San Francisco Tax Preparer Indicted For Wire Fraud, Money Laundering
For Immediate Release
U.S. Attorney's Office, Northern District of California
SAN FRANCISCO - A federal grand jury indicted Cary S. Collins on charges of wire fraud, money laundering, and preparing a false tax return, announced Acting United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas McMahon.
According to the indictment, unsealed today, Collins, 53, of San Francisco, is alleged to have engaged in a scheme to defraud clients of more than $1.3 million, and used those funds for personal expenditures. For this scheme, the indictment alleges four counts each of wire fraud, in violation of 18 U.S.C. § 1343, and money laundering, in violation of 18 U.S.C. § 1957. The indictment also alleges that Collins assisted in preparing a false tax return for a client, in violation of 26 U.S.C. § 7206(2).
Collins was arrested at his San Francisco home and made his initial appearance in federal court in San Francisco on November 18, 2015. The Honorable Laurel Beeler, U.S. Magistrate Judge, ordered Collins released on a $250,000 secured bond. Collins’ next scheduled appearance is at 2:30 p.m. on December 8, 2015, for an initial appearance before the Honorable Richard Seeborg, U.S. District Court Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of wire fraud, the defendant faces a maximum sentence per count of 20 years’ imprisonment, a $250,000 fine, 3 years of supervised release, a $100 special assessment, restitution, and criminal forfeiture. If convicted of money laundering, the defendant faces a maximum sentence per count of 10 years’ imprisonment, a $250,000 fine, 3 years of supervised release, a $100 special assessment, restitution, and criminal forfeiture. If convicted of assisting in the preparation of a false tax return, the defendant faces a maximum sentence of 3 years’ imprisonment, a $100,000 fine; 3 years of supervised release, a $100 special assessment, and restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Hartley M. K. West is prosecuting the case with the assistance of Hayden Leadford and Trina Khadoo. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Updated April 19, 2017