WHITE PLAINS, NY – Samuel Gentle, 59, of Mount Vernon, New York, is trading his tax forms for prison stripes. The owner of GenGen, Inc., and GenGen Financial, Inc., was sentenced today in White Plains federal court to 51 months behind bars for a brazen scheme to obstruct the IRS and file false tax returns for his clients, himself, and his businesses. The conviction followed a week-long trial before U.S. District Judge Cathy Seibel.
Former Manhattan U.S. Attorney Preet Bharara, speaking after the sentencing, didn’t mince words: “As established at trial, Samuel Gentle abused his position as a tax preparer to file false tax returns… His fraud resulted in over half a million dollars in losses to the IRS, and now a sentence of 51 months in prison for Gentle.” Bharara’s office proved Gentle built a lucrative business on a foundation of lies, systematically inflating deductions and hiding income.
From 2010 through 2014, Gentle’s operation was a high-volume machine, churning out an average of 3,200 tax returns annually. But the sheer volume masked a consistent pattern of fraudulent activity. Prosecutors presented evidence showing inflated business expenses and bogus charitable donations riddled the returns. Disturbingly, multiple clients testified they never provided Gentle with the information to justify these deductions – he simply fabricated it.
The feds didn’t just rely on client testimony. An undercover IRS agent infiltrated Gentle’s operation, posing as a customer. The agent provided zero documentation to support any deductions. Yet, Gentle, true to form, slapped on false expenses and charitable contributions anyway, proving a deliberate pattern of deceit. The investigation also revealed Gentle was a master of hiding his own money. He spread nearly $1 million in receipts from his tax preparation services across eight bank accounts at five different banks. He also failed to issue the required IRS forms to himself or his employees, effectively keeping his income off the books.
The damage was substantial. IRS audits and trial evidence confirmed Gentle’s crimes caused a loss exceeding $550,000 to the U.S. Treasury. Beyond the prison term, Gentle was slapped with a year of supervised release, a $125,000 fine, and ordered to pay back over $295,000 in back taxes. This isn’t just about money; it’s about a calculated betrayal of the public trust.
The case was spearheaded by Assistant U.S. Attorneys Jennifer Beidel, Margery Feinzig, and James McMahon from the Office’s White Plains Division. Bharara praised the tireless work of the Internal Revenue Service, Criminal Investigation, acknowledging their crucial role in unraveling Gentle’s elaborate scheme. It’s a clear message: playing fast and loose with taxes will land you in federal prison.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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