Source: United States Department of Justice Criminal Division
A federal grand jury in the Northern District of Alabama returned an indictment today charging an Alabama man with preparing false and fraudulent tax returns for others and filing false and fraudulent tax returns for himself.
“As alleged, Mr. Shine orchestrated a sweeping tax fraud scheme that exploited federal energy‑credit programs and siphoned tens of millions of dollars from the U.S. Treasury,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “Tax preparers have a responsibility to help their clients comply with the law—not to misuse the tax system for personal gain. The Justice Department will continue to work closely with the IRS to pursue those who prepare or file knowingly false returns and to protect the integrity of our tax system.”
“The Michael Shine case is a clear example of how fraud harms honest taxpayers and erodes trust in the system,” said Special Agent in Charge Demetrius Hardeman of the IRS Criminal Investigation Atlanta Field Office. “By partnering closely with the Department of Justice’s Fraud Enforcement Division, IRS Criminal Investigation can bring advanced investigative tools and nationwide expertise to bear against schemes that threaten the financial integrity of the United States. This collaboration ensures that individuals who exploit government programs for personal gain are swiftly identified, investigated, and brought to justice. Together, we are protecting American taxpayers, safeguarding public funds, and reinforcing confidence that our institutions will hold fraudsters accountable, no matter the size or complexity of their schemes.”
According to the indictment, between 2021 and 2026, Michael Shine, 55, of Birmingham, owned a tax preparation business named “Shine’s Professional Services.” Shine allegedly prepared or assisted in the preparation of false tax returns for clients. The tax returns allegedly contained false information about whether the clients had qualified geothermal heat pump property costs. As a result of this allegedly false information, the clients received tax refunds that they were not entitled to receive. Shine allegedly changed and continued with his scheme after the IRS executed a search warrant at his tax preparation business.
Shine also allegedly filed false and fraudulent personal income tax returns for himself. These returns allegedly underreported Shine’s income from his tax preparation business, among other falsities.
Shine and his business allegedly filed tax returns claiming tax refunds totaling more than $70 million, of which $65 million was paid out. Agents believe that the vast majority of these refunds were predicated on false returns.
Shine is charged with 30 counts of aiding and assisting in the preparation of a false tax return and three counts of filing a false tax return. If convicted, Shine faces up to three years in prison for each false return count.
Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division and U.S. Attorney Phillip W. Williams Jr. for the Northern District of Alabama made the announcement.
Trial Attorney Isaiah Boyd III of the Criminal Division’s Tax Section and Assistant U.S. Attorney for the Northern District of Alabama Allison Garnett are prosecuting the case.
This indictment follows a federal complaint where Shine was arrested for the same conduct. A federal criminal complaint is a sworn, preliminary charge filed by a prosecutor and a law enforcement officer seeking an arrest warrant. After a complaint, the federal grand jury considers the evidence and, if it finds probable cause, indicts on the formal felony charge. A complaint and an indictment are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.