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Press Release

New Kensington Resident Pleads Guilty to Preparing False Tax Returns For Clients

For Immediate Release
U.S. Attorney's Office, Western District of Pennsylvania

PITTSBURGH, PA - A resident of New Kensington pleaded guilty in federal court to a charge of preparing false tax returns for clients, United States Attorney Eric G. Olshan announced today.
Harvey Smith, Jr., 58, of New Kensington, PA pleaded guilty to one count before United States District Judge J. Nicholas Ranjan.

In connection with the guilty plea, the court was advised that Smith operated a tax return preparation business through which he prepared false tax returns for his clients. Smith falsely reported that his clients incurred educational expenses and business expenses they did not in fact incur, in an attempt to obtain larger tax refunds for his clients. Smith then frequently took his fees, which reached as high as $1,000 per return, from the inflated refunds. In total, Smith’s conduct resulted in a loss to the government of approximately $138,426.

Judge Ranjan scheduled sentencing for 11 a.m. on February 5, 2024. The law provides for a total sentence of 3 years in prison, a fine of $250,000 or twice the gross gain or loss from the offense, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court released Smith on his personal recognizance.

Assistant United States Attorneys Stephen R. Kaufman and William B. Guappone are prosecuting this case on behalf of the government.

The Internal Revenue Service – Criminal Investigation conducted the investigation that led to the prosecution of Harvey Smith.

Updated October 23, 2023

Topic
Tax