Tax Preparer Charged in New Jersey with 11 New Counts of Tax Fraud
NEWARK, N.J. – David Patterson, a 37-year-old tax preparer from Keasbey, New Jersey, has been charged with 11 new counts of tax fraud, announced U.S. Attorney Craig Carpenito.
Patterson, who owns D&D Tax Service LLC, a tax preparation business located in Keasbey, was originally indicted on May 3, 2018, for allegedly using false information to increase his clients’ tax refunds and secretly diverting a portion of those funds into accounts that he controlled.
The federal grand jury returned a superseding indictment against Patterson, adding eight counts of aiding and abetting in the filing of false tax returns and three counts of failure to file tax returns. The original indictment charged Patterson with 16 counts of aiding and abetting in the filing of false tax returns.
Patterson allegedly prepared multiple fraudulent tax returns on behalf of his clients by falsifying their income, charitable contributions, employee business expenses, and education costs, all so his clients would receive higher refunds than those to which they were actually entitled. He then diverted a portion of the tax refunds to bank accounts he controlled without his clients’ knowledge or consent.
Patterson also failed to file an individual tax return and pay federal income taxes for calendar years 2013 through 2015.
The false filing counts each carry a maximum potential penalty of three years in prison and a $250,000 fine. The failure to file counts each carry a maximum potential penalty of up to one year in prison and a $100,000 fine.
Patterson will be arraigned on the new indictment at a date to be determined.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, the Department of Justice Tax Division, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the U.S. Attorney’s Office Asset Recovery and Money Laundering Unit and Trial Attorney Eric Powers of the Department of Justice Tax Division.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel for Patterson is James Friedman Esq. from New Brunswick, New Jersey.
Defendant: David Patterson
Criminal Charges: 8 counts of aiding and abetting in the filing of false tax returns and 3 counts of failure to file tax returns
City and State: Keasbey, New Jersey
Date: May 3, 2018 (indictment date)
Sentence: pending arraignment
Fine: up to $250,000 for false filing counts and up to $100,000 for failure to file counts
Key Facts
- State: New Jersey
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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