Donald Stewart, Theft of Public Funds, Louisiana 2023

A New Orleans tax preparer has been sentenced to prison for the theft of public funds and aggravated identity theft, announced Principal Deputy Assistant Attorney General Caroline Ciraolo and U.S. Attorney Kenneth A. Polite for the Eastern District of Louisiana.

Donald Stewart, 60, of New Orleans, Louisiana, was sentenced to 36 months in prison, followed by one year of supervised release. He was also ordered to pay restitution in the amount of $577,202.97 to the IRS.

According to court-filed documents, Stewart pleaded guilty to one count of theft of public funds and one count of aggravated identity theft. From approximately 2001 through 2008, Stewart acted as a return preparer under the business names Stewart’s Tax Service and Stewart LTD, before the Internal Revenue Service (IRS) suspended his Electronic Filing Information Number.

From January 2011 through February 2012, Stewart admitted causing federal tax refunds in the names of others to be electronically deposited into bank accounts under his control. Stewart also admitted to cashing or depositing U.S. Treasury checks made payable to others, which represented federal income tax refunds totaling approximately $539,393, at a bank in the New Orleans area.

In addition, Stewart obtained and used the means of identification of another individual, including their social security number, during and in relation to wire fraud, when he filed a false tax return using another individual’s name and took the resulting refund for himself.

The investigation was conducted by special agents of IRS-Criminal Investigation, and the case is being prosecuted by Assistant U.S. Attorney Hayden Brockett and Tax Division Trial Attorney Lauren Castaldi.

The Tax Division works to enforce the nation’s tax laws, largely through the litigation of cases involving tax evasion, tax shelters, and the misuse of tax-exempt organizations.

The case was prosecuted in the Eastern District of Louisiana.

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