SAN FRANCISCO– LAWFUEL – Law News, Law Jobs – United States Attorney Kevin V. Ryan announced that Jesse James Padua was sentenced on September 13, 2006, to 24 months in prison, one year of supervised release, and ordered to pay $204,155 in restitution.
In pleading guilty on June 8, 2006, Mr. Padua, 47, of San Lorenzo, California, admitted that during the period from 1999 to 2004 he operated a business, Padua Tax Services, from his home in San Lorenzo, California, where he prepared income tax returns for a fee. To generate business, he routinely falsified these returns, and instructed his employees to falsify these returns, by inflating or fabricating expenses for credits and deductions. To create the appearance that the amounts were genuine, Mr. Padua and, per his instructions, his employees avoided the use of even numbers. To conceal his conduct, Mr. Padua, and his employees avoided claiming deductions in amounts which might require his clients to submit receipts to the IRS. As a result, Mr. Padua’s clients would receive refunds in greater amounts than they were entitled to.
According to IRS–Criminal Investigation Special Agent in Charge, Roger L. Wirth, “Most tax professionals follow the laws. Unfortunately there are those relatively few that don’t, and they can cost the taxpaying public dearly. IRS Criminal Investigation will continue to investigate and recommend prosecution against return preparers who knowingly prepare false tax returns on behalf of others.”
Mr. Padua took a direct financial interest in securing refunds for his clients. He would permit his clients to make partial payments with post-dated checks. He would delay negotiating the checks until his clients had received and deposited their refunds.
According to the plea agreement, Mr. Padua admitted that he personally reviewed and authorized over sixty-five false tax returns resulting in a combined tax loss of $216,499. As part of his plea, he has agreed to make restitution in the amount of $204,155 in lieu of a fine
On May 23, 2006, Mr. Padua was charged with four counts of aiding and assisting in the preparation false income tax returns in violation of 26 U.S.C. 7206(2). Under the plea agreement, he pleaded guilty to all counts.
Blake D. Stamm is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Katherine Huynh. The prosecution is the result of a year long investigation by the Internal Revenue Service Criminal Investigation.
The sentence was handed down by U.S. District Court Judge Charles Breyer. The defendant will begin serving the sentence on November 1, 2006.
