Tax Preparer Sentenced To 36 Months For Preparing False Tax Returns And Making False Statements

NEWPORT NEWS, Va. – Robert E. Herring, 69, of Newport News, Va., has been sentenced to 36months in prison, followed by one year of supervised release, for preparing false federal income tax returns for clients to submit to the IRS or to mortgage lenders.

            Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Sheila Olander, Acting Special Agent in Charge, IRS Criminal Investigation, Washington, D.C., Field Office, made the announcement after sentencing by United States District Judge Robert E. Doumar on Feb. 5, 2013.

“Return preparer fraud is a priority for IRS Criminal Investigation, said IRS Acting SAC Olander. “We have committed to working with our law enforcement partners to investigate and prosecute cases just like these.  Fraud schemes, such as Mr. Herring’s, cause tremendous financial damage to everyone, especially those which defraud the IRS and other financial institutions.  This sentence demonstrates our collective efforts to enforce the law and ensure public trust.”

            Herring pled guilty on May 5, 2012, to aiding in the preparation of false tax returns and making a false statement to HUD/FHA. According to court documents, Herring operated Have Taxes Financial Service and GL&JS Tax Service, both of which performed tax preparation services. From 2006 through 2009, Herring would file returns – in many instances without the client’s knowledge or consent – that understated income and overstated expenses for a client’s federal tax return, and then file an amended return reporting increased income for certain clients who needed to obtain real estate financing. He prepared at least 19 false returns with a resulting tax loss of $174,845, and he deposited certain tax refunds into his own account without providing them to the taxpayer to whom the refund was owed. His mortgage fraud resulted in losses to the mortgage lender of $917,287.

            This case was investigated by IRS Criminal Investigation.  Assistant United States Attorney Brian Samuelsprosecuted the case on behalf of the United States.

A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.