MADISON TAX PREPARER INDICTED FOR TAX AND WIRE FRAUD
HUNTSVILLE CO-CONSPIRATOR PREPARER PLEAD GUILTY

BIRMINGHAM, AL - LADON CHRISON BAFFIELD has been indicted by a federal grand jury for conspiracy to defraud the U.S. Government with respect to claims and wire fraud.

BAFFIELD, 42, of Madison, Alabama, owned and operated LCB Financial Services (LCB) and Titianium Mortgage. BAFFIELD through LCB engaged in the business of preparing and filing income tax returns for taxpayers. As a part of his business BAFFIELD offered refund anticipation loans to taxpayers in the amount of their income tax refunds, less a fee to LCB.

“The ‘quick money’ from Refund Anticipation Loans is appealing to dishonest tax preparers and some citizens. I wonder if defendants can even remember how they spent the money once they go to jail,” said U. S. Attorney Alice H. Martin.

The indictment alleges in Count One that from April 2002 until about June 2002, BAFFIELD conspired with Walter Sullivan, who owned Just That Fast Tax, to defraud the U.S. Government by obtaining and aiding to obtain the payment and allowance of false and fictitious and otherwise fraudulent claims. They filed false returns by amending 1999 and 2000 federal income tax returns claiming refunds which LCB knew the taxpayers were not entitled to receive, without the knowledge of the taxpayers who had employed LCB. BAFFIELD caused about eighteen false amended returns to be filed and falsely claimed about $30,406 from the U.S. Government.

Count Two alleges that in June 2005, BAFFIELD committed wire fraud in that he transmitted false information through Titanium Mortgage to Finance America in an effort to obtain a mortgage loan. Finance America sought verification of a business license included in the mortgage loan package, and learned from the Madison County license department that the business license had been altered.

The penalty for conspiracy is a maximum of 10 years imprisonment, and a fine of not more than $250,000. The penalty for wire fraud is not more than 20 years imprisonment and a fine of $250,000.

His co-conspirator, WALTER K. SULLIVAN, 49, of Huntsville was previously charged on June 30, 2005 by criminal information with his part in this conspiracy. He plead guilty in November 2005, and was sentenced to six months community confinement and placed on probation for 5 years. SULLIVAN was ordered to pay $27,175 in restitution to the Internal Revenue Service.

“The Internal Revenue Service-Criminal Investigation is committed to investigating tax return preparers who not only violate our tax laws, but also harm individuals whose identities may have been compromised as a result of their criminal activity,” stated Rebecca A. Sparkman, Special Agent in Charge, IRS - Criminal Investigations, Atlanta Field Division.

This matter was investigated by Special Agents from the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigations Division. Assistant United States Attorney Angela Redmond Debro is prosecuting this matter on behalf of the U.S. Government.

Members of the public are reminded that an indictment contains only charges. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.