Elfrin Lee Patten, Tax Evasion, Texas 2023

Houston, Texas – In a shocking case of tax evasion, two area residents have been indicted for willfully helping clients file false tax returns with the IRS, announced Acting U.S. Attorney John G.E. Marck. The indictment alleges that Elfrin Lee Patten and Laquisha "Cookie" Shelton used false credits and deductions to fraudulently lower their clients’ tax liability.

According to the indictment, Patten ran E. Patten Tax Prep in Houston beginning in at least 2019 for approximately seven years, while Shelton worked as a preparer for the business. The charges allege that they used false Schedule C losses for nonexistent businesses and fraudulent Sick and Family Leave Credits to inflate refunds.

In some cases, refunds exceeded $10,000 and clients were charged thousands in fees, according to court documents. The IRS identified at least $30 million in Sick and Family Leave Credits tied with the business, according to the allegations. Patten and Shelton are charged with conspiracy and aiding and various counts of assisting in the preparation of false tax returns.

Patten is also charged with filing a false tax return in his own name. If convicted, both face up to five years in prison for the conspiracy count, as well as three years in prison for each of the tax charges. They also face potential fines of up to $250,000.

Patten is set to make his initial appearance before U.S. Magistrate Judge Peter Bray at 2 p.m. Shelton has already appeared in federal court following her arrest on April 9. The investigation was conducted by the IRS Criminal Investigation division.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

Patten’s 2022 return allegedly reported false wages and withholdings and was accompanied by a false W-2 for a business where he did not work. The indictment alleges that return claimed a refund of $18,386.

The charges further allege that Patten sent text and WhatsApp messages pressuring witnesses not to cooperate. Shelton also allegedly submitted a false affidavit claiming she had never prepared a tax return.

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