yesterday, between 1997 and 2002 Welch solicited and was given the responsibility of preparing and filing various tax returns for two former professional football players. Unknown to the football players, Welch allegedly added fictitious deductions, business expenses and losses to their tax returns so that Welch could obtain and consume fraudulent income tax refunds totaling $717,527 in one player’s name and $1,405,845 in the other’s name.

Welch used bogus mailing addresses and opened secret bank accounts in the names of the football players, according to the indictment, then arranged for the fraudulent refunds -- with forged signatures -- to be deposited into those accounts. A total of $2,123,372 in allegedly fraudulent refunds were deposited in this manner.

Anthony Quinn Welch is charged with four counts of preparing and filing false tax returns and two counts of filing false claims against the United States. If convicted of any one of filing false tax returns counts, Welch faces a statutory maximum of three years imprisonment without parole. Each of the filing a false claim counts carries a maximum statutory penalty of five years in prison. Each of the counts also carries a maximum $250,000 fine.

The investigation leading to the charges against Welch was conducted by the Houston Office of the Internal Revenue Service Criminal Investigations. The case is being prosecuted by Assistant U. S. Attorney Jimmy Sledge.

An Indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.

Source: U.S. Dept of Justice web site, So. District of Texas.