Middlesex County, New Jersey, Tax Preparer Admits Fraud

NEWARK, N.J. – A Keasbey, New Jersey, tax preparer today admitted filing a false tax return for two clients and failing to file a tax return, U.S. Attorney Craig Carpenito announced.

David Patterson, 37, was indicted in October 2018 and pleaded guilty today before U.S. District Judge Esther Salas in Newark federal court to Count 24, aiding and assisting in the preparation of a false income tax return, and Count 25, failure to file a tax return for 2013, of the superseding indictment.

According to documents filed in this case and statements made in court:

Patterson owned D&D Tax Service LLC, a tax preparation business located in Keasbey. He admitted preparing a fraudulent tax return on behalf of two clients for tax year 2012 in which he falsified the clients’ medical and dental expenses, gifts to charity and unreimbursed employee expenses. He also admitted failing to file an individual tax return and pay federal income taxes for calendar year 2013.

The false filing count carries a maximum potential penalty of three years in prison and a $250,000 fine. The failure to file count carries a maximum potential penalty of up to one year in prison and a $100,000 fine. For purposes of sentencing, Patterson admitted to aiding and assisting in the preparation of 23 additional false tax returns and failing to file tax returns for calendar years 2014 and 2015, resulting in an aggregate loss of $290,321. Sentencing is scheduled for Aug. 12, 2019.

U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, the Department of Justice Tax Division, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the U.S. Attorney’s Office Asset Recovery and Money Laundering Unit and Trial Attorney Eric Powers of the Department of Justice Tax Division.

Defense counsel: James Friedman Esq., New Brunswick, New Jersey