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Newark, new jersey tax preparer pleads guilty to defrauding the iRS by assisting in the preparation of false tax returns



FOR IMMEDIATE RELEASE
July 21, 2011


 

NEWARK, N.J. – A Newark tax preparer pleaded guilty today to preparing numerous false individual income tax returns on behalf of his customers, resulting in a significant tax loss to the IRS, U.S. Attorney Paul J. Fishman announced.

Carlo St. Jean, 40, pleaded guilty mid-trial to Counts One, Three, Six, Nine, 10, 11, and 13 of the superseding Indictment against him. Each count charged the defendant with aiding and assisting in the preparation and presentation of false and fraudulent tax returns to the IRS – from 2004 through 2006. St. Jean entered his guilty plea before U.S. District Judge Stanley R. Chesler, who was presiding over the trial in Newark federal court.

According to documents filed in this case and statements made in court:

From January 2003 through April 2006, St. Jean was the sole owner and operator of Grand Travel Inc. Discount Timeshare, a commercial tax preparation business in Newark. During this time period, St. Jean met with individual taxpayers, including six customers and an individual he later learned was an undercover IRS agent. St. Jean counseled his customers in the preparation of false returns, including Schedule A deductions which were fabricated and inflated, in order for his customers to obtain refunds from the IRS in amounts greater than they were entitled to receive, resulting in a tax loss of between $30,000 and $80,000. The phony deductions included medical and dental expenses, charitable contributions, and unreimbursed employee expenses

Each of the seven counts to which St. Jean pleaded guilty carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for October 21, 2011.

U.S. Attorney Fishman credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Victor W. Lessoff, for the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Seth Kosto and Aaron Mendelsohn of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

11-292                                                                                         

Defense counsel: Robert T. Pickett Esq., West Orange, N.J.

St. Jean, Carlo Superseding Indictment

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