Friday, February 8, 2019

Carl Nicholson Convicted

The Justice Department issued the following statement.

A federal jury today in Hattiesburg, Mississippi convicted certified public accountant Carl Nicholson of conspiracy to defraud the United States, six counts of aiding in the preparation of false tax returns, and four counts of filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and United States Attorney Mike Hurst for the Southern District of Mississippi.

“Today, justice prevailed, the rule of law was enforced, and a long-time tax cheat was held accountable for his crimes,” said U.S. Attorney Hurst. “I commend our prosecutors, agents, and state investigators for their tireless work in bringing this individual and others like him to justice. Today’s verdict proves that no one is beyond the reach of the long arm of the law. We will continue to work with our partners and use every resource available to root out fraud and corruption throughout our state.”

According to court documents and evidence presented at trial, from 2012 to 2014, Nicholson conspired with a client to falsely classify personal expenses as business expenses and filed false tax returns on the client’s behalf. On one occasion, Nicholson directed that a $250,000 payment to one of the client’s personal trusts be classified as a business expense. Nicholson was also found guilty of filing his own false personal income tax returns for 2012 through 2015. Specifically, he falsely claimed expenses, failed to report income, and under-reported the gain on the sale of his accounting firm Nicholson & Company.

Sentencing has been scheduled for May 23, 2019. At sentencing, Nicholson faces a maximum of five years in prison for the conspiracy charge and three years for each charge of filing false tax returns and aiding in the preparation of false tax returns. He also faces supervised release and restitution.

Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Hurst thanked special agents of Internal Revenue Service – Criminal Investigation and investigators with the Mississippi Auditor’s Office, who investigated the case, and Assistant United States Attorney Jay Golden and Trial Attorney Kim Shartar, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

State Auditor Shad White issued the following statement. 

 Today former Mississippi Pine Belt Certified Public Accountant Carl Nicholson was convicted by a federal jury after being indicted on multiple counts. Special Agents from the Mississippi Office of the State Auditor assisted with the investigation. State Auditor Shad White issued the following statement:

"I want to congratulate the team of law enforcement personnel--from the State Auditor's office, to federal investigators, to the prosecutors in the U.S. Attorney's Office--who worked hard to bring Nicholson to justice. This type of collaboration makes it harder for corruption to persist in Mississippi, so I'm committed to working with our partners to hold fraudsters accountable."


Anonymous said...

Another domino falls.

Anonymous said...

Carl Nickolson was State College Board President. Testimony during the trial was that he received more than $2000.0 per month without having to perform any services, and he failed to report it as income. Also misused business credit card.

Anonymous said...

Jury only out about 2 hours for 4.5 day trial before guilty verdict. Nicholson was loaded up like a big hog, and taken shacked from Courthouse to Stone County. Charles Bolton convicted in 2017 secretly recorded Nicholson incriminating himself.

Anonymous said...

For the full story, their is video recorded live of exerts of the trial, the guilty verdict, and the transport of the convicted CPA tax cheater @ Hattiesburg Patriot Media Facebook page.

Anonymous said...

When a CPA with about 50 years experience commits tax fraud on his personal tax return and knowingly files a false return for a client, You expect for his sentenanced to be enhanced.

Anonymous said...

“Fraud is the daughter of greed.”

Anonymous said...

Jeffery, meet Waffle House. Fry cook needed.

Anonymous said...

Was Nicholson involved in the "Cream Scheme" out of Hattiesburg, or handling tax returns for any of the principals in that scheme?

Anonymous said...

That $2000 a month as College Board President is pennies in relation to the size of the slush fund that the educational industrial complex consists of. All the "boards", IHL, etc. get hundreds of millions from the state to play with, and then hundreds of millions more in federal financial aid to compliment the slush fund, and what have you got? - an environment rife with knowingly deliberate fraud and malfeasance. Community college presidents asking for an Escalade to be purchased for them from endowment funds, and bullying their board of trustees to double their salary and change the minutes to not show why/when, school enrollment and attendance numbers grossly inflated to supplement their schemes....Lamar Adams, BD, and BS are pikers compared to the college/university system. Anybody wanna know why there's no infrastructure money for roads and bridges? It's been blown all in the name of "higher education".....but nobody will say a word, because they're all in on the scam. If Hurst and White really care, we'll be hearing about their deep investigations into every tentacle of education including K-12 and lining up staff/faculty by the thousands to interview what they know.

Anonymous said...

The $2,000.00 per month was payment to Nicholson from Forrest General Hospital to be involved somehow with employee retirement funds.

It is not associated with Nicholson’s IHL board of trustees appointment; however, a close examination of things done by IHL during his tenure, especially while he was board president, might be interesting in light of his current situation.

While on the subject of Forrest General, the Forrest County Board of Supervisors appoints the hospital trustees. One of the county supervisors is Rod Woullard. His brother, Reg Woullard, was appointed a hospital trustee. How this is not a conflict of interest is baffling.

Anonymous said...

Let's not overlook the question that's begging: WHO appointed him to the State College Board? Answer please.

Jimmy Olsen said...

Gotta love these self-serving, patriotic-themed announcements with America The Beautiful playing in the background. Truth, Justice and The American Way. Able To Leap Tall Buildings...

Anonymous said...


Anonymous said...

@10:07 Exactly. It seems a great deal of Mississippi government would meet RICO precedents all over the place.

Anonymous said...

Who appointed him!! Finger which Governor!

Anonymous said...

He was appointed to the IHL board by Kirk Fordice.

Anonymous said...

Damn 8:06. Smoke a joint and calm helicopters everywhere.

Anonymous said...

In K-12 schools, each class is worth about 275K per year. 75K to teacher expense and they cry about can not afford crayons and Kleenex.

Where do this money run off to?

Anonymous said...

10:47, thanks for playing, but no prize. Tax fraud has nothing to do with the State Auditor's office, either when Pickering was there or under Shad White's tenure. Enjoyed having you on the game, but next time at least get an idea what you are commenting about before turning your fingers loose on anything other than yourself.

Anonymous said...

Nicholson struggled getting out of transport van into Courthouse entrance, and he definitely walked funny.

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Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

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