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Press Release

Middlesex County, New Jersey, Tax Preparer Charged With Additional Tax Fraud Counts

For Immediate Release
U.S. Attorney's Office, District of New Jersey

NEWARK, N.J. – A Keasbey, New Jersey, tax preparer who was indicted May 3, 2018, for allegedly using false information to increase his clients’ tax refunds and secretly diverting a portion of those funds into accounts that he controlled was charged today with 11 new tax fraud counts, U.S. Attorney Craig Carpenito announced.

A federal grand jury returned a superseding indictment against David Patterson, 37, adding eight counts of aiding and abetting in the filing of false tax returns and three counts of failure to file tax returns. He was originally charged by indictment with 16 counts of aiding and abetting in the filing of false tax returns. Patterson will be arraigned on the new indictment at a date to be determined.

According to the indictment:

Patterson owned D&D Tax Service LLC, a tax preparation business located in Keasbey. Patterson allegedly prepared multiple fraudulent tax returns on behalf of his clients by falsifying their income, charitable contributions, employee business expenses, and education costs, all so his clients would receive higher refunds than those to which they were actually entitled. Patterson then diverted a portion of the tax refunds to bank accounts he controlled without his clients’ knowledge or consent. He also failed to file an individual tax return and pay federal income taxes for calendar years 2013 through 2015.

The false filing counts each carry a maximum potential penalty of three years in prison and a $250,000 fine. The failure to file counts each carry a maximum potential penalty of up to one year in prison and a $100,000 fine.

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 charges.

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.

The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

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

Updated October 18, 2018

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Topic
Tax
Press Release Number: 18-359