Two Cumberland County Men Jailed in State Tax Scheme

Date: 8/19/2004

RALEIGH – Two Cumberland County men were sentenced to active prison terms Wednesday on felony tax charges filed by the North Carolina Department of Revenue.

Frederic Anthony McMillian, 35, of Fayetteville pleaded guilty on March 11, 2004 to 25 counts of aiding and assisting in the preparation of fraudulent tax returns. His judgment was continued and he remained in jail awaiting sentencing.

Wake County District Court Judge Robert D. Radar sentenced McMillian to three, consecutive 10-month minimum, 12-month maximum prison terms. One sentence was suspended and McMillian was ordered to complete two years of supervised probation after completing his active sentence. He was given credit for the 181 days he has already served in the Wake County Jail.

An investigation by the Department of Revenue’s Criminal Investigations Division found that McMillian provided several individuals with fictitious wage and tax statements that were used to prepare fraudulent state income tax returns. The W-2’s deceived the state and caused the Department of Revenue to issue larger tax refunds to the individuals than they were lawfully entitled to receive.

In a related case, Virgil Junior Ray, 36, of Eastover pleaded guilty on Aug. 18, 2004 to one count of attempting to obtain property by false pretenses. Ray filed a fraudulent return for 2002 using a fictitious wage and tax statement.

Wake County District Court Judge Robert D. Radar sentenced Ray to a seven-month minimum, nine-month maximum active prison term.

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