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Tax Credit and Deduction Fraud

This archive displays posts tagged as relevant to tax credit and deduction fraud. You may also be interested in the following pages:

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June 22, 2018

Tax preparers Joseph Racine and Arnouse Merlien pled guilty to conspiracy to violate the Internal Revenue Code by falsely claiming tax credits and deductions for their clients. Racine and Merlien defrauded taxpayers of over $3.5 million. The investigation showed that Racine and Merlien improperly claimed the tax credits and deductions for their clients to increase the amount of fees they could charge their clients. USAO NDGA

February 6, 2018

Andre Bernard of Mount Kisco, NY was sentenced to 87 months in federal prison for conspiracy to commit wire fraud, making false statements related to the Clean Air Act, and his participation in a multi-state scheme to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel credits and fraudulently claiming tax credits. As part of his sentence, the court also entered a money judgment in the amount of $10.5 million, the amount of proceeds of the charged criminal conduct that the defendant personally received. Two accounts already seized from the defendant worth in excess of $1.5 million will be credited against the money judgment. DOJ

August 2, 2017

Andre Bernard, of Mount Kisco, New York, pleaded guilty for his participation in a multi-state scheme to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel credits and fraudulently claiming tax credits. According to his plea, Bernard conspired with Thomas Davanzo, of Estero, Florida, Robert Fedyna, of Naples, Florida, and Scott Johnson of Pasco, Washington in a scheme to defraud biodiesel credit (known as "RIN" credits) buyers and U.S. taxpayers. The conspiracy involved having Gen-X Energy Group (Gen-X), headquartered in Pasco, Washington, and its subsidiary, Southern Resources and Commodities (SRC), located in Dublin, Georgia, generate fraudulent RINs and tax credits multiple times on the same material. Bernard and his co-conspirators operated several shell companies that claimed to purchase and sell the renewable fuel. The co-conspirators received at least $42 million from the sale of these fraudulent RINs to third parties. In addition, Gen-X received approximately $4,360,724.50 in false tax credits for this fuel. DOJ

Fraudsters of The Week -- Fred Witmer and Gary Jury, Indiana Executives Convicted of Biofuel Fraud

Posted  07/21/17
This week, a judge sentenced two biodiesel executives to several years in prison for defrauding the federal government’s renewable fuel support and tax credit programs. Fred Witmer and Gary Jury are the co-owners of Indiana-based Triton Energy LLC, a company that purported to produce and sell biofuel for use in transportation.  Instead, the two men used Triton to orchestrate a scheme to fraudulently produce...

February 22, 2016

The Justice Department filed a lawsuit asking a federal district court in Houston, Texas, to permanently bar two men from preparing false tax returns. The defendants named in the lawsuit are John E. Carter, individually and doing business as Midwestern Financial Group Inc., and Sulayman Mamadou Jarra, individually and doing business as African Art Appraisal Services. According to the complaint, Carter promoted a tax evasion scheme to his clients, telling them they could reduce their federal tax liability by supposedly donating African tribal art to an educational institution or museum. The complaint states that Carter provided his clients with an appraisal by Jarra that substantially overvalued the art, and that for many of the returns, the signature was forged on the Internal Revenue Service form where the institution purportedly acknowledged receipt of the art. DOJ

January 26, 2017

New York announced a lawsuit against STAR Exemption Advisor, YCA Corp. and its business owner Arie Gal, for allegedly scamming thousands of new homeowners out of at least $1.5 million by charging them excessive fees to enroll them in the Basic STAR Exemption Program, which is otherwise free. The lawsuit, filed in Nassau County Supreme Court, seeks to provide full restitution to all those affected, and a complete accounting to identify all consumers who are entitled to such refunds. The lawsuit also seeks additional costs, damages, and to permanently enjoin the respondents from marketing any Basic Star rebate or property tax reduction services within the State of New York. The Attorney General’s office also secured a temporary restraining order enjoining the defendants from continuing doing business in New York State, to pay full restitution and damages to all injured consumers and to render a full accounting of all victims to the office. The temporary restraining order also froze all of the defendants’ assets. NY

January 24, 2017

A former Queens, New York return preparer pleaded guilty to aiding and assisting in the preparation of false income tax returns. According to documents filed with the court, from in or about 2004 through 2014, Vanya Thompson, 39, ran a tax return preparation business, which operated under a number of names, including Lyn Services, Ricardo Multi-Service and Katie’s Multi-Service. To generate larger refunds for her clients, Thompson falsified items on their returns such as charitable deductions and business income, expenses, and losses, causing a tax loss of more than $250,000. DOJ

September 29, 2016

Chemoil Corporation agreed to retire 65 million renewable fuel credits to resolve alleged violations of the Renewable Fuel Standard program.  The current market value of the credits -- along with an additional 7.7 million renewable identification numbers already retired by Chemoil in the lead up to this settlement -- is more than $71 million.  Chemoil also will pay a $27 million civil penalty under the settlement, the largest in the history of the EPA’s fuel programs.  The RFS program requires exporters to retire RINs for renewable fuel like biodiesel, because the fuel exported is no longer available for blending into United States’ fossil fuel supply and, for that reason, cannot be used to meet the renewable fuel volume mandate established by Congress.  If exporters fail to retire the appropriate number and type of RINs associated with the exported fuel, it artificially inflates the volume of renewable fuel available for blending in this country and the number of RINs available to meet the renewable fuel volume mandate.  According to the government, ensuring exporters comply with the regulations for RIN retirement is critical to the proper functioning and integrity of the RFS program.  DOJ

March 7, 2016

Philip Joseph Rivkin (aka Felipe Poitan Arriaga) was sentenced to 121 months in prison and to pay more than $87 million in restitution and forfeit $51 million for generating and selling fraudulent biodiesel credits in the federal renewable fuel program through his companies Green Diesel LLC, Fuel Streamers Inc. and Petro Constructors LLCDOJ

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