Tax preparers indicted for filing false tax returns causing thousands in fraudulent claims

HOUSTON - Two area residents are appearing in federal court on charges they willfully helped clients file false tax returns with the IRS, announced Acting U.S. Attorney John G.E. Marck.

Elfrin Lee Patten is set to make his initial appearance before U.S. Magistrate Judge Peter Bray at 2 p.m. Laquisha "Cookie" Shelton has already appeared in federal court following her arrest April 9.

A federal grand jury returned the 16-count indictment March 8, which has now been unsealed.

According to the indictment, Patten ran E. Patten Tax Prep in Houston beginning in at least 2019 for approximately seven years, while Shelton worked as a preparer for the business. The charges allege they used false credits and deductions to fraudulently lower their clients' tax liability. In some cases, refunds exceeded $10,000 and clients were charged thousands in fees, according to court documents.

Patten and Shelton allegedly used false Schedule C losses for nonexistent businesses and fraudulent Sick and Family Leave Credits to inflate refunds.

The charges further allege Patten sent text and WhatsApp messages pressuring witnesses not to cooperate. Shelton also allegedly submitted a false affidavit claiming she had never prepared a tax return.

The IRS identified at least $30 million in Sick and Family Leave Credits tied with the business, according to the allegations.

In addition, Patten's 2022 return allegedly reported false wages and withholdings and was accompanied by a false W-2 for a business where he did not work. The indictment alleges that return claimed a refund of $18,386.

Patten and Shelton are charged with conspiracy and aiding and various counts of assisting in the preparation of false tax returns. Patten is also charged with filing a false tax return in his own name.

If convicted, both face up to five years in prison for the conspiracy count, as well as three years in prison for each of the tax charges. They also face potential fines of up to $250,000.

IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorney Brad Gray is prosecuting the case.

The Department of Justice has created the National Fraud Enforcement DivisionLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link.. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support 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.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.