DOJ: Long Island Tax Preparer Sentenced to 48 Months in Prison for Nearly $12 Million Tax Fraud Scheme

• Beltre prepared false tax returns and fraudulent COVID-19-related credits, resulting in nearly $11 million in improper IRS refunds.
• She also obtained approximately $1 million in fraudulent PPP loans, using proceeds for personal expenses including a home and car.

Damaris Beltre, a former tax preparer in Freeport, New York, was sentenced to 48 months’ imprisonment after pleading guilty to wire fraud and aiding in the preparation of false tax returns. She admitted to defrauding the SBA through false COVID aid applications and was ordered to pay $11,629,000 in restitution.

From January 2021 to April 2024, Beltre prepared and supervised the preparation of fraudulent tax returns, claiming tens of millions in false credits. She also orchestrated a separate PPP fraud scheme from April 2020 to July 2022, obtaining approximately $1 million in loans for personal use.

• $11,629,000 court-ordered restitution
• $11 million improper IRS refunds issued
• $1 million fraudulent PPP loans obtained

• Review client lists and tax return filings for false dependents and COVID-19-related tax credits as seen in Beltre’s scheme.
• Audit PPP loan applications and payroll reports submitted by Beltre’s corporate entities for fraudulent information.
• Cross-check fee structures tied to tax refunds, as Beltre charged a percentage of refunds for fraudulent returns.

This case highlights the risks of tax preparer fraud and misuse of federal COVID relief programs, which can result in significant financial losses and undermine the integrity of tax and benefit systems. Compliance officers must be vigilant in detecting false credits, fraudulent loan applications, and fee structures that incentivize improper filings. The sentencing and restitution order demonstrate the consequences for such conduct and reinforce the need for robust controls and audits to prevent similar schemes.