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Colorado Tax Return Preparer Held in Custody for Operating Illicit Business
A federal judge in Colorado has ordered tax return preparer Gerardo Herrera to be held in custody until he closes his tax preparation business following a contempt of court ruling.
Senior District Court Judge John L. Kane for the District of Colorado found Herrera in contempt for violating an earlier order that permanently barred him from the tax preparation business and immediately remanded him to the U.S. Marshal’s Service.
According to court documents, the United States filed a complaint on Sept. 1, 2015, alleging that for at least three years, Herrera and his firm had systematically and repeatedly submitted false income tax returns by reporting extra dependents, claiming bogus deductions, and using improper tactics to understate tax liability.
The permanent injunction issued by Judge Kane on Jan. 7 prohibited Herrera from preparing tax returns and 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.
The United States asked the court to hold Herrera in contempt for his failure to comply with these provisions and alleged that he continued to operate two tax preparation offices and/or assist others in operating the offices.
After hearing testimony from two Internal Revenue Service (IRS) witnesses who had visited Herrera’s offices, Judge Kane found Herrera in contempt and ordered that he be held in custody until he purges his contempt by, among other things, 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 Justice Department’s Tax Division thanked the revenue agents and revenue officers for their assistance in this civil case.
Key Facts
- State: Colorado
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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