A Long Island tax preparer is facing a 42-count indictment for her alleged involvement in extensive tax and COVID-19 loan fraud. According to the U.S. Attorney's Office for the Eastern District of New York, Damaris Beltre, who ran multiple tax preparation businesses, is accused of causing roughly $12 million in losses to the IRS and the Payroll Protection Program (PPP).
As detailed by federal prosecutors, Beltre allegedly operated three corporate entities through which the misconduct was carried out. Clients were charged over $1 million in fees for fraudulent tax returns that claimed inflated refunds, purportedly pocketing over $2 million in proceeds from the fabricated documents and PPP funds. United States Attorney John J. Durham pointedly criticized the defendant, stating, "My Office will vigorously prosecute individuals like the defendant who think the United States government is an easy target for financial crimes," in a statement obtained by the justice department's press release.
The indictment alleges that Beltre has been engaging in fraud since January 2021, preparing false tax returns and utilizing stolen identities to facilitate the scheme. Allegedly, Beltre directed some of the illicit gains toward personal expenditures, including a payment on a house in the Dominican Republic and the purchase of a Honda CRV. IRS-CI Special Agent in Charge Harry T. Chavis, Jr. clarified the severity of the case, stating, "Beltre is charged with defrauding the government of millions of dollars to fatten her pockets, using stolen identities, fraudulent tax submissions and bogus COVID-19 benefits claims." This was noted in a press release.
While Beltre's indictment is a mix of charges including wire fraud and aggravated identity theft, the case specifically highlights the manipulation of the pandemic relief system set up to aid small businesses struggling amid the global health crisis. Exploiting the PPP, Beltre allegedly filed false payroll reports and tax returns to unlawfully obtain approximately $1 million. In one instance documented by investigators, an undercover agent went to Beltre to have a tax return prepared and, instead of owing money, received a fraudulent refund of over $14,243, recounted in the U.S. Attorney's Office's press release. Beltre is presumed innocent until proven guilty, and the charges against her are mere allegations at this stage.
