South Bend man ordered to pay $2.5M for tax fraud - Fox 28: South Bend, Elkhart IN News, Weather, Sports

South Bend man ordered to pay $2.5M for tax fraud

Jonathan Parahams (Courtesy St. Joseph County Police) Jonathan Parahams (Courtesy St. Joseph County Police)

A South Bend man has been sentenced to more than seven years in prison and ordered to pay more $2.5 million dollars after pleading guilty to a tax fraud scam.  The U.S. Attorney's Office of the Northern District of Indiana announced Friday 28-year-old Jonathan Parahams, Jr. was sentenced for conspiracy to defraud the United States Department of the Treasury.

Parahams was arrested by South Bend Police on drug and gun charges, but during their investigation they say they uncovered evidence pointing to other crimes.  The U.S. Attorney's Office says Parahams, along with a group of associates, had been using fake tax returns and false or inflated W-2 forms to get huge returns from the IRS. 

Since 2009, the group reportedly filed hundreds of fraudulent returns.  Authorities say they have recordings of Parahams working to continue the fraud even from jail after he was arrested in August of 2010.

Parahams sentence is for 92 months, but he is also sentenced to 3 years supervised release following his prison term.

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