KANSAS CITY, KAN. ? A tax preparer has been indicted on charges of preparing false income tax returns when he worked with a company accused by the state of running an illegal pyramid scheme, U.S. Atty. Eric Melgren said Thursday.

The 40-count indictment was returned Wednesday by a federal grand jury against Alexander Anthony Federico, 50, of Wichita.

Prosecutors allege that Federico assisted, counseled and advised the preparation of false and fraudulent federal tax returns while working with a Topeka-based company called Renaissance, the Tax People Inc. Improper deductions claimed by clients ranged in size from $1,275 to $51,682, prosecutors said.

Federal authorities have said Renaissance defrauded its clients of more than $100 million. The Kansas Attorney General’s Office obtained an injunction in May 2001 revoking the company’s ability to operate in the state.

Renaissance was a marketing agency that claimed to help clients reduce their tax bills. The company sold a “tax-relief system” instructing home-based business owners on how to take tax deductions on their business, which usually involved selling the Renaissance tax relief system. Clients were encouraged to sell the tax system to others.

Several other people associated with Renaissance have already been prosecuted.

Thomas W. Steelman, a former Internal Revenue Service agent who worked as a pitchman for the company, pleaded guilty in April 2002 to one count of conspiracy to commit fraud and nine counts of aiding and assisting in the filing of false income tax returns. He is awaiting sentencing.

In August, tax preparer Elizabeth Crotts, of Wichita, was indicted on 37 counts of assisting taxpayers in filing false and fraudulent federal income tax returns and one count of obstruction for allegedly submitting false affidavits.

Michael Cooper, who headed the company, refused earlier this year to return to Topeka after traveling with a judge’s permission to Mexico. Cooper said he needed to go to Mexico to recover the proceeds from the sale of a house and condominiums in Puerto Vallarta.

Federico is scheduled to make his first court appearance Dec. 18. If convicted, Federico faces a maximum of three years in federal prison without parole on each count.