FOR IMMEDIATE RELEASE TAX

THURSDAY, SEPTEMBER 15, (202) 514-2007

2005 TDD (202) 514-1888
WWW.USDOJ.GOV

Jury Convicts Houston Public Works

Employee on Tax Fraud
Defendant Prepared False Tax Returns For Clients
WASHINGTON, D.C. - The Justice Department and Internal Revenue Service
announced that, following a three-day trial, a federal jury today convicted Jerome J.
Harris of willfully preparing fraudulent income tax returns for his clients. United
States District Judge Nancy Atlas scheduled sentencing for December 5, 2005.

The maximum penalty for each fraudulent return charge is three years imprisonment
followed by up to one year of supervised release, a fine of $250,000, and liability
for the costs of prosecution.

"People who prepare false or fraudulent tax returns risk criminal prosecution and,
upon conviction, substantial time in jail," said Dana Boente, Deputy Assistant
Attorney General for the Justice Department's Tax Division. "They also put their
clients at serious risk of civil penalties and, in appropriate cases, criminal
prosecution."

"While most return preparers provide excellent service to their clients, unscrupulous
tax preparers file false and fraudulent returns to cheat and ultimately defraud their
clients and the government," said Nancy Jardini, Chief Criminal Investigation.
"Today's verdict reaffirms the IRS's commitment to investigate and recommend
prosecution against return preparers who knowingly prepare false tax returns on
behalf of others."

According to the indictment and evidence introduced at trial, Mr. Harris was a full-
time employee of the Department of Public Works and Engineering for the City of
Houston and also owned and operated Jay's Bookkeeping and Tax Service, located
at his residence in Missouri City, Texas. He prepared 21 fraudulent federal income
tax returns, which falsely reported filing status, dependents, Schedule C businesses,
gross income, and expenses, and claimed fraudulent tax refunds totaling
approximately $70,000.

Deputy Assistant Attorney General Boente thanked Tax Division Trial Attorneys
Jenny Grus and Jen Ihlo, who prosecuted the case. He also thanked the special
agents of the Internal Revenue Service whose assistance was essential to the
successful investigation and prosecution of the case.

Additional information about the Justice Department's Tax Division and its
enforcement efforts may be found at www.usdoj.gov/tax.

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