Applewhite was also ordered to pay $9,29 in restitution for his operations in the San Francisco Bay Area and was given a one-year supervised release. Besides operating Applewhite and Co., along with Mason Financial Services, located in Inglewood, Calif., he also owned and operated an H&R franchise in Oakland, Calif. Most returns were prepared from the Inglewood Office, although he also met with clients at the H&R office.

Applewhite was accused of using phony deductions, credits and expenses to hike clients' refunds.