Executive Summary
Laws and Precedent
Three Florida men have been sentenced to prison this week for their roles in an extensive scheme to prepare fraudulent tax returns for clients, resulting in millions of dollars in losses to the U.S. government. Jonathan Carrillo received a 121-month sentence, Franklin Carter Jr. was sentenced to 84 months, and Diandre T. Mentor received 36 months for their involvement in operating multiple tax preparation businesses that fabricated deductions to inflate client refunds.
The Fraudulent Scheme Unveiled
From 2016 to 2020, Carter and Carrillo owned and operated Neighborhood Advance Tax (NAT), a tax return preparation business that boasted a dozen offices across Florida. Mentor served as a return preparer at NAT and managed its Orlando office between 2018 and 2019. The trio, alongside co-conspirators, systematically inflated client tax refunds by fabricating deductions on their returns.
The operators of NAT went further by holding periodic training sessions. During these sessions, they instructed other NAT employees on how to prepare the fraudulent tax returns, effectively institutionalizing the deceptive practices.
Successive Ventures and Expanding Fraud
In 2020, Mentor and several co-conspirators launched their own tax preparation business, Smart Tax & Finance. This new venture continued the same fraudulent methods, preparing false tax returns with fabricated deductions for clients. Mentor and his associates also trained franchise owners and employees in these illicit techniques, causing a total tax loss to the IRS of approximately $3,090,077.
Following this, in 2021, Carter, Carrillo, and their co-conspirators established yet another return preparation business called Taxmates. This operation utilized the same office locations previously occupied by NAT. Through Taxmates, they continued to prepare false tax returns, many of which included false deductions, and trained new employees in their deceptive practices. This phase of the scheme alone resulted in a tax loss to the IRS exceeding $12 million.
Additional Sentencings and Restitution
Several other co-conspirators have also been sentenced for their participation in the scheme. Emmanuel Almonor received a 57-month prison sentence, and Adon Hemley was sentenced to 46 months in prison for their respective roles.
In addition to their prison sentences, U.S. District Judge Wendy W. Berger for the Middle District of Florida mandated periods of supervised release and substantial restitution payments. Mentor was ordered to serve three years of supervised release and pay approximately $3,090,077 in restitution. Carter received three years of supervised release and was ordered to pay approximately $12,543,946, while Carrillo also received three years of supervised release and must pay approximately $12,170,066 in restitution to the United States.
Investigation and Prosecution
The comprehensive investigation into this intricate tax fraud scheme was conducted by IRS Criminal Investigation. The prosecution of the case was handled by Trial Attorney Michael L. Jones of the Justice Department’s Tax Division and Assistant U.S. Attorney Megan Testerman for the Middle District of Florida.
