Houston Tax Preparer Sentenced to Prison for Defrauding the IRS

HOUSTON – The operator of a tax preparation in Houston has been ordered to federal prison following her conviction of knowingly preparing a materially false claim against the United States, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Rick Goss of IRS-Criminal Investigation (IRS-CI). Adriana Lizette Luna pleaded guilty Sept, 17, 2015, admitting she prepared a materially false 2011 U.S. Individual Income Tax return.

Today, U.S. District Judge Sim Lake, who accepted the guilty plea, handed Luna an 18-month sentence to be immediately followed by two years of supervised release. She was further ordered to pay a $116,000 in restitution.

“Cheating the government, including making bogus claims for tax refunds hurts everyone. The money that is fraudulently taken comes out of the pockets of all honest people that pay their taxes,” said Goss. “IRS special agents will continue to protect our taxpayers from those that compromise the integrity of our nation's tax system for personal greed.”

According to the written plea agreement filed in the record of the case, Luna operated an income tax preparation business known at times as Ruby’s Income Tax and Diaz Tax Service at other times. As part of the plea, Luna admitted preparing at least 23 false income tax returns for clients, including the 2011 return which the basis for her plea which claimed a false refund of approximately $11,724. 

Luna admitted in the plea agreement that the intended tax loss on the 23 false tax returns she prepared was more than $235,000 and that she split roughly one-half of the false tax refunds with her clients. As part of the plea, she has agreed to pay restitution to the United States in the amount of $116,000.   

Luna was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.  

IRS-CI investigated. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.