Montebello Tax Preparer Admits To Cheating IRS Out Of $8 Million

By EGP News Report

Montebello accountant Mario Placencia, 70, pleaded guilty on Thursday to preparing fraudulent tax returns and submitting falsified documents to the IRS on behalf of his clients.

Appearing before United States District Judge James Otero, Placencia admitted to inflating home mortgage interest on his clients’ federal income tax returns from 2003 to 2009, causing the government to lose $7,982,043 in taxes.

When his clients were audited for the 2004, 2005, and 2006 tax years, Placencia knowingly produced false documents to back up expenses his clients had not incurred, and deductions to which they were not entitled.

Placencia, a resident of Alhambra, is scheduled for sentencing hearing on November 14, 2011, when he will face a possible maximum nine years in federal prison and $750,000 in fines. He may also be ordered to pay restitution up to $5 million as partial compensation.

Placencia was indicted with 62 counts in April. If he had been convicted of all of the charges, he would have been facing as many as 186 years in prison and fines of as much as $15,500,000.

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July 28, 2011  Copyright © 2012 Eastern Group Publications, Inc.

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