A former Oregon CPA was sentenced to three years’ probation and fined $1,000 for his role in a scheme to defraud a federally insured bank.

Jerald W. Olsen, 62, of Oregon City, was sentenced Monday by U.S. District Judge Michael W. Mosman to serve 36 months probation and fined $1,000 for his role in a scheme to defraud a federally insured bank. On Aug. 17, 2009, Olsen, a former CPA who practiced in Estacada, Ore., for 20 years prior to relinquishing his CPA license in 2009, pled guilty to charges of conspiracy to make a false statement to a federally insured bank.

Between Nov. 7, 1999 and Nov. 1, 2005, Olsen prepared false federal income tax returns for the years 1998 through 2004 and a false income statement for 2005, all of which listed inflated net income figures, according to prosecutors. Olsen did so at the request of another person, who then presented the documents to Clackamas County Bank as support for obtaining construction and personal loans.

There was no loss to Clackamas County Bank because the loans were paid back. During the hearing, Olsen apologized to the judge for his behavior, and said that he knew that he had done wrong, and would accept whatever punishment the judge was going to give him.

“Certified Public Accountants are at the very top of the list of people who know better than to prepare fraudulent federal income tax returns,” said Marcus Williams, the IRS special agent in charge of the Pacific Northwest. According to the IRS, over 390 tax return preparers were sentenced for various crimes between fiscal years 2008 and 2010.

This investigation was conducted by the IRS’s Criminal Investigation division and was prosecuted by Assistant U.S. Attorney Claire M. Fay.

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