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Owner Of Pittsburgh Tax Refund Stores Pleads Guilty To Defrauding IRS Of $7.2M

By: KDKA-TV News Staff

PITTSBURGH (KDKA) - A man who ran tax refund stores in Pittsburgh admitted to defrauding the IRS out of millions of dollars.

Ephrem Lijalem, the owner of Cititax Tax Refund stores in Pittsburgh, pleaded guilty to two counts in federal court, prosecutors announced Thursday.

Lijalem is accused of defrauding the IRS for $7.2 million with illegal tax refunds created by false Schedule C tax returns.

Prosecutors said tax return prepares at his stores regularly falsified Schedule C attachments to personal income tax forms for customers with fake businesses, inflated income and altered expenses.

Sentencing is scheduled for May 31. He could face 6 years in prison, a fine of $500,000 or both.

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