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Tag: PPP Fraud

  • Former LI tax preparer pleads guilty to $12M fraud scheme | Long Island Business News

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    A former based on Long Island pleaded guilty in federal court in on Wednesday to a nearly $12 million scheme.

    Damaris Beltre, who had operated a tax preparation service in Freeport, pleaded guilty to two counts of wire fraud and one count of aiding and assisting in the preparation of false tax returns, the U.S. Attorney’s Office for the Eastern District of New York said.

    The U.S. Attorney said that Beltre had prepared false individual tax returns that caused a total of about $12 million in losses to the Internal Revenue Service () and the Payroll Protection Program (PPP).

    “Beltre brazenly defrauded the government and callously put her clients in jeopardy to line her own pockets,” U.S. Attorney Joseph Nocella, Jr., said in a news release about the guilty plea.

    “Today’s guilty plea should serve as a warning to anyone who, like this defendant, views federal programs and the federal treasury as their own personal piggybanks, that you will be arrested and vigorously prosecuted,” he added.

    “Beltre was a shady tax preparer with a complete disregard for U.S. law or the American public she failed when she fraudulently claimed tens of millions of dollars in COVID19-related tax credits,” Internal Revenue Service-Criminal Investigation New York Special Agent in Charge Harry Chavis said in the news release. “She hoarded funds meant for those with a legitimate need just to fatten her own pockets. With today’s plea, she can move forward with facing the full consequences of her actions.”

    Officials said that from January 2021 to April 2024, Beltre owned and operated multiple Freeport-based financial service businesses and personally prepared or supervised the preparation of false individual income tax returns and related forms submitted to the IRS. In those filings, Beltre claimed tens of millions in COVID-19 and motor fuel tax credits to generate improper refunds. Clients paid more than $1 million in fees for these services, often a percentage of the refunds. In April 2023, an undercover federal agent hired Beltre, who filed a return claiming a $14,243 refund instead of the $205 actually owed, charging $2,200, officials said. This years-long scheme led the IRS to issue nearly $11 million in improper refunds and lose additional tax revenue.

    And officials said that separately, Beltre was involved in a scheme. They said that from April 2020 to July 2022, Beltre filed false payroll reports and tax returns for her corporate clients in order to fraudulently obtain about $1 million in PPP loans from the U.S. Small Business Administration. She used the proceeds, along with funds from the tax-preparer fraud scheme, for personal expenses, including debts, a Caribbean home, a car and jewelry.

    When sentenced, Beltre faces a maximum sentence of 53 years’ imprisonment, as well as restitution of approximately $12 million.

     


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    Adina Genn

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  • Bartending, marketing services part of suburban Charlotte couple’s $1M COVID scam

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    A couple who previously resided in the Charlotte region pleaded guilty to federal charges for stealing more than $1.4 million in COVID relief funds, authorities announced Friday.

    Tatiana Vazquez, 39, pleaded guilty to wire fraud conspiracy affecting a financial institution and conspiracy to defraud the government, according to the U.S. Attorney’s Office for the Western District of North Carolina. Her co-conspirator, 41-year-old Marquise Highsmith, pleaded guilty to the same charges on Oct. 7.

    The pair previously lived in Midland in Cabarrus County. They also resided in New York.

    According to court documents, the fraudulent activity occurred in two waves. From May 2020 to January 2022, Vazquez, Highsmith and several associates submitted fraudulent applications to financial institutions and the Small Business Administration. These applications sought loans through the Paycheck Protection and Economic Injury Disaster Loan programs.

    To secure the funds, the group provided falsified information, including fabricated tax filings and inflated employee totals.

    Highsmith operated transportation and delivery services and a business called MRHReality Group. Vazquez ran a business called Jadore Dream Bartending Services and 5 Star Securities Services. Together, they also ran a business called Transportation Marketing Services, records show.

    As a result, the couple obtained more than $450,000.

    Prosecutors noted that after receiving the money, the defendants filed loan forgiveness applications containing further inaccuracies, which led to the dismissal of some debt.

    The scheme evolved between July 2022 and February 2023, when Vazquez and Highsmith targeted IRS-operated programs, including the Employee Retention Credit and the Sick Leave and Family Leave Credit. These programs were designed to provide tax credits to legitimate businesses for employment taxes and wages.

    By filing false tax forms, the defendants collected over $1 million in additional refunds to which they were not entitled.

    Court documents say the funds were used to fund their lifestyle and on luxury goods, although the documents did not provide additional details on the spending.

    Vazquez and Highsmith were released on bond; a sentencing date has not yet been scheduled.

    Widespread COVID fraud in the Charlotte Region

    The guilty pleas arrive as federal prosecutors continue to pursue pandemic-related fraud across the Western District of North Carolina.

    The total misuse of COVID funds in the district, which covers the Charlotte metro area, includes tens of millions, The Charlotte Observer previously reported. To date, more than 30 individuals have been prosecuted and convicted.

    Among the pending cases is that of Charlotte City Councilwoman Tiawana Brown.

    In May, a federal grand jury indicted Brown and her two daughters for allegedly orchestrating a $124,000 COVID fraud scheme. Prosecutors allege the trio used the funds for personal expenses, including $15,000 for a private birthday party for Brown.

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    Chase Jordan

    The Charlotte Observer

    Chase Jordan is a business reporter for The Charlotte Observer, and has nearly a decade of experience covering news in North Carolina. Prior to joining the Observer, he was a growth and development reporter for the Wilmington StarNews. The Kansas City native is a graduate of Bethune-Cookman University.

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    Chase Jordan

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  • BOLO: Cannabis Qui Tam Actions – Cannabis Business Executive – Cannabis and Marijuana industry news

    BOLO: Cannabis Qui Tam Actions – Cannabis Business Executive – Cannabis and Marijuana industry news

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