New Haven Man Pleads Guilty to Tax Fraud
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on April 3, 2015, WILLIE E. McKAY, 40, of New Haven, pleaded guilty in New Haven federal court to making a false claim to the Internal Revenue Service.
According to court documents and statements made in court, from as early as 2005 through 2008, McKAY was the pastor of The Love Temple Church, Inc., located at 75 Fresh Meadow Road in West Haven. During that time, McKAY provided people, including those in his congregation, with income tax preparation services. In February 2007, McKAY prepared and electronically filed a fraudulent individual U.S. Individual Income Tax Return, Form 1040, for 2006 of a taxpayer who was a member of his congregation. The tax return listed the address of Love Temple Church as the taxpayer’s home address, which was not accurate, and included a fictitious Form W-2 reflecting inflated wages and withholdings. The return also reflected fictitious deductions for state and personal property taxes, which reduced the taxpayer’s taxable income.
The fraudulent tax return that McKAY prepared reported wages of $47,900 from the State of Connecticut, withholdings of $14,952, and Schedule A deductions for state taxes of $4,359 and personal property tax of $852. Based on the false claim, the IRS issued a refund check in the amount of $9,693.
McKAY knew that the taxpayer was a student working at school and was not entitled to the claimed refund. McKAY also did not identify himself as the preparer of the tax return.
According to the IRS, the taxpayer was entitled to a federal tax refund of only $363.
McKAY is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on June 26, 2015, at which time he faces a maximum term of imprisonment of five years and a fine of up to $250,000. As part of the plea agreement, McKAY agreed to make restitution to the IRS of $9,693. He also acknowledged that he prepared and filed other false tax returns for the 2005 through 2007 tax years, which Chief Judge Hall will consider in imposing a sentence.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division with the assistance of the U.S. Secret Service and U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.