Operator Of Tax Preparation Business Indicted On Tax Fraud And Tax Evasion
NEWARK, N.J. – A Union County, New Jersey, man was arrested today by federal agents on charges of tax fraud and tax evasion, U.S. Attorney Craig Carpenito announced.
Terrance LeGall, 64, of Linden, New Jersey, is charged by indictment with 11 counts of aiding and abetting the preparation of a false tax return and eight counts of tax evasion for failure to file personal and corporate income tax returns. LeGall is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to documents filed in this case and statements made in court:
Since 2009, LeGall was the sole operator of LeGall Group Inc. (LGI), a tax return preparation business in Union County, New Jersey. From 2013 to 2017, LeGall prepared false tax returns for his clients. He allegedly included fake charitable contributions, unreimbursed business expenses and business losses that he knew his clients had not actually incurred. These returns resulted in a reduction in his clients’ tax liability and fraudulent refunds from the IRS. LeGall acted as a “ghost preparer,” in that although he prepared income tax returns for his clients, he did not identify himself anywhere on the returns as a preparer, and electronically filed the returns in a manner that made it look like the returns had been filed by the taxpayers. LeGall also evaded the assessment of federal taxes in excess of $600,000 by willfully failing to file personal and corporate tax returns for the tax years 2012 through 2015. LeGall attempted to hide his source of income by depositing the proceeds of his tax preparation business into bank accounts belonging to his family members.
Each count of aiding and abetting in the preparation of false tax returns carries a maximum prison sentence of three years and a $250,000 fine. Each count of failure to file personal and corporate income tax returns carries a maximum prison sentence of five years and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Sammi Malek of the Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: John Yauch Esq. Assistant Federal Public Defender, Newark