Saul Valdez, Tax Fraud, Washington 2018

Seattle – In a shocking exposé, Saul Valdez, owner of Vancouver-based business Conexion Latina, has pleaded guilty to tax fraud charges, announced U.S. Attorney Nick Brown. The unlicensed tax preparer led his immigrant clients to believe he was filling out their tax forms correctly, but instead, he inserted false deductions and expenses on tax returns, lowering their tax obligations.

Valdez faces up to three years in prison when sentenced by U.S. District Judge Benjamin H. Settle on August 28, 2023. This sentencing is a direct result of his plea agreement, which stipulates that he operated his business, providing services to primarily non-English speaking clients who had little understanding of the U.S. tax system.

According to the plea agreement, Valdez used programs such as TaxAct and TurboTax to prepare clients' taxes. For tax year 2017, he admits claiming false and fraudulent expenses, donations, and credits on 36 different tax returns, resulting in a tax loss of $54,045. This amount is the exact amount of restitution Valdez has agreed to pay.

A statistical sampling of 50 of some 2000 returns prepared by Valdez from 2016 through 2018 revealed a total tax loss of $1,293,921. This staggering figure highlights the severity of Valdez's crime and the devastating impact it had on his unsuspecting clients.

Aiding and Assisting in the Preparation and Presentation of a False and Fraudulent Return is punishable by up to three years in prison. Prosecutors have agreed to cap their sentencing recommendation at 30 months in prison, a clear indication of the seriousness with which the authorities view this case.

The case is being investigated by Internal Revenue Service Criminal Investigations (IRS-CI). Assistant United States Attorney Kristine Foerster is handling the prosecution.

As the Grimy Times continues to shed light on the dark underbelly of tax evasion, it is clear that Saul Valdez's actions have put his clients at risk of owing back taxes and penalties, not to mention the stress of contact from the IRS.

The tax preparer's modus operandi leaves no doubt that he exploited his clients' trust and lack of understanding of the tax system for personal gain. His actions are a stark reminder of the importance of vigilance in protecting oneself from unscrupulous individuals.

Source: https://www.justice.gov/usao-wdwa/pr/unlicensed-vancouver-washington-tax-preparer-pleads-guilty-aiding-and-assisting