Nicholas J. Ganjei United States Attorney for the Southern District of Texas | U.S. Attorney for the Southern District of Texas
A Houston man has pleaded guilty to committing tax fraud over seven years, resulting in losses amounting to $250,000, according to an announcement by U.S. Attorney Nicholas J. Ganjei.
Joseph Patrick Butler, the accused, admitted to filing fraudulent joint Form 1040 U.S. Individual Income Tax Returns between 2013 to 2020. Butler received inflated tax refunds by falsely reporting wages and tax withholdings through shell companies he created to issue W-2 forms to himself. However, in reality, Butler earned no such wages, and no taxes had been withheld.
The fraudulent activities led to a tax loss exceeding $260,000 in refunds. Butler's sentencing is set for July 18, when U.S. District Judge Sim Lake will determine his penalty, which could include up to three years in federal prison and a fine of up to $250,000.
Butler remains on bond pending the sentencing hearing. The IRS Criminal Investigation was responsible for the investigation, with Assistant U.S. Attorneys Brad Gray and Shirin Hakimzadeh handling the prosecution.
