Business Owner Indicted on Tax Evasion Charges

United States Attorney's Office, Western District Tennessee

FOR IMMEDIATE RELEASE

Jackson, TN - Isaac H. Brooks, Jr. of Jackson,   Tennessee, has been indicted by a grand jury, charged with 29 counts of income   tax evasion announced Lawrence J. Laurenzi, United States Attorney for the   Western District of Tennessee.  Brooks had his initial appearance before U.S.   Magistrate Edward G. Bryant today, and he was detained pending his detention   hearing set for 1:00 pm on Friday, April 30th, 2010.

According to the indictment, Brooks filed Individual Form 1040 tax returns   for 2002 and 2003 that substantially understated his taxable income and tax due   and owing to the United States.  The indictment alleges that Brooks then failed   to file individual income tax returns for 2004 through 2007 with the Internal   Revenue Service (IRS) as required by law.  During this time Brooks allegedly   leased or purchased several new vehicles including two Cadillac Escalades, an   Infiniti G35 Coupe, a Mercedes Benz CLS500C, a BMW 745LI, and  purchased   household furnishings, all in the nominee name of Antioch Missionary Baptist   Church.  Brooks also concealed his involvement and/or ownership of his business,   Temp Owned Temporary Service (TOTS) by having the City of Jackson’s Business Tax   Report in his wife’s name.  Additionally, the indictment alleges that Brooks   provided false and misleading information to an Internal Revenue Service   Officer.           

The indictment also states that for two quarters in 2003 and for all of 2004   and 2005, Brooks filed false and fraudulent quarterly Form 941, Employer’s   Quarterly Federal Tax Return for his business, TOTS.  For each of these   quarters, Brooks substantially understated the taxable wages paid to employees,   federal income tax withholdings, and social security taxes due and owing for   each quarter.  For all of 2006 and 2007, Brooks failed to file these quarterly   employer returns with the IRS as required by law.

Lastly, the indictment alleges that Brooks filed fraudulent Form 940-EZs,   Employer’s Annual Federal Unemployment (FUTA) tax returns for TOTS for calendar   years 2003 and 2004.  The indictment states that Brooks substantially   understated the total wages paid to employees for those years, thus understating   the FUTA tax due and owing to the United States.  Brooks failed to file Forms   940-EZs for 2005 through 2007 with the IRS.

Brooks faces a maximum penalty of 5 years and a fine of $250,000 on each   count if convicted.

This investigation was conducted by IRS Criminal Investigation.  Assistant   U.S. Attorney Leigh Grinalds will represent the government.

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Note:  An indictment is a form of accusation and is not   evidence of guilt.  The defendant is presumed innocent until and unless proven   guilty beyond a reasonable doubt.