⏱ 2 min read
Elfrin Lee Patten and Laquisha “Cookie” Shelton, two Houston tax preparers, have been indicted for willfully helping clients file false tax returns with the IRS, resulting in thousands of dollars in fraudulent claims. The scheme, which allegedly started in 2019, involved Patten’s tax preparation business, E. Patten Tax Prep, and Shelton, who worked as a preparer for the company. The indictment was unsealed after a federal grand jury returned a 16-count indictment on March 8.
According to court documents, Patten and Shelton used false credits and deductions to lower their clients’ tax liability, with some refunds exceeding $10,000. The pair allegedly charged clients thousands of dollars in fees for their services. The IRS identified at least $30 million in Sick and Family Leave Credits tied to the business.
The indictment also alleges that Patten sent text and WhatsApp messages pressuring witnesses not to cooperate, while Shelton submitted a false affidavit claiming she had never prepared a tax return. Patten’s 2022 tax return allegedly reported false wages and withholdings, accompanied by a false W-2 for a business where he did not work, claiming a refund of $18,386.
Patten and Shelton are charged with conspiracy and aiding in the preparation of false tax returns. If convicted, they face up to five years in prison for the conspiracy count, as well as three years in prison for each of the tax charges, and potential fines of up to $250,000.
Related Federal Cases
- Boulder Man Sentenced for COVID-19 Loan Scam, Boulder CO, 2023 · Kansas
- Pain Clinic PA Charged with Amniotic Fluid Injection Scam, Unknown,… · Oklahoma
- Frisco Man Gets 54 Months for $5M Healthcare Scam · California
- John Doe, Pandemic PPE Scam, New York NY, 2022 · New York
- Andrew Travis Johnson, $4M PPP Scam, Lubbock TX, 2023 · Guam
📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: Texas
- Location: TX
- Source: DOJ Press Release
