Essex County, N.J., Tax Preparer Admits To Tax Fraud That Caused More Than $99,000 Loss
NEWARK, N.J. - A Bloomfield, New Jersey, woman who operated a tax return preparation business admitted today that she caused at least 37 fraudulent income tax returns to be filed with the IRS, causing a total tax loss of $99,864 to the United States, U.S. Attorney Paul Fishman announced.
Daidry Montanez, 41, pleaded guilty before U.S. Magistrate Judge Michael A. Hammer in Newark federal court to four counts of aiding and assisting in the filing of false federal income tax returns for tax years 2009, 2010, 2011 and 2012.
According to the information and statements made in court:
Montanez owned and operated a tax preparation business called DM Multiservices, which she ran from a storefront in Newark. On behalf of her clients, she prepared false and fraudulent individual income tax returns that contained either falsely claimed or fabricated deductions, including fictional business expenses, such as rent or lease of other business property, supplies and travel. Also included within the tax returns were purported deductions for home mortgage interest and points, state or local income tax, and unreimbursed employee expenses. Montanez used the fraudulent deductions to substantially reduce her clients’ taxable income on their individual federal income tax returns, which resulted in her clients receiving tax returns that were larger than they were due.
Montanez falsified clients’ 2009, 2010, 2011 and 2012 individual federal income tax returns. She then caused these false and fraudulent individual federal income tax returns to be filed with the IRS, resulting in a total tax loss of more than $99,864 for 37 clients.
Each of the four tax counts carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing before U.S. District Judge Faith Hochberg is scheduled for Nov. 6, 2014.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, the inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria Kelokates and special agents of the U.S. States Secret Service, under the direction of Special Agent in Charge James Mottola, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the U.S. Attorney’s Office General Crimes Unit.
Defense counsel: Arlindo B. Araujo Esq., Newark