DISTRICT ATTORNEY - NEW YORK COUNTY

NEWS RELEASE
July 15, 2009

Contact: Alicia Maxey Greene
212-335-9400

Manhattan District Attorney Robert M. Morgenthau announced today the arrest and guilty pleas of a Washington Heights tax preparer who filed dozens of false and fraudulent tax returns for her clients over the past four tax seasons.

The defendant, MIGUELINA FANA, 40, pleaded guilty to “Aiding or Assisting in the Giving of Fraudulent Returns, Reports, Statements or other Documents; Personal income and Earnings Taxes,” in violation of Tax Law §1807(b), a class E felony, and one count of Welfare Fraud in the Third Degree, in violation of Penal Law §158.15, a class D felony.

FANA will be sentenced to prison for 40 weekends, and must pay $11,732 in restitution to the New York City Human Resources Administration and $30,000 in criminal fines. In addition, FANA has agreed to pay $20,000 in civil penalties under the tax law for aiding and assisting in filing false tax returns.

The investigation leading to today’s guilty pleas revealed that during the 2006 through 2009 tax seasons, FANA, the owner of Fana Enterprises, a tax preparation business at 570 W.189th Street, received compensation of up to $295 from each of her clients to prepare dozens of personal income tax returns for the tax years 2005 through 2008. Those returns, filed with the New York State Department of Taxation and Finance, falsely represented that the taxpayers had dependants, when in truth and fact the taxpayers did not. The clients paid between $500 and $800 for the names and social security numbers of many children; some of these numbers were issued in Puerto Rico. This information was used by the taxpayers to claim undeserved tax credits and inflate the amount of their tax refund. Many residents of Puerto Rico are not obligated to file federal tax returns and thus do not themselves claim deductions for dependants and child care providers. Most of the tax returns were filed electronically by FANA. Fortunately the fraudulent refunds sought in the last two tax seasons, for the 2007 and 2008 tax returns, were stopped without loss to the State treasury. The amount of fraudulent refunds actually paid exceeds $50,000.

The investigation further revealed that from January 1, 2004 to July 1, 2007, FANA obtained health care insurance paid for by the New York City Human Resources Administration for herself and her two children by understating her income from her employer and by omitting income from her tax preparation business on the applications for public benefits.

Said Mr. Morgenthau: “The conduct of tax preparers who use their professional expertise to facilitate widespread tax evasion will not be tolerated, particularly in this case where not only honest taxpayers are left to carry a heavier burden but where the names of innocent children and adults are being falsely represented as dependents and babysitters for tax credits. This program of tax credits is intended to assist those individuals raising families on limited means, and abuses such as this put the program into jeopardy.”

Mr. Morgenthau thanked Acting Commissioner Jamie Woodward of the New York State Department of Taxation and Finance and her staff, Attorney-in-Charge Robert Eisman, Investigators Cheryl Holland, Angelique Aponte, Robert Devnani, Rebecca Garcia, Paul Gouck, George Bean Auditors Nicholas Capkovic, Ronald Chan, Elias Delrosario, and Hui-Qing Cheu who assisted in the FANA case.

Mr. Morgenthau also thanked New York City Human Resources Administration Investigator Morgan Neuwirth and his supervisor, Assistant Deputy Commissioner Alida Mattos, of HRA’s Bureau of Fraud Investigation.

Assistant District Attorney Maurice Mathis prosecuted the case under the supervision of Attorney Gilda I. Mariani, Chief of the Money Laundering and Tax Crimes Unit. District Attorney’s Chief Investigator Joseph Pennisi, Assistant Chief Investigator Terry Mulderrig, Investigators Jonathan Savel, Erika Figueroa, Diana Keam, and Harris Goldner also assisted in the Fana case.

Defendant Information:

MIGUELINA FANA, 1/24/1969
120 Vermilyea Avenue
New York, New York

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