Three Texas Tax Preparers Sentenced to Prison as Part of False Tax Return Scheme

Three Texas tax return preparers - a tax return preparation business owner and two of his employees - were sentenced today to 50 months, 26 months, and 18 months in prison for their roles in conspiring to file false tax returns on behalf of clients. Two other tax return preparers who admitted to filing false tax returns for clients as part of the same scheme still await sentencing.

"No matter the scheme, the agency, or the program involved, those who cheat on their taxes for personal enrichment undermine the very foundation of public trust," said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. "The Fraud Division is working across all fronts to detect, investigate, and prosecute criminal tax violations. We will protect the integrity of our tax system and ensure that those who seek to enrich themselves at the expense of honest citizens face the full weight of federal prosecution."

"Though they used a pencil and paper rather than a gun and a mask, these defendants are nothing more than common thieves," said U.S. Attorney Justin R. Simmons for the Western District of Texas. "The United States is 'We the People,' and when you steal from the people, we will hold you to account. Thank you to our partners at the National Fraud Enforcement Division for their great work here on behalf of the American people."

According to court documents and statements made in court, from approximately January 2019 to October 2022, Mathews Chacko, Anish Pillai, and Subhala Suresh conspired to defraud the United States by filing tax returns for clients that contained false business expenses. These false expenses artificially reduced the taxes that the clients owed to the IRS, which enabled them to receive refunds to which they were not entitled. At times, Chacko and his co-conspirators included false business expenses on client returns without their clients' knowledge, then sometimes provided false explanations to clients justifying the false items. At other times, Chacko and his co-conspirators informed clients by email that they were submitting false information to the IRS. Chacko admitted to causing a tax loss to the United States exceeding $3.5 million but less than $9.5 million. Pillai admitted that he caused approximately $1.5 million to $3.5 million in losses to the United States. Suresh admitted that she caused approximately $250,000 to $550,000 in losses to the United States.

Chacko pleaded guilty to conspiracy to defraud the IRS. Pillai and Suresh both pleaded guilty to aiding and assisting the filing of a false tax return. Chacko was sentenced to 50 months in prison, Pillai was sentenced to 26 months in prison, and Suresh was sentenced to 18 months in prison.

IRS Criminal Investigation investigated the case.

Acting Assistant Deputy Chief Marissa R. Brodney and Trial Attorney Michael L. Jones of the Criminal Division's Tax Section prosecuted the case.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.