Owner of Former Tax Service Pleads Guilty to Aiding and Assisting in the Filing of False Federal Income Tax Returns
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on October 13, 2017, Gabriel Nwanosike (45) of Milwaukee pleaded guilty to two-counts of aiding and assisting in the filing of false federal income tax returns, in violation of Title 26, United States Code, Section 7206(2).
According to documents filed in court, Nwanosike operated a Milwaukee tax return business under the name CBeyond Global Resources, LLC, doing business as CBeyond Tax Services. During the period from January 2013 through April 15, 2015, Nwanosike prepared and submitted numerous false income tax returns to IRS fraudulently seeking tax refunds of more than $550,000. To accomplish this, Nwanosike filed tax returns falsely claiming that the taxpayer had earned self-employment income, which fraudulently increased the taxpayer’s Earned Income Credit and the resulting fraudulent tax refunds.
More particularly, during this period, Nwanosike prepared and filed more than 700 tax returns with the IRS. Of the returns, more than 300 included a Schedule C reporting business income, but no expenses, from a sole proprietorship.
As part of the plea agreement, Nwanosike agreed to pay the IRS restitution of $197,777.76, which represents the amount he collected in fees in preparing the tax returns filed with the IRS. He faces up to six years imprisonment and a $500,000 fine. Nwanosike’s
sentencing has been scheduled for January 25, 2018, before the Honorable Pamela Pepper, U.S. District Judge.
This case was investigated by the IRS Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Matthew Jacobs.
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For Additional Information Contact:
Public Information Officer Dean Puschnig