Long Island Tax Preparer Pleads Guilty to Nearly $12 Million Tax Fraud Scheme

Defendant Also Admits to Bilking the Small Business Administration Out of Nearly $1 Million in Fraudulent Paycheck Protection Program Loans 

Earlier today, in federal court in Central Islip, Damaris Beltre, a former tax preparer in Freeport, New York, pleaded guilty to two counts of wire fraud and one count of aiding and assisting in the preparation of false tax returns.  The proceeding was held before United States District Judge Sanket J. Bulsara.  When sentenced, Beltre faces a maximum sentence of 53 years’ imprisonment, as well as restitution of approximately $12 million. 

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI New York) announced the guilty plea.

“Beltre brazenly defrauded the government and callously put her clients in jeopardy to line her own pockets,” stated United States Attorney Nocella.  “Today’s guilty plea should serve as a warning to anyone who, like this defendant, views federal programs and the federal treasury as their own personal piggybanks, that you will be arrested and vigorously prosecuted.”

Mr. Nocella also expressed his appreciation to the United States Customs and Border Protection, New York Field Office, the Freeport Police Department, and the U.S. Small Business Administration (SBA) for their assistance on the case.

“Beltre was a shady tax preparer with a complete disregard for U.S. law or the American public she failed when she fraudulently claimed tens of millions of dollars in COVID-19-related tax credits.  She hoarded funds meant for those with a legitimate need just to fatten her own pockets.  With today’s plea, she can move forward with facing the full consequences of her actions,” stated IRS-CI New York Special Agent in Charge Chavis.

As set forth in court filings and at today’s guilty plea proceeding, Beltre owned and operated multiple corporate entities offering tax preparation and other financial services in Freeport, New York. From approximately January 2021 through April 2024, Beltre personally prepared, and supervised employees in the preparation of, false and fraudulent individual income tax returns, and associated schedules and forms, for her client-taxpayers, which were submitted to the IRS.

The tax returns that Beltre prepared and caused to be prepared for her clients listed false dependents and fraudulently claimed tens of millions of dollars in COVID-19-related tax credits and motor fuel income tax credits to directly reduce tax liability and provide substantial refunds to which her clients were not entitled.  Beltre’s clients paid over $1 million in fees for her services preparing these false returns, which included a percentage of any tax refund issued.  For example, in April 2023, a federal agent acting in an undercover capacity (the UC) hired Beltre to prepare his individual income tax return.  If prepared accurately, the UC would have owed the IRS approximately $205.  By contrast, the defendant prepared an income tax return for the UC which contained false and fraudulent statements and baseless tax credits, and which thereby claimed a refund of over $14,243.  Beltre charged the UC $2,200 in fees to prepare and submit the fraudulent tax return.  As a result of this years-long scheme, the IRS improperly issued nearly $11 million in tax refunds to the defendant’s clients, and failed to collect several million dollars as a result of fraudulently reduced tax liabilities.  

In a separate Paycheck Protection Program (PPP) fraud scheme, from approximately April 2020 through July 2022, Beltre filed and caused to be filed false payroll reports and income tax returns with the IRS on behalf of her corporate clients to fraudulently obtain PPP loans from the SBA, totaling approximately $1 million.  Beltre used these proceeds, and those generated from the tax preparer fraud scheme described above, for personal expenses, including paying personal debts, to fund a home in the Caribbean, and to purchase a car and jewelry.