Tax preparer indicted, alleged victims speak out | Business

The United States Grand Jury has filed charges against the owner of Nationwide Tax Solution: Bertha Vaughn, aka Bertha Milton.

The Grand Jury alleges Vaughn purposely added fabricated items to her clients' returns, without their knowledge, so they would get higher tax refunds. The Grand Jury claims the reason Vaughn did this so she could get more clients through referrals and make more money, as well as charge clients more because she filed complicated tax returns.

Eyewitness News first reported Vaughn's activity in July 2010. At that time, Bakersfield resident Bryan Avalos was denied a home loan because Vaughn reported on his taxes that he lost $16,000 in his construction business. However, Avalos didn't own a business at all.

A similar incident happened to Linda Harness for her 2006 tax return. She didn't know anything was wrong until she got a letter from the IRS which said that he ran a daycare and was a receptionist. "I've never been a receptionist," said Harness.

That misinformation cost the pair a lot. Avalos owed $3,300 to the federal government and $570 to the state, and Harness owed $2,000.

Those two are not alone.

The Grand Jury has 49-counts against Vaughn in its indictment. It appears the way Vaughn was caught in this alleged scheme was by fraudulently filing the tax returns of two undercover IRS agents.

Eyewitness News went to the Nationwide Tax Solution office on Hasti Acres Dr. to get Vaughn's reaction about the indictment. The door was locked, and when we knocked a woman on the other side told us she didn't want to talk and didn't know how to get a hold of Vaughn.

While no one inside the office wanted to talk, Eyewitness News saw clients going into the office to pick up their paperwork. The clients told us that Nationwide called them and said the business was closing.

While those clients didn't lose any money, the ones that did are glad to see Vaughn go to court.

"I hope she gets what she deserves," said Harness. "When you do wrong, wrong come back at you."

Vaughn has not been arrested for the charges that will depend on the outcome of the case.

If convicted, Vaughn faces a maximum penalty of three years in prison for each of the 49-counts, a $250,000 fine, a period of supervised release, and restitution.