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Texas Man Sentenced For Tax Fraud

A Texas man will spend two and a half years in a federal prison here in Arizona, for a five-year tax fraud scheme.

The Lakeway, Texas man will also pay more than $800,000 in restitution to the Internal Revenue Service and to the taxing authorities in Arizona and in California.

Prosecutors said 61-year-old Stephen Allison filed 29 fraudulent federal and state tax returns, claiming more than $1.1 million in false refunds between 2007 and 2012. He previously pleaded guilty to false claims.

They said Allison falsely claimed the filer had earned large sums of money and had large amounts of money withheld from their earnings, entitling them to big refunds.

Allison also filed similar returns for some fictitious people and several acquaintances whose identities he had stolen.