A Birmingham man has been indicted on federal charges accusing him of preparing false tax returns for clients and filing fraudulent returns for himself in an alleged scheme involving tens of millions of dollars in tax refunds.
A federal grand jury in the Northern District of Alabama indicted Michael Shine, 55, of Birmingham, on 30 counts of aiding and assisting in the preparation of a false tax return and three counts of filing a false tax return.
According to the indictment, Shine owned a tax preparation business, Shine’s Professional Services, between 2021 and 2026. Prosecutors allege he prepared or helped prepare returns that falsely claimed clients had qualified geothermal heat pump property costs.
Those claims allegedly led to refunds the clients were not entitled to receive. Prosecutors also allege Shine continued and changed the scheme after the IRS searched his business.
Shine is…
MANAGEMENT & CULTURE (THE “TONE AT THE TOP”)
Fraud thrives in “sloppy” environments where leadership ignores the rules.
- The Fraud Triangle: For fraud to occur, three elements must be present: Pressure (the need for money), Rationalization (thinking “I deserve this”), and Opportunity (weak controls). You can only control the Opportunity.
- Whistleblower Hotline: Provide an anonymous way for staff to report “odd behavior.” Most internal frauds are caught via tips, not audits.
- Background Checks: Conduct credit and criminal record checks for all employees in financial or data-sensitive roles.
- Annual Ethics Training: Make sure every staff member knows that the company has a Zero Tolerance policy toward “borrowing” from petty cash or fudging overtime.