Man Sent to Prison for Preparing False Income Tax Return

HOUSTON – A local income tax return preparer has been ordered to prison following his conviction of preparing a false U.S. Individual Income Tax Return for a client, announced Acting U.S. Attorney Abe Martinez. Chester Swanson pleaded guilty July 17, 2017.

Today, U.S. District Judge Keith Ellison handed Swanson an 18-month sentence to be followed by one year of supervised release. He was further ordered to pay a $244,817 in restitution.

Swanson admitted in the plea agreement filed in the record of the case that he prepared at least 37 false income tax returns for clients with a resulting intended income tax harm to the United States of more than $244,000. He further admitted the false items he placed on the income tax return underlying his guilty plea included false amounts of unreimbursed medical and dental expenses, false amounts of gifts to charity, false amounts of unreimbursed employee expenses, and false amounts of alleged losses from a sole proprietorship. 

Swanson operated his income tax preparation business under the name of Chester’s Mobile Tax Service in which he met clients at various locations in Houston to prepare their income tax returns for them. Swanson admitted he also used the name Hollywood Business SVC Investments in his tax preparation business.

Swanson has agreed to never again prepare income tax returns for others.   

Swanson was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.

IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.