Federal authorities have filed lawsuits accusing seven people --one of them from Utah -- of promoting a bogus tax return scheme that sought a total of $562 million in bogus refunds.

The Justice Department cases were filed in Salt Lake City; Los Angeles; Panama City, Fla,;, Nashville, Tenn., and Pocatello, Idaho.

The sole Utah defendant is Heber City resident Dick Jenkins, who allegedly holds himself out as a certified public accountant.

The suit against Jenkins says he prepared or filed at least 20 fraudulent returns requesting approximately $393 million in bogus refunds. Jenkins allegedly asked for a $210 million refund for one client. The returns targeted in the suit were filed in 2007 through 2009.

The IRS says it detects and blocks a large majority -- but not all -- of such refund claims. Under the scheme, individuals file a series of phony IRS forms claiming large income tax withholding.

Officials say the tax preparers often falsely tell customers the government maintains secrets accounts of money for its citizens that can be accessed by filing false returns.

Tribune reporter Pamela Manson c ontributed to this story.


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