Mount Vernon Tax Preparer Charged With 50 Counts Of Aiding And Assisting Preparation Of False And Fraudulent Tax Returns

Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (“IRS-CI”), announced today the unsealing of a 50-count Indictment of tax preparer SAMUEL GENTLE on charges relating to his false and fraudulent preparation of individual income tax returns for his clients.  According to the Indictment, the loss from GENTLE’s conduct exceeded $630,000.  GENTLE was arraigned today in White Plains federal court before U.S. Magistrate Judge Judith C. McCarthy.  The case is assigned to U.S. District Judge Cathy Seibel.

Manhattan U.S. Attorney Preet Bharara said:  “As alleged, Samuel Gentle abused his position of trust as a tax preparer by systematically assisting taxpayers in filing false and fraudulent returns.  Today’s charges underscore our commitment to pursuing and prosecuting individuals who seek to enable and encourage tax fraud.”

IRS-CI Special Agent in Charge Shantelle P. Kitchen said:  “About 60 percent of American taxpayers use tax professionals to prepare their tax returns.  Fortunately, most tax professionals are reputable and prepare accurate and honest returns for their clients.  IRS Criminal Investigation is responsible for investigating unscrupulous tax return preparers and, working with the United States Attorney’s Office, seeing that they are prosecuted.  I stress the importance of choosing your preparer carefully.  Ask him or her questions about your return and use your common sense in evaluating the answers you receive.”

According to the allegations contained in the Indictment[1]:

GENTLE operated a tax preparation business called GenGen, Inc., located in Mount Vernon, New York.  From 2009 through 2012, GENTLE’s business prepared and submitted to the IRS, on average, 3,400 tax returns each year.  Some of these tax returns were false and fraudulent in that they contained various inflated deductions for business expenses and gifts to charity. 

As part of the investigation of this matter, an undercover IRS agent posed as a client of GENTLE’s.  During the operation, the agent provided GENTLE with a Form W-2 showing income from wages.  Despite being provided no records to support any other deductions, GENTLE included false and fraudulent deductions for business expenses and gifts to charity on the tax return he prepared for the undercover agent.  GENTLE’s inclusion of these false and fraudulent deductions caused the return to fraudulently claim a refund.

*              *             *

GENTLE, 59, of Mount Vernon, New York, is charged with 50 counts of aiding and assisting the preparation of false and fraudulent U.S. individual income tax returns, each of which carries a maximum sentence of three years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Mr. Bharara praised IRS-Criminal Investigation for their outstanding work in the investigation. 

This matter is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys James McMahon and Jennifer Beidel are in charge of the case.     

The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.