Earlier today in Central Islip federal court, Damaris Beltre, a former tax preparer from Freeport, New York, pleaded guilty to two counts of wire fraud and one count of aiding and assisting in the preparation of false tax returns. The plea was entered before United States District Judge Sanket J. Bulsara. Beltre could face up to 53 years in prison and restitution payments of about $12 million.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Harry T. Chavis, Jr., Special Agent in Charge at IRS-Criminal Investigation New York, announced the plea.
“Beltre brazenly defrauded the government and callously put her clients in jeopardy to line her own pockets,” stated United States Attorney Nocella. “Today’s guilty plea should serve as a warning to anyone who, like this defendant, views federal programs and the federal treasury as their own personal piggybanks, that you will be arrested and vigorously prosecuted.”
Nocella also thanked the United States Customs and Border Protection New York Field Office, the Freeport Police Department, and the U.S. Small Business Administration for their help with the case.
“Beltre was a shady tax preparer with a complete disregard for U.S. law or the American public she failed when she fraudulently claimed tens of millions of dollars in COVID-19-related tax credits. She hoarded funds meant for those with a legitimate need just to fatten her own pockets. With today’s plea, she can move forward with facing the full consequences of her actions,” stated IRS-CI New York Special Agent in Charge Chavis.
According to court filings and statements made during Beltre’s guilty plea proceeding, she owned several businesses offering tax preparation and financial services in Freeport. From January 2021 through April 2024, Beltre personally prepared or supervised employees preparing fraudulent individual income tax returns for clients submitted to the IRS.
The fraudulent returns listed false dependents and improperly claimed large amounts of COVID-19-related tax credits and motor fuel income tax credits to reduce liability or secure refunds not owed. Clients paid over $1 million in fees for these services—often calculated as a percentage of any refund received. In one example from April 2023, an undercover agent hired Beltre; instead of owing $205 as would have been accurate, Beltre prepared a return claiming more than $14,000 in refunds using false information and charged $2,200 for this service.
The scheme led to nearly $11 million being issued by the IRS as improper refunds to clients while millions more went uncollected due to falsely reduced liabilities.
In addition to this scheme, between April 2020 and July 2022 Beltre also engaged in Paycheck Protection Program (PPP) fraud by submitting false payroll reports and income tax returns on behalf of corporate clients seeking loans from the Small Business Administration totaling around $1 million. She used proceeds from both schemes for personal expenses including debt payments, buying property in the Caribbean, purchasing a car and jewelry.
The case is being handled by prosecutors from the Criminal Section of the Long Island Division within the U.S. Attorney’s Office for the Eastern District of New York, which prosecutes federal crimes across Brooklyn, Queens, Staten Island, Nassau County and Suffolk County while providing victim assistance services (source). Assistant U.S. Attorney Charles P. Kelly leads prosecution efforts with support from Paralegal Specialist Samantha Schroder and Victim Witness Coordinator Stephanie Marroquin.
Damaris Beltre
Age: 58
Freeport, New York
E.D.N.Y Docket No.: 25-CR-081 (SJB)
