Union County Tax Preparers Admit Roles in Tax Fraud Scheme
Two Union County tax preparers today admitted their respective roles in conspiring to defraud the IRS, filing false personal tax returns, and witness tampering, U.S. Attorney Craig Carpenito announced.
Officials say Samuel Davis Jr., 52, of Plainfield, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to one count of conspiring to defraud the IRS by aiding and abetting the filing of false tax returns, one count of filing false personal tax returns, and one count of witness tampering. Kyna Felder-Ruiz, 35, also of Plainfield, pleaded guilty to one count of conspiring to defraud the IRS by aiding and abetting the filing of false tax returns.
According to documents filed in this case and statements made in court: Davis was the owner and operator of Get Organized Tax & Accounting, a tax preparation business in Plainfield. Davis retired as a detective sergeant from the N.J. State Police in 2016 after 28 years.
Officials say Felder-Ruiz, who was employed by the N.J. State Police as a public safety dispatcher for approximately two years, was employed as a tax preparer at GOTA. For tax years 2011 to 2016, Davis and Felder-Ruiz prepared false individual income tax returns for various GOTA clients. They used a number of fraudulent practices, including falsely claiming deductions and fabricating educational credits in order to obtain refunds for their clients in amounts substantially greater than those to which the taxpayers were entitled.
For tax years 2012 through 2014, Davis filed false personal income tax returns by underreporting business income that he derived from GOTA. By doing so, Davis defrauded the IRS of tens of thousands of dollars in taxes. He also admitted that in October 2018 he became aware that his son had received a subpoena to appear before a grand jury. Davis admitted attempting to persuade his son to provide false testimony to the grand jury.
The tax fraud conspiracy charge to which Davis and Felder-Ruiz pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine.
The witness tampering charge to which Davis pleaded guilty carries a maximum penalty of 20 years in prison and a $250,000 fine.
Sentencing both defendants is scheduled for June 11th.