An Ohio tax preparer was sentenced to two years in prison and more than $20,000 in restitution in the wake of her guilty plea in a mortgage fraud case, media reports said.
Holly R. Coleman of Mayfield Heights, Ohio, was sentenced to 24 months imprisonment, followed by three years of supervised release, based on her guilty pleas to a three-count information charging her with aiding and assisting the preparation of false income tax returns, making false claims for income tax refunds in her own name, and mail fraud involving a fraudulent mortgage loan application, reports said.
Coleman was ordered to pay restitution of $3,896 to the Internal Revenue Service and $17,454 to National City Home Loan Services Inc., according to reports. Coleman was ordered to self-report to prison and remains on bond, reports said.
Coleman pleaded guilty to the charges on Feb. 21, 2006, in a written plea agreement, according to reports. According to the plea agreement, Coleman was self-employed as an accountant and tax return preparer, doing business as The Coleman Company and/or Tax Specialists, reports said.
Coleman induced two other persons, a relative and a friend, to act as nominees on her behalf to purchase and obtain mortgage financing for a property in South Euclid, Ohio, where Coleman intended to reside as her personal residence, the legal documents in the case charged, according to accounts.
Coleman induced the two to submit a joint loan application to First Franklin Financial Corp. (now National City Home Loan Services Inc.), knowing that the application documents contained false representations that they would occupy the premises as their principal residence, and that Coleman’s friend had monthly income of approximately $801 from “Tax Specialists & The Coleman Co.,” the legal documents alleged, reports said.
Coleman prepared and provided false and fictitious documents that were presented to First Franklin as part of the loan application, including a fictitious W-2 form and fictitious letters from the applicants’ purported landlords, according to the legal documents, reports said.
Coleman was also charged with preparing 56 federal income tax returns for 41 clients, which allegedly contained false claims, and was also charged with making false tax return claims on her own behalf, reports said.