New York City Tax Preparer Charged with Preparing False Tax Returns
A federal grand jury in the Eastern District of New York returned an indictment yesterday against a Staten Island, New York, tax return preparer and business owner, charging him with 31 counts of aiding and assisting in the preparation of false federal income tax returns and three counts of filing false personal federal income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the allegations in the indictment, Alabi Gbangbala was the operator of Broadfield, a tax return preparation business located in Staten Island. For tax years 2008 and 2009, Gbangbala allegedly prepared false individual income tax returns for Broadfield clients by, among other things, failing to report accurate exemptions, falsifying business receipts and losses on Schedules C and inflating or fabricating charitable contributions and unreimbursed employee expenses. Gbangbala also filed false individual income tax returns on behalf of himself for tax years 2008 through 2010, in which he failed to disclose his total income for each calendar year.
If convicted, Gbangbala faces a statutory maximum sentence of three years in prison and a fine of $250,000 on each count.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Christopher O’Donnell and Mark McDonald of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office for the Eastern District of New York for their assistance.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceeding.
Additional information about the Tax Division and its enforcement efforts may be found on the division website.