Accountant Sentenced For Assisting In Preparing False Income Tax Returns

HOUSTON - John E. Carter, a local accountant and income tax return preparer, has been ordered to prison following his multiple convictions of willfully aiding and assisting in the preparation and presentation of false income tax returns, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI). A federal jury convicted Carter in February 2014 following two days of trial. 

Today, U.S. District Judge Lynn Hughes, who presided over the trial, handed Carter a total sentence of 41 months in prison to be immediately followed by one year of supervised release. He was further ordered to pay a $132,477 in restitution to the IRS.

At trial, the jury heard that Carter prepared tax returns for his clients that claimed false deductions for large charitable contributions of appreciated art. The evidence proved the taxes owed to the U.S. on the five tax returns in question was more than $400,000. 
 
Carter was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.

This matter was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorneys Charles J. Escher and John R. Braddock.