Calif. Sisters Get 6 Years in Prison for Tax Fraud

Charitable Donations, Fraud, IRS, Mortgage Interest, Real Estate, Tax Fraud

Two Southern California sisters have been sentenced to six years in federal prison and ordered to pay $14 million in restitution for their role in defrauding the IRS.

Karen Berry of San Bernardino and Carla Berry of Rialto were sentenced Monday in U.S. District Court in Riverside.

Their father, Matthew Berry of Rialto, ran a tax preparation business called N.C.K. Services Inc. and served time for income tax fraud.

The Berry sisters pleaded guilty in March 2008 to conspiracy to cheat the IRS out of more than $30 million and helping to prepare false tax returns with deductions for mortgage interest, unreimbursed employee expenses, real estate taxes and charitable contributions.

Two other defendants previously pleaded guilty to similar charges and were sentenced in 2008.

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