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Pinellas Telemarketer Admits To Tax Evasion

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By ELAINE SILVESTRINI | The Tampa Tribune

Published: January 28, 2009

A Pinellas County telemarketer pleaded guilty today to tax evasion, admitting he failed to pay more than $136,000 in federal taxes in 2004.

James T. Lovern, 37, was co-owner that year of three telemarketing companies: Customer Care Plus, Consumer Grants USA and Preferred Long Distance.

Consumer Grants USA of St. Petersburg was has been sued by several states, including Florida, and accused of scamming people by telling them they had been selected to receive government grants if they paid a fee.

The company was ordered to quit doing business in the state of South Carolina in 2005 after the attorney general there accused the company of failing to help state residents win government grants as promised.

Florida, which sued the company in late 2004, cited an example in which Consumer Grants USA informed consumers that they had won a grant from the Government Grant Information Guide because they had been prompt and reliable in paying their taxes to the IRS.

Officials said telemarketers working for the company began their pitch by asking consumers if they paid their taxes and had at least $239 in the bank. Consumers were often told they would win grants of $8,000 to $30,000 if they paid fees of $199 to $300, officials said.

In pleading guilty today, Lovern admitted failing to report earnings he received from Consumer Grants USA and the his other companies.

Lovern's total income for the year was $449,349, according to his plea agreement, and he owed $136,482 in federal taxes.

Lovern also pleaded guilty to illegally structuring financial transactions to evade government reporting requirements.

Tax evasion carries a maximum prison sentence of five years, while illegally structuring financial transactions carries a maximum of up to 10 years behind bars. Lovern is likely to receive a sentence lower than that under the terms of his plea agreement.

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