Fayetteville Woman Pleads Guilty In State Tax Scheme

Date: 9/14/2004

RALEIGH – A Fayetteville woman pleaded guilty Monday in Wake County Superior Court to tax charges filed by the North Carolina Department of Revenue.

Kimberly Joe Melvin, 27, of 2917 A Dwelle Drive, pleaded guilty on Sept. 13, 2004 to six counts of aiding and assisting in the preparation of fraudulent tax returns.

Wake County Superior Court Judge Donald W. Stephens sentenced Melvin to two, 19-month minimum, 28-month maximum prison terms. The sentences were suspended and Melvin was placed on supervised probation for 36 months. She was ordered to serve a 13-day active sentence in the Wake County jail as a special condition of probation. Earlier this year, Melvin pleaded guilty to three counts of obtaining property by false pretenses for filing tax returns using fictitious wage and tax statements. She received a suspended six-month minimum, eight-month maximum prison term. She was ordered to pay a $500 criminal fine, perform 150 hours of community service and was placed on 36 months probation.

The state’s evidence showed that Melvin provided several individuals with fraudulent wage and tax statements used to prepare state income tax returns. The W-2’s were prepared in an effort to deceive the state into issuing tax refunds the individuals were not lawfully entitled to receive.

The charges against Melvin resulted from an investigation by a special agent with the Department’s Criminal Investigations Division. Two other individuals have been identified as promoters of this scheme. Robert Lester McAllister of Fayetteville was arrested last month in San Antonio, Texas and charged with 20 counts of aiding and assisting in the preparation of fraudulent North Carolina tax returns. Fredric Anthony McMillian of Fayetteville pleaded guilty to 25 counts of aiding and assisting in the preparation of fraudulent North Carolina tax returns. On Aug. 18, 2004, he was sentenced to three, consecutive 10-month minimum, 12-month maximum prison terms.

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