Filipina tax preparer sentenced to 18 months in prison for $1.23M fraud scheme

CALIFORNIA — A Filipina tax preparer has been sentenced to 18 months in federal prison for orchestrating a scheme that resulted in more than $1.23 million in fraudulent tax refunds, authorities said.

Amy Evangelista, 60, of Lathrop, was convicted of two counts of aiding or assisting in the preparation of false or fraudulent tax returns, according to U.S. Attorney Eric Grant.

Prosecutors said that from 2017 to 2020, Evangelista falsified more than 1,000 tax returns without her clients’ knowledge, inflating refund amounts by creating fictitious businesses, income, and expenses.

Investigators found that she filed approximately 1,087 fraudulent returns containing false Schedule C entries, causing an estimated loss of $1,234,430 to the Internal Revenue Service.

In one case, Evangelista reported business losses for a client who did not operate any business, supported by a fraudulent Form 1099-MISC. Authorities said similar tactics were used across hundreds of clients.

During the investigation, Evangelista also instructed a client to lie to federal investigators and created false documents to support the fabricated claims.

“This tax preparer betrayed her clients and the American public,” Grant said, adding that the sentence sends a clear message that those who abuse the tax system will be held accountable.

Evangelista has been ordered to pay full restitution to the IRS.

The case was investigated by IRS Criminal Investigation, with prosecution handled by Assistant U.S. Attorney Nchekube Onyima.