Tax Preparer Indicted in SYAM Tax Service Scheme

BEAUMONT — A Dallas tax preparer has been indicted for federal violations in East Texas. Shannon Tecoko Mays, 36, has been indicted by a federal grand jury charging him with conspiracy to commit wire fraud. According to prosecutors, an investigation began in August 2012 in response to numerous complaints to state and federal authorities from citizens in Lufkin, Nacogdoches, Port Arthur and Anahuac regarding income tax returns that were being fraudulently prepared on their behalf. During the investigation, it was discovered that Mays was operating numerous offices across the United States under the name “Syam Tax Services, L.L.C.” and “Baby Momma Tax.” Although the principal office was located in Dallas, Mays also operated or sought to operate satellite offices in numerous other locations, including Fort Worth, Houston, New Orleans, Memphis, Atlanta, Chicago and Los Angeles.

The indictment alleges that Mays targeted individuals who were generally exempt from having to file income tax returns because they would be less likely to discover a fraudulent tax return had been filed on their behalf. To further facilitate the scheme, Mays employed “recruiters,” paying them from $50-100 for every client they successfully brought into Syam Tax. In order to avoid detection, Mays altered the taxpayer’s address and phone numbers on the returns so that any phone calls or correspondence from the IRS would not reach the taxpayer. The scheme also used electronic deposits to ensure paper checks would not be mailed to the taxpayer.

According to federal prosecutors, for the tax year 2011, Mays filed 4,226 tax returns claiming approximately $3,150,406. If convicted, Mays faces up to 20 years in federal prison.