A three-month investigation that began when an ex-employee of a Rich Square tax preparation service alleged her credentials were being used to file federal and state taxes after she left resulted in charges against the company for allegedly filing returns using bogus documents.

Rich Square Police Chief A.B. Roye estimates the business, Well Kept Tax Solutions, allegedly cheated out the government out of at least $50,000 and caused some innocent victims in the case to have their returns audited.

The business opened at 117 South Main Street around January 1, Roye said in a statement.

In just over three-months time the police department received a complaint on March 25 from the former employee alleging her credentials were used.

While there was no evidence to support an identity fraud charge based on review of the evidence seized — numerous documents and three computers — police, with assistance of Internal Revenue Service criminal investigators and the United States Secret Service, discovered fraudulently prepared documents that were allegedly used in ways to file taxes.

This investigation led to warrants issued for three tax preparers as well as one client.

“What they were doing,” Roye said in an interview today, “Was making false documents such as letters in clients' names that they made this much money; fake W-2 forms, fake birth certificates. The reason they were doing this was to get a larger return for clients and a larger preparer's fee. This is a national issue. It's going on all over the place, just bilking the feds and states out of billions.”

Arrests in the case have been ongoing since July when the owner surrendered and into this past weekend when two more surrendered in Halifax County.

The business closed the day the search warrants were served.

Roye said the crimes not only affected the business, but innocent clients seeking tax preparation help. “That in itself creates a big problem for the clients,” he said. “Some of these clients are co-conspirators who knew the scam was going on, not thinking about the repercussions.”

One of the innocent victims, the chief said, got notification from the IRS that she was being audited and called to find out what was happening. “The preparer filed fraudulent wages and the client's return was denied because of the discrepancies. Some clients knew and were totally unresponsive or unwilling to talk.”
Arrested in the case were:

Co-owner Laquita Taylor of Woodland. She was arrested on July 29 for forgery of endorsement on a fraudulently created document and conspiracy to obtain property by false pretense. She is out of jail on $12,000 secured bond.

Tracey Boyce of Rich Square the owner of Well Kept Tax Solutions. She turned herself in to Roanoke Rapids Police on August 2 and was arrested for conspiracy to obtain property by false pretense, possession of more than five counterfeit documents and notary fraud. She was released on a $5,000 unsecured bond by a Halifax County magistrate.

Corey Williams of Farmville also turned himself in to Roanoke Rapids Police on August 2 and was arrested for two counts of obtaining property by false pretense.

Barbara Harris, a client, of Woodland has not been arrested and is apparently avoiding capture, Roye said.

Several attempts have been made to locate her at her residence. A warrant was issued charging her with conspiracy to obtain property by false pretense.

Anyone with information concerning her whereabouts is encouraged to call Rich Square police at 252-539-2136, Northampton County Crime Stoppers at 252-534-1110 or the Northampton County Sheriff’s Office at 252-534-2611. Everyone arrested in this case is scheduled to appear in Northampton County District Court in Jackson on August 29.

In the statement, Roye said, “This case involves so many clients and thousands of dollars. All charges are tax fraud related. I encourage anyone who had their taxes done by this business and feel that their personal information or their taxes have been jeopardized to contact me at 252-539-2136 or the IRS toll-free at 1-800-908-4490 and to please have your taxes completed by a professional company.”