Source: United States Department of Justice News
NEWARK, N.J. – A Union County, New Jersey, man admitted 12 counts of preparing a false tax return, U.S. Attorney Philip R. Sellinger announced today.
Terrence LeGall, 69, of Linden, New Jersey, pleaded guilty on Nov. 2, 2022, before U.S. District Court Judge John M. Vazquez in Newark federal court to a superseding indictment charging him with 12 counts of aiding and abetting the preparation of a false tax return.
According to the documents filed on the record and statements made in court:
Between 2013 and 2017, LeGall, the sole operator of a financial adviser and tax preparer service in Union County, New Jersey, called LeGall Group Inc. (LGI), prepared numerous false tax returns for his clients in which he included fake charitable contributions, unreimbursed business expenses and business losses that he knew his clients had not actually incurred. This resulted in a reduction in the clients’ tax liability and a fraudulent refund from the IRS. LeGall acted as a “ghost preparer” – although he prepared income tax returns for his clients, he did not identify himself anywhere on the returns as a preparer and filed the returns in a manner that made it look like the returns had been filed by the taxpayers. LeGall’s actions caused losses in excess of $300,000 to the U.S. Treasury.
Each count of false preparation of an income tax return carries a maximum prison sentence of three years and a $250,000 fine. As part of his plea agreement, LeGall has agreed to pay the government restitution in the amount of $314,225, and to file amended returns and pay any outstanding taxes LGI owes from 2012 through the present. Sentencing has been scheduled for March 29, 2023.
U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Sammi Malek of the Criminal Division and Assistant U.S. Attorney Mark McCarren of the Special Prosecution Division in Newark.