Memphis Tax Preparers Charged in Federal Fraud Cases
Three local tax professionals face federal charges for filing false returns and seeking millions in fraudulent refunds.
Updated on Oct. 15, 2026 in Financial Crime
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Federal prosecutors have charged three Memphis-based tax preparers with roles in complex tax fraud schemes. These cases are part of a broader Justice Department initiative tackling widespread tax-related crimes across the country.
Why it matters
The crackdown aims to protect the integrity of the federal tax system by holding preparers accountable for massive losses. Nationwide, the enforcement effort has targeted 76 defendants involved in over $490 million in losses.
Rebecca Gilley was sentenced to 30 months in prison and ordered to pay $290,000 in restitution for causing over $350,000 in losses. Meanwhile, Lynnette Hogue and Frank Jason Cole await sentencing after pleading guilty to their respective fraud charges.
The players
Lynnette Hogue
A tax preparer who pleaded guilty to preparing false returns and failing to file her own personal returns.
Rebecca Gilley
A tax preparer sentenced to 30 months in federal prison for filing false tax returns and seeking fraudulent credits.
Frank Jason Cole
A tax preparer who pleaded guilty to wire fraud after submitting false business tax returns for 52 clients.
Department of Justice
The federal executive department responsible for the enforcement of laws and the administration of justice in the United States.
The details
The defendants allegedly submitted false business tax returns and requested millions in fraudulent credits and refunds from the IRS. Lynnette Hogue alone caused an IRS loss of $4.1 million, while Frank Jason Cole requested $24 million in refunds for 52 people.
Timeline
Between 2018 and 2022, Rebecca Gilley filed false tax returns.
In September 2026, Frank Jason Cole pleaded guilty to wire fraud.
On October 12, 2026, Lynnette Hogue pleaded guilty to tax fraud.
In October 2026, Rebecca Gilley was sentenced to federal prison.
On January 15, 2027, Lynnette Hogue is scheduled for a sentencing hearing.
Legal Context
These prosecutions align with a wider federal strategy to increase oversight of tax preparation services to curb systemic abuse. The cases follow a pattern set by the nationwide Justice Department tax enforcement initiative to address multi-million dollar fraud schemes.
These cases underscore the importance of verifying the credentials of tax professionals to avoid potential legal liability for false filings. Residents should ensure their tax documents are handled by reputable services to protect against fraud exposure.
The takeaway
Taxpayers should carefully audit the information submitted by their tax preparers to prevent becoming complicit in fraudulent claims. Keeping accurate financial records provides a critical defense against errors or intentional misconduct by third-party preparers.
What happens next
Lynnette Hogue is scheduled to appear for her sentencing hearing on January 15, 2027.
Further reading
For additional context on legal actions in the region, visit the Memphis Financial Crime section.
Source note: This article includes information reported by Thunderbolt Radio.
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