Fullerton Tax Preparer Pleads Guilty in $1.1M Fraud Scheme

Michael Raymond Martinez, 48, of Fullerton, has admitted to running a brazen tax refund scam that bilked the U.S. Treasury out of more than $1.1 million. Martinez pleaded guilty yesterday before U.S. District Judge Beverly Reid O’Connell to one count of aiding and assisting in the preparation and presentation of false federal income tax returns—a crime that unfolded over six years and left a trail of financial wreckage.

Operating under the names Your Home Tax Service, Great Tax Services, and Great Tax Solutions, Martinez presented himself as a certified public accountant and even claimed to be a former IRS agent—a lie meant to exploit trust. He met clients in homes or neutral spots, kept encounters under minutes, accepted cash on the spot, and promised inflated refunds. No review. No paperwork exchange. Just promises and immediate payment. According to court filings, from 2009 to April 2015, he filed at least 245 fraudulent returns, resulting in $1,155,006 in losses to the federal government.

“This defendant falsely claimed to be a certified public accountant and a former IRS agent to gain credibility with clients and potential clients,” said U.S. Attorney Eileen M. Decker. “He typically met with his clients at locations other than his office, the meetings typically lasted for only a few minutes, and he ‘guaranteed’ large refunds. All of these factors are red flags that taxpayers should heed when choosing a tax preparer.”

Martinez didn’t just defraud the IRS on behalf of his clients—he defrauded it for himself. The plea agreement reveals he failed to report $162,479 in taxable income in 2011 and $111,000 in 2012 from his tax preparation business. That unreported income led to additional government losses of $52,884 and $33,842 in those years. No records. No accountability. Just cash funneled into the shadows.

“To build faith in our nation’s tax system, honest return preparers need to be assured that dishonest preparers will be held accountable,” stated IRS Criminal Investigation Acting Special Agent in Charge Anthony J. Orlando. “IRS Criminal Investigation, together with the Department of Justice, will continue to investigate and prosecute those who violate our tax system.” The case was investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Paul Rochmes of the Tax Division.

Martinez now faces a statutory maximum of three years in federal prison when sentenced on May 15. He may also be ordered to pay full restitution. The IRS has flagged return preparer fraud as one of its 2016 Dirty Dozen Tax Scams and urges taxpayers to use its free directory of federally authorized preparers. In the underground economy of tax cheats and con artists, Martinez’s name now stands as a warning—and another conviction in the long war against financial fraud.