LR man pleads guilty in coal-credit tax scheme

A Little Rock man pleaded guilty Wednesday to federal charges tied to a scheme to sell fraudulent refined-coal tax credits and will forfeit millions in cash and property from the sales, authorities said.

U.S. Attorney for the Eastern District of Arkansas Christopher Thyer said in a statement that Stephen K. Parks, 61, pleaded guilty to a wire fraud charge during a hearing before U.S. District Judge J. Leon Holmes. He would receive 27 months in prison if the plea agreement is accepted at a later hearing.

Authorities said Parks formed a company, Global Coal LLC, and "approved and facilitated the sale of nonexistent Global Coal refined coal tax credits" despite the company having never refined or sold any coal, the statement said.

"Parks subsequently used a large portion of the proceeds of that sale for his personal use and the use of his family," the statement said, noting that the plea deal also requires $845,000 in restitution to the IRS as well as forfeiture of $7.5 million in cash, jewelry and property obtained through the fraudulent sales.

“IRS-Criminal Investigation is committed to unraveling complex fraud schemes,” IRS Special Agent in Charge Christopher A. Henry said in the statement. “We are proud to work with our law enforcement partners to investigate and prosecute individuals who attempt to enrich themselves by fraudulent means, and the IRS will continue to work to identify and prosecute these types of schemes.”

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