Southern Indiana Tax Preparers Sentenced to Federal Prison for Multi Million Dollar Tax Fraud Scheme

EVANSVILLE- Two tax preparers have been sentenced to federal prison for orchestrating a multi-year tax fraud scheme that generated millions in fraudulent refunds. Both defendants pleaded guilty to conspiracy to commit wire fraud, aiding and assisting in the preparation and presentation of a false and fraudulent tax return, and filing false tax returns.

Angel De La Rosa, 41, of Jasper, was sentenced to four years in federal prison, followed by two years of supervised release. He was also ordered to pay $15,005,149.83 in restitution.

Yaimy Real, 34, of Louisville, was sentenced to three years in federal prison, followed by two years of supervised release. She was also ordered to pay $ 15,019,543.84 in restitution.

According to court documents and information presented in court, De La Rosa and Real operated a tax return preparation business, "De La Rosa Multiservices," in both Jasper, Indiana and Louisville, Kentucky. From January 2018 through July 2021, they prepared approximately 5,892 fraudulent federal tax returns for tax years 2017 through 2020. Their conduct caused an estimated $10,577,612 in tax loss to the Internal Revenue Service.

A central component of the scheme involved filing returns that falsely claimed the American Opportunity Tax Credit (AOTC). The pair routinely submitted Form 8863 (Education Credits) asserting that taxpayers were enrolled at one of two institutions: Sacerdotes Del Sagrado Corazon, located in Louisville; or YMR Language Services LLC, located in Jasper. Neither entity qualified as an eligible educational institution under federal law. By fabricating tuition and education-related expenses, the defendants generated inflated refunds for clients who were not entitled to receive them.

When the IRS began scrutinizing their clients' returns, the defendants attempted to conceal their fraud by creating and submitting false records. These fabricated documents included enrollment verification letters and receipts designed to make it appear that their clients qualified for the AOTC.

De La Rosa and Real also prepared returns that falsely claimed self-employment losses on Schedule C and inflated itemized deductions on Schedule A.

When preparing returns for their clients, the defendants acted as 'ghost' return preparers. Federal law requires paid tax return preparers to sign the returns they prepare and include a valid Preparer Tax Identification Number. De La Rosa and Real failed to identify themselves as the preparers, which allowed the returns to be filed without disclosing their involvement.

Through the scheme, the defendants collected approximately $736,500 in fees from their clients.

De La Rosa also filed false personal tax returns for tax years 2017 through 2020, causing a tax loss of approximately $6,374. Real filed false personal returns for tax years 2017 and 2018, resulting in a tax loss of approximately $4,000.

"Due to the defendants' deceit, the United States lost over ten million dollars in unjustified refunds. The defendants compounded their fraud by creating and submitting false records during the IRS' investigation," said Tom Wheeler, United States Attorney for the Southern District of Indiana. "Preparing or filing false tax returns is a serious crime that deprives the government of vital revenue for public services, and today's sentence sends a clear warning to anyone considering such fraudulent conduct."

"Angel De La Rosa and Yaimy Real hid in the shadows as ghost preparers, filing fraudulent returns to line their pockets while leaving honest taxpayers to pick up the tab," said Adam Jobes, Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. "IRS-CI special agents followed the money, unraveled the fraud, and brought it into the light. We will continue using our forensic accounting expertise to track down and hold accountable any preparer who thinks they can cheat the tax code without consequences."

The Internal Revenue Service-Criminal Investigations investigated this case. The sentences were imposed by U.S. District Court Judge Richard L. Young.

U.S. Attorney Wheeler thanked Assistant U.S. Attorney Matthew B. Miller, who prosecuted this case.

###