Bachary Rushid McGruder, Tax Fraud, Texas 2023

State: Texas
Category: Tax Fraud
Source: <a href="https://www.justice.gov/usao-ndtx/pr/tax-preparer-sentenced-3-years-67-million-tax-fraud" style="color:#cc0000;" target="_blank" rel="nofollow noopener">DOJ Press Release ÃƒÂ¢Ã¢â‚¬Â Ã¢â‚¬â€

Tax Preparer Sentenced to 3 Years in $6.7 Million Tax Fraud

Bachary Rushid McGruder, a 45-year-old owner of M&M Enterprises and Consulting in Waxahachie, Texas, was sentenced to three years in prison and ordered to pay more than $6.7 million in restitution to the IRS.

McGruder was indicted in November 2021 and pleaded guilty in November 2023 to aiding and assisting in the preparation of false tax returns. He was sentenced Thursday by U.S. District Judge Barbara M.G. Lynn.

According to the indictment, McGruder knowingly prepared more than 1,000 fraudulent tax returns for his clients during tax years 2015 through 2018. The false tax returns included fictitious Schedule A itemized deductions like gifts to charity, unreimbursed employee expenses (UEBE), and home mortgage interest; false Schedule C business losses; and false Residential Energy Credits (REC).

McGruder included the false statements on clients’ tax returns without their knowledge, and had clients sign forms justifying the deductions and credits without explaining the forms’ contents to clients. He made his profits from the false tax returns by charging unusually exorbitant fees, which were deducted from the individual tax refunds, charging clients as much as $2,800 for preparing their returns.

The fraud resulted in a tax loss of $6.73 million. IRS – Criminal Investigation conducted the investigation, and Assistant U.S. Attorney Josh Detzky prosecuted the case.

McGruder’s actions demonstrate a blatant disregard for the law and a willingness to take advantage of his clients for personal gain. His sentence serves as a reminder that tax fraud will not be tolerated and will be prosecuted to the fullest extent of the law.

Related Federal Cases