Owners of Upper Darby Tax Preparation Service Sentenced to Prison for Scheme to Create False Tax Returns
PHILADELPHIA – United States Attorney William M. McSwain announced that Omar Faruq, 37, and Omar Ali, 36, both of Pennsauken, New Jersey, were sentenced today by United States District Court Judge Nitza I. Quiñones for their roles in conspiring to file false tax returns while operating a tax preparation business in Upper Darby, Pennsylvania. Judge Quiñones sentenced Omar Faruq to 24 months’ imprisonment, three years’ supervised release, and restitution of $688,362; she sentenced Omar Ali to 18 months’ imprisonment, three years’ supervised release, and restitution of $573,322. Faruq and Ali must pay the restitution to the United States Department of Treasury.
Codefendants Faruq and Ali pleaded guilty in June 2019 to filing false tax returns on behalf of their clients at Omar Consultancy Inc., a tax service they operated with offices in Pennsylvania and New Jersey. In filing tax returns for their clients, Faruq and Ali consistently used false filing status, Schedule A deductions and expenses, Schedule C business income and losses, and fictitious credits to decrease a client’s tax liabilities, all of which resulted in increased refunds for many of their clients. Faruq and Ali then diverted portions of these refunds into their own bank accounts as part of the conspiracy.
“These defendants – professional tax preparers – committed fraud and stole from the United States government, while duping their clients,” said U.S. Attorney McSwain. “The defendants also stole from the pockets of all taxpayers who do the right thing every April and pay their fair share of taxes. With tax season approaching, these sentencings serve as a warning for anyone considering this type of fraud.”
“With this year’s filing season just around the corner, today’s sentencings are a good reminder of how important it is to do your homework when choosing a professional tax preparer,” stated John R. Tafur, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office. “Taxpayers should be selective in choosing a tax preparer and have confidence knowing that person will prepare accurate tax returns and safeguard their financial information. Those tax preparers who choose to abuse our tax system will end up on the radar screen of IRS Criminal Investigation.”
The case was investigated by Internal Revenue Service, Criminal Investigations, and is being prosecuted by Assistant United States Attorney Richard P. Barrett.