By: Richard L. Smith
A Jersey City tax preparer has admitted to federal tax evasion charges after authorities say he diverted more than $1 million from a charitable organization he helped oversee.
According to federal officials, Edward M. Lombard pleaded guilty on March 4 before Esther Salas in Newark federal court to one count of tax evasion.
Investigators said Lombard, who operated a tax preparation and accounting business in New Jersey, also served as a director and financial manager for a charitable foundation.
Between 2014 and 2017, he controlled the organization’s finances and diverted funds from its bank accounts for personal use.
Authorities determined the money was used to support personal expenses, including gambling activity, business investments, mortgage payments, insurance costs, credit card bills, and alimony.
Federal officials said Lombard later filed his own tax returns but failed to report the diverted funds as income.
As a result, he understated his taxable income by more than $1.2 million, leading to an estimated tax loss of approximately $420,000.
The case was investigated by IRS Criminal Investigation, which continues to pursue financial crimes involving abuse of trust and misuse of funds.
Lombard now faces a maximum penalty of up to five years in prison and a $250,000 fine. Sentencing is scheduled for August 5, 2026.