Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, April 4, 1995 TAG: 9504040097
SECTION: VIRGINIA PAGE: C1 EDITION: METRO
SOURCE: JAN VERTEFEUILLE STAFF WRITER
DATELINE: LENGTH: Medium
Two defendants pleaded guilty before the trial began Monday morning in U.S. District Court in Roanoke, but four of the remaining five waited until after the prosecution's first witness - an IRS special agent - testified.
That left just Breen sitting at the defense table when the jury returned from a recess late in the day. Judge Samuel Wilson recessed court until today, telling jury members, "you should not concern yourself as to why [the four] are no longer defendants."
The scam was masterminded by Bland Correctional Center inmate Jimmy Blankenship, who in 1993 typed up false W-2 forms showing that up to 35 inmates and their relatives had worked the year before. False 1040EZ income tax returns then were filed requesting refunds of up to $4,233. Almost $28,000 was paid out before the IRS caught on.
Blankenship, who cooperated with authorities immediately and pleaded guilty, is expected to testify today against Breen, who was the prison barber.
Breen's attorney, Richard Lawrence, said his client knew nothing of the scam and his name was used on a false return unknowingly.
"He didn't sign it. He said he didn't know anything about it," Lawrence said.
Assistant U.S. Attorney Ken Sorenson said, however, that Breen knew about the scam and had his refund mailed to his sister's house in Charlottesville so his parents wouldn't see it. Breen is now out of prison and is in the restaurant business, Lawrence said.
Keith Furr, a former inmate who pleaded guilty Monday, said he also knew nothing of the fraud. He said he went along with the plea agreement so his parents, who are in poor health and who drove from Hampton with him to Roanoke, wouldn't have to be put through a four- or five-day trial.
"I should have went ahead and gone through the whole trial," Furr said. He said Blankenship got his Social Security number from school records and filled out the tax return without Furr's knowledge.
The six defendants pleaded guilty to conspiracy to defraud the IRS. Individual charges relating to the tax return each defendant filed were dismissed as part of the agreement, although they all will be held responsible for restitution in the amount of the refund on their returns.
Pleading guilty Monday were Furr, Robert J. O'Toole, Tony M. Branham, Irvin D. Guy, Albert M. Deal, and Ernest "Wes" Garraghty.
Blankenship, Arletta Greenway, Tammy Moran, Shirley Garraghty, Brian S. Martin and James A. Shifflett pleaded guilty earlier. Besides filing false returns, the three women helped in the scam by picking up packages of tax returns Blankenship sent to a Goodview post office box and remailing them to the IRS.
by CNB