A former tax preparer in Mansfield, Festus Adenisimi, has been sentenced to almost five years in federal prison for his role in fraudulent tax preparation and PPP loan schemes. Adenisimi, who owned FA Tax, pled guilty last September to conspiracy to defraud the United States, as announced by Acting U.S. Attorney for the Northern District of Texas Chad E. Meacham.
According to a statement from the U.S. Attorney's Office, Adenisimi, 65, was given a 57-month sentence on March 6, 2025, and was also ordered to pay a hefty sum in restitution—exceeding $10 million. The court documents revealed that Adenisimi engaged in preparing fraudulent tax returns at his business, leading to unjustified IRS refunds to clients, and he didn't stop there, he also admitted to submitting false tax returns for himself.
This case does not exist in isolation, but rather is indicative of the larger scrutiny on the misuse of funds meant to support small businesses during the pandemic. The Justice Department's press release indicated that Adenisimi unlawfully obtained two Paycheck Protection Program loans amounting to $760,415. The Small Business Administration's COVID-19 relief efforts had been exploited, and the court decided that Adenisimi's restitution should cover the damages from both the tax and PPP loan fraud.
The investigation was carried out by the IRS-Criminal Investigations unit, and Assistant U.S. Attorney Marty Basu led the prosecution. Actions like those of Adenisimi led to increased vigilance by government agencies to protect the integrity of relief programs designed to assist small business owners facing unprecedented challenges during the global pandemic. The sentence and subsequent restitution order are intended to serve as a deterrent to prevent similar misconduct in the future.
