Paola Bedoy, Tax Fraud, California 2019

Paola Bedoy, a 64-year-old tax preparer from Stockton, California, has been found guilty of all eight counts of preparing fraudulent tax returns after a six-day trial. The conviction was announced by U.S. Attorney McGregor W. Scott.

Bedoy, who operated a tax preparation business called Javez Enterprises, was accused of claiming thousands of dollars in earned income credits and child tax credits based on ineligible dependents. The evidence presented at trial showed that Bedoy listed a child as disabled when he was not, added dependents to returns that clients did not know, and repeatedly sought tax credits based on non-citizen children living in Mexico who did not qualify for those tax credits.

Bedoy’s clients were often directed to have their refund checks sent to her home and a post office box in Stockton, where she would steal portions of their refunds for her own personal benefit. The evidence also revealed that Bedoy would inflate her clients’ tax refunds so that they could pay her tax preparation fees, which she would sometimes increase in exchange for preparing a fraudulent return.

The case against Bedoy was the result of an investigation by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys Christopher S. Hales and Matthew M. Yelovich are prosecuting the case.

Bedoy is scheduled to be sentenced by Judge Kimberly J. Mueller on February 11, 2019. She faces a maximum statutory penalty of three years in prison and a $100,000 fine for each count of conviction. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines.

Bedoy’s crimes resulted in significant financial losses for her clients, with thousands of dollars in tax credits and refunds being claimed based on false information. The conviction serves as a reminder of the importance of honesty and integrity in tax preparation and the consequences of engaging in fraudulent activities.

The case highlights the efforts of law enforcement agencies, such as the IRS Criminal Investigation, to root out tax fraud and protect taxpayers from unscrupulous preparers like Bedoy.

In related news, the IRS has warned taxpayers to be cautious when selecting a tax preparer and to ensure that they are working with a reputable and trustworthy professional.