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Press Release

Tax Preparer Sentenced For Federal Tax Violations

For Immediate Release
U.S. Attorney's Office, Eastern District of Texas

Department of Justice
Office of Public Affairs

SHERMAN, Texas - A Tax Preparer has been sentenced to federal prison for tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.   

Wellington Mandhlazi pleaded guilty on May 16, 2013 to aiding and assisting in the preparation of fraudulent tax returns and was sentenced to 21 months in federal prison on Dec. 16, 2013 by U.S. District Judge Ron Clark.  Mandhlazi was also ordered to pay restitution in the amount of $147,851.00. 

According to the court documents, in 2009, Mandhlazi operated an income tax preparation business.  Mandhlazi admitted that he assisted in the preparation of false federal income tax returns and included false items for educational expenses and education tax credits.  Mandhlazi also admitted that his false statements were made for the purpose of defrauding the Internal Revenue Service. 

The estimated tax loss related to the false federal income tax returns prepared as a result of Mandhlazi’s fraudulent conduct, on behalf of himself and other taxpayers, was $147,851.00.  Mandhlazi must report on or before Feb. 4, 2014, to begin serving his prison sentence. 

This case was investigated by the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Andy Williams. 

Updated March 12, 2015