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Actor Wesley Snipes indicted for tax fraud, warrant for arrest issued

By Stone Martindale Oct 17, 2006, 16:36 GMT

In a crazy scheme involving the firm, American Rights Litigators, "Blade" actor Wesley Snipes was indicted Tuesday on eight counts of tax fraud accusing him of defrauding $12 million from the US government in false tax refund claims. Snipes, 44, failed to file tax returns for six years, according to an indictment unsealed in Tampa, Fla. Snipes is also charged with presenting a fraudulent claim for payment to the IRS. The agency announced the eight-count indictment today.

Each count carries a maximum sentence of five years in prison, meaning he could face up to forty years in prison if he faces trial and is convicted on all charges. Federal prosecutors said Snipes fraudulently claimed the refunds in 1996 and 1997. It also charged him with failure to file returns between 1999 and 2004.Central Florida News 13 reports according to the indictment, Snipes had his taxes prepared by accountants with a history of filing false returns to reap payments for their clients. As part of the deal, the indictment alleges, the firm, American Rights Litigators, would receive 20 percent of refunds from clients.TMZ.com reports Snipes and two other defendants Eddie Ray Kahn and Douglas Rosile are accused of attempting "through deceit, craft, trickery, and dishonest means to make it appear as if Snipes had no liability for federal income taxes, when in fact defendant Snipes had such liability." Snipes faces doing real time in prison, no word as to why he did not have a real business manager overseeing his financials.