DENVER - Gerardo Herrera, age 63, of Denver, Colorado pled guilty today before U.S. District Court Judge William J. Martinez to corruptly endeavoring to obstruct or impede the due administration of the Internal Revenue Code announced United States Attorney Jason R. Dunn and IRS - Criminal Investigation Special Agent in Charge Andy Tsui. Herrera’s sentencing is scheduled for April 1, 2020.
According to the Information and plea agreement, between January 2011 and May 2017, Herrera operated Lobo Multiservicios (LMS) in the Denver area assisting taxpayers submit personal income tax returns to the IRS. LMS catered primarily to Hispanic taxpayers and used local media to advertise its tax preparation services.
As part of the scheme, Herrera prepared and submitted or instructed other LMS employees to prepare and submit false tax returns electronically using LMS’ unique electronic filer information number (EFIN). On each occasion, Herrera provided the false information submitted to the IRS to ensure the taxpayer(s) would receive a refund from the IRS in an amount higher than they were entitled to claim if the tax return reflected truthful and accurate information.
The IRS obtained a permanent injunction against Herrera and LMS on January 7, 2016 barring Herrera and his businesses from preparing tax returns or assisting others in the preparation of tax returns. Approximately one month after obtaining the injunction, the IRS discovered Herrera had opened a new office and resumed preparing tax returns using new business names, including “Gabby Professional Service", “Los Lobos Professional", “FaroMultiservicios LLC" and “Lizeth Professional Service". Throughout 2015, Herrera or his companies acting at his direction used other electronic filing identification numbers (EFIN) associated with N.V. without N.V.’s knowledge.
This case is being investigated by the Internal Revenue Service - Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Jaime Pena.
Source: U.S. Department of Justice, Office of the United States Attorneys
