7 sentenced in fuel tax-credit fraud

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Story Published: Nov 21, 2008 at 10:26 PM EDT

Story Updated: Nov 21, 2008 at 10:26 PM EDT

VALDOSTA, Ga. (AP) - A federal judge in Valdosta has sentenced seven people in a tax-fraud scheme involving almost $5 million in phony credits for diesel fuel claimed for logging businesses that were either defunct or never existed.

The U.S. Attorney's Office in Macon says the seven, who received sentences Thursday ranging from probation to three years in prison, received a total of $3.1 million in fraudulent income tax refunds.

They were among 11 accused of participating in the scheme from 1999 to 2004, including a pair of Valdosta tax preparers who await sentencing after pleading guilty to filing the phony returns.

Diesel fuel used for off-highway business equipment qualifies for a tax credit for excise taxes paid on the fuel.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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