Eastern District of Texas joins DOJ Fraud Division, IRS, and IRS-CI in National Tax Enforcement Surge exposing over $490M in tax fraud

PLANO, Texas -The U.S. Attorney's Office for the Eastern District of Texas today announced results as part of a nationwide enforcement action led by the Justice Department's National Fraud Enforcement Division, the Internal Revenue Service, and Internal Revenue Service Criminal Investigation targeting tax fraud and related offenses. The Eastern District of Texas was a key participant in this surge effort.  

Between early September and now, federal prosecutors across the country facilitated fraud enforcement actions against 76 defendants and more than $90 million in intended loss to American taxpayers.  

"Tax fraud is not fraud against the federal government or the IRS," said U.S. Attorney Jay R. Combs. "Tax fraud is fraud against the American people. Federal income tax is used to fund programs that support American children, families, veterans, the disabled, and the elderly, and tax fraud directly impacts those programs."

"Tax fraud is a crime that comes with a litany of victims. Criminal return preparers often steal the identities of the taxpayers that hire them, steal large chunks of the fraudulent refunds, and target the communities that can least afford it. Employment tax fraud steals from your personal contributions to Social Security, Medicare and other programs you thought you were paying into. Tax evaders simply want to enjoy their lives by having you and I pay for it," said Special Agent in Charge Christopher J. Altemus Jr., of IRS-CI's Texas Field Office. "We are taking back what they stole and taking away their freedom to deter them from stealing again, but that won't stop every criminal. If you don't want to be a victim, select your return preparer carefully, avoid the temptation for a fraudulent better refund and report suspected fraud on IRS.Gov."

In the Eastern District of Texas, U.S. Attorney Jay R. Combs announced that five defendants have pleaded guilty and are awaiting sentencing for tax fraud.

On September 23, 2026, Antwon Pierre Sadler, 41, and Raegan Samone Hagler, 29, both of Longview, pleaded guilty to conspiracy to aid or assist in tax fraud. According to information presented in court, Sadler and Hagler worked at a tax preparer business owned by Marneitha Scott and operated under the name of F.A.S.T. Financial Firm ("FAST") with two locations in Longview. Scott, Hagler, and Sadler devised a scheme to defraud the United States by creating and instructing other tax preparers to create fraudulent entries on client tax returns, including claims for business losses when the client had no business. The tax returns were filed by Scott, Hagler, and Sadler or other employees and the tax preparation business was paid a fee by the clients for preparing and filing the returns. Their conduct resulted in a known tax loss for tax years 2019 - 2022 of at least $400,000.00 and an estimated tax loss of at least $5 million. Scott pleaded guilty to the same offense on February 18, 2026. All three defendants are awaiting sentencing.

On October 1, 2026, Jerome Theodore Powell, Jr., 51, of Horn Lake, Mississippi, pleaded guilty to conspiracy to file false claims. According to information presented in court, Powell was involved in a conspiracy which involved filing fraudulent tax returns for fictitious businesses and trusts that were created for the sole purpose of obtaining tax refunds. The scheme resulted in a tax loss of $4,192,028 and an attempted loss of approximately $17 million. Powell is awaiting sentencing.

On October 6, 2026, Joy Nicole Murphy, 36, of Mabank, Texas, pleaded guilty to aiding or assisting in tax fraud. According to information presented in court, Murphy operated a tax return preparer business in Gun Barrel City. She executed a scheme to file returns on behalf of her clients containing false and fraudulent information to ensure larger refunds. The scheme resulted in a tax loss of more than $350,000. Murphy is awaiting sentencing.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ("Fraud Division"). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.  

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