Tax Preparer Sentenced To 30 Months In Prison For Tax Fraud Scheme And Witness Tampering

NEWARK – A Plainfield, New Jersey, tax preparer was sentenced today to 30 months in prison for conspiring to defraud the IRS, falsifying his tax returns, and witness tampering, U.S. Attorney Craig Carpenito announced.

Samuel Davis Jr., 54, previously pleaded guilty before U.S. District Court Judge Susan D. Wigenton to a three-count information charging him with conspiring to defraud the IRS, filing false personal tax returns, and witness tampering. Judge Wigenton imposed the sentence today in Newark federal court.

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

Davis was an active detective sergeant in the N.J. State Police while also owning and operating a tax preparation business, Get Organized Tax & Accounting (GOTA). He retired from the state police in 2016 after 28 years. For tax years 2011 to 2016, Davis and his conspirator, Kyna Felder-Ruiz, prepared false individual income tax returns for various GOTA clients. They used a number of fraudulent practices, including falsely claiming deductions, fabricating educational credits, and submitting fake receipts, in order to obtain refunds for their clients in amounts substantially greater than those to which the taxpayers were entitled.

For tax years 2012 through 2014, Davis also filed false personal income tax returns by underreporting business income that he derived from GOTA, defrauding the IRS of tens of thousands of dollars in taxes.

In October 2018, Davis discovered that his son had received a subpoena to appear and testify before a grand jury, and he attempted to persuade his son to provide false testimony.

In addition to the prison term, Judge Wigenton sentenced Davis to three years of supervised release, fined him $10,000 and ordered restitution of $71,558 to the IRS. Felder-Ruiz previously pleaded guilty and is scheduled to be sentenced Oct. 31, 2019, for her role in the scheme.

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 sentencing.

The government is represented by Assistant U.S. Attorney Ryan L. O’Neill of the U.S. Attorney’s Office’s Organized Crime and Drug Enforcement Task Force Unit.

Anyone who believes they may have been a victim of this defendant can contact IRS-Criminal Investigation at (732) 761-6439.

Defense counsel; Thomas R. Ashley Esq., Newark