A federal judge in Colorado has taken drastic measures to stop a tax return preparer from continuing to commit fraud. Gerardo Herrera, a tax preparation business owner, has been ordered to be held in custody until he closes his business and complies with a permanent injunction.
According to a complaint filed by the United States on September 1, 2015, Herrera and his firm had been systematically submitting false income tax returns for at least three years. The false returns claimed extra dependents, bogus deductions, and used improper tactics to understate tax liability.
Gerardo Herrera has been found in contempt of court for violating an earlier order that permanently barred him from the tax preparation business. Senior District Court Judge John L. Kane for the District of Colorado made this ruling after hearing testimony from two Internal Revenue Service (IRS) witnesses.
The permanent injunction, issued on January 7, prohibited Herrera from preparing tax returns. It also directed him to provide a list of his customers to the United States, notify his customers of the injunction, and file a sworn statement attesting that he had complied within 45 days of the injunction.
Herrera, however, failed to comply with these provisions. Instead, he continued to operate two tax preparation offices and assist others in operating the offices. As a result, Judge Kane ordered that he be held in custody until he purges his contempt by notifying all his prior customers of the permanent injunction, providing a list of his customers to the United States, surrendering his Preparer Tax Identification Number (PTIN), and posting a copy of the injunction in his place of business.
Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division thanks the revenue agents and revenue officers for their assistance in this civil case. Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016.
Gerardo Herrera’s case is a prime example of the importance of choosing a reputable tax preparer. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice website.
Defendant: Gerardo Herrera, Tax Return Preparer Fraud, Colorado 2024
Criminal Charges: Violating an earlier order that permanently barred him from the tax preparation business and failure to comply with the provisions of the permanent injunction
City and State: Denver, Colorado
Exact Date: February 23, 2024
Sentence or Outcome: Held in custody until he purges his contempt by notifying all his prior customers of the permanent injunction, providing a list of his customers to the United States, surrendering his Preparer Tax Identification Number (PTIN), and posting a copy of the injunction in his place of business
Related Federal Cases
- Brian Davison, Tax Return Fraud, Florida 2024 · North Carolina
- DeJane Reaniece Lattany, CARES Act Loan Fraud, Colorado 2023 · Kansas
- DeJane Reaniece Lattany, Wire Fraud, Colorado 2023 · Colorado
- Russell Bryant Lester, Wire Fraud, Colorado 2020 · Kansas
- Damian Delgado, Conspiracy to Commit Mail and Wire Fraud, Tax Evasion, Connecticut 2017 · Florida
Key Facts
- State: Colorado
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
