Banking & Finance, Human Resources, and Law

Judge sentences tax preparer for fraud

February 23, 2016
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A local tax preparer has been sentenced for conspiracy to defraud the government and aiding in the filing of a false tax return.

U.S. District Judge Paul Maloney sentenced Grand Rapids resident Andres Orrego-Hernandez to 18 months imprisonment for his crimes.

In addition to the prison term, Maloney ordered Orrego-Hernandez to pay $371,648 in restitution to the IRS and to serve two years of court supervision following his release from prison.

Orrego-Hernandez pled guilty before Magistrate Judge Phillip Green last November.

According to the plea agreement filed with the court, Orrego-Hernandez admitted his role in the conspiracy and in aiding and assisting in the preparation of false and fraudulent federal income tax returns.

The returns filed inflated income and/or the number of dependents to qualify for the earned income credit and/or inflated or claimed entirely false deductions or credits to qualify for larger refunds.

Orrego-Hernandez directed the portion of the client refunds attributable to his criminal activity to bank accounts he controlled.

Orrego-Hernandez’s actions defrauded the U.S. of $371,648.

In November, Maloney sentenced co-defendant Humberto Manrique-Mendoza to 18 months imprisonment, followed by 24 months of supervised release and 200 hours of community service in lieu of a fine.

He also ordered Manrique-Mendoza to pay restitution in the amount of $371,648 to the IRS, joint and severally with Orrego-Hernandez.

“Most professional tax preparers provide a great service to their clients. However, those like Orrego-Hernandez and Manrique-Mendoza should remind us all of the importance of selecting a reputable tax return preparer,” said IRS-CI Special Agent in Charge Jarod Koopman.

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