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Justice News

Department of Justice
U.S. Attorney’s Office
District of New Jersey

Tuesday, May 19, 2015

South Jersey Tax Preparer Pleads Guilty To Tax Fraud

CAMDEN, N.J. – A Salem County, New Jersey, tax preparer today admitted her role in a conspiracy to prepare false and fraudulent income tax returns, U.S. Attorney Paul J. Fishman announced.

Grace Garrett, 63, of Pittsgrove, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging her with conspiring to aid and assist others in the preparation of false and fraudulent tax returns for the tax years 2007 through 2011.

Garrett was a tax preparer at Pender Tax Services in Rosenhayn, New Jersey, through which she and others committed crimes resulting in tax losses of more than $340,000.

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

For the tax years 2007 through 2011, Garrett and a conspirator sought to generate increased referrals, enhance their business, and enrich themselves by preparing and filing income tax returns based on false information. They used a number of fraudulent practices, including falsely claiming a filer was a “head of household;” inventing and inflating deductions; creating fictitious dependents; and creating false credits for education and childcare.

Although taxpayers generally met with Garrett or the conspirator to provide information to prepare their tax returns, it was routinely the conspirator whose name appeared as preparer of the return. The bogus returns resulted in a tax loss to the government of more than $340,000.

The conspiracy charge to which Garrett pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 11, 2015.

U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office in Camden.

Defense counsel: Christopher O’Malley Esq., Camden

garrett_grace_information.pdf (304.81 KB)


Press Release Number: 
Updated February 24, 2016