A tax preparer in Rochester, N.Y., faces up to 10 years in prison and a fine of $853,766 after creating fictitious employers for clients and filing tax returns claiming the Earned Income Tax Credit on their behalf.
Kenyatta Hubbard, 33, of Rochester, N.Y., pleaded guilty to conspiring to defraud the United States before U.S. District Judge David G. Larimer, prosecutors said Monday. Assistant U.S. Attorney John J. Field, who is handling the case, stated that from 2010 to 2012, Hubbard worked at McFarland Tax Company preparing income tax returns.
She allegedly conspired with the owner of the business to prepare false income tax returns for clients by reporting fictitious employment in order to increase the EITC refunds claimed on behalf of the clients, according to prosecutors. As a result of the scheme, the United States was defrauded into paying tax refunds totaling $426,883.
The plea is the culmination of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, acting special agent in charge, of the New York Field Office. Sentencing is scheduled for August 12.
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