A 55-year-old man from Corona, California, Salvador Gonzalez, has been sentenced to 72 months in federal prison for his role in preparing and filing false tax returns. The U.S. Attorney’s Office for the Central District of California announced the sentencing, which took place on Monday before U.S. District Judge Jesus G. Bernal. In addition to his prison term, Gonzalez has been ordered to pay $403,908 in restitution.
Scheme Overview
Gonzalez operated a tax preparation business called Grace’s Lighthouse Resource Center, Inc., from 2013 to 2021. During this period, he engaged in a scheme that resulted in significant financial losses to the IRS, estimated at $28 million. On June 17, 2024, he pleaded guilty to three counts of aiding and assisting in the preparation of false tax returns.
Fraudulent Activities
Court documents reveal that Gonzalez advised his clients to establish fake corporations and title personal assets, such as homes and vehicles, under these corporate names. He directed clients to submit fraudulent business expenses on their tax filings. An associate prepared tax returns for these sham corporations, using false information supplied by the clients.
Gonzalez incorporated these fabricated business losses into his clients’ individual tax returns, enabling them to pay far less in taxes than legally owed. Additionally, he falsified personal deductions for employee expenses, charitable contributions, and medical costs.
Financial Gains and Legal Consequences
Gonzalez profited from his scheme by initially charging clients a flat fee of $500 per return, later increasing his fee to 1% of their gross income. His fraudulent practices not only defrauded the IRS but also led to serious legal repercussions. A civil complaint has been filed to permanently bar him from preparing tax returns in the future, as announced by the U.S. Attorney’s Office.
- RECALL UPDATE: Falafel Recall Sparks Deadly E. Coli Warning in 18 States - November 22, 2024
- RECALL UPDATE: Nationwide Ground Beef Recall Due to Possible E. Coli Contamination - November 22, 2024
- $856K Stolen Military Gear Sold by Ex-Navy Sailor to China, Russia, and More - November 22, 2024
