NEWARK, N.J. - A Keasbey, New Jersey, tax preparer was indicted today for allegedly using false information to increase his clients’ tax refunds and secretly diverting a portion of those funds into accounts that he controlled, U.S. Attorney Craig Carpenito announced.
David Patterson, 37, is charged by indictment with 16 counts of aiding and abetting in the filing of false tax returns. Patterson will be arraigned at a later date.
According to the indictment:
Patterson owned D&D Tax Service LLC, a tax preparation business located in Keasbey. Patterson allegedly prepared multiple fraudulent tax returns on behalf of his clients by falsifying their income, charitable contributions, employee business expenses, and education costs, all so his clients would receive higher refunds than those to which they were actually entitled. Patterson then diverted a portion of the tax refunds to bank accounts he controlled without his clients’ knowledge or consent.
According to the indictment, Patterson allegedly prepared 53 phony tax returns on behalf of 19 clients for tax years 2010 through 2015, which resulted in a tax loss to the United States of $290,321.
The false filing charges each carry a maximum potential penalty of three years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson in Newark, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation.
The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the U.S. Attorney’s Office Asset Recovery and Money Laundering Unit.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Patrick Mullin Esq., Fort Lee, New Jersey
Source: U.S. Department of Justice, Office of the United States Attorneys
